Consumer alert: Payday loans

LOOK AT THE APR!!!!

FORT WORTH — With more people strapped for cash than ever these days, payday loans have become big business.

It's reached the point that Fort Worth is now home to more payday lenders than banks and credit unions.

Payday lenders are cashing in as North Texans who are down on their luck try to stay ahead of bills. If you're in a pinch and you need a few hundred bucks in cash, you can get it — immediately.

But if you can't repay that short-term loan, you're looking at a debt trap. Interest is calculated at rates reaching nearly 400 percent annual percentage rate.

At Cash America, the fees are all listed up front: $18 for every $100 loaned. On a typical $300 loan, you're looking at fee of $54.

But falling behind will cost you, a slippery slope that critics say isn't worth the gamble.

Cash America spokeswoman Yolanda Walker disagrees, saying payday loans fill a need for those in dire straits.

"Where are they going to go if they run into an emergency situation where they need cash quickly, and they don't necessarily have good credit?" Walker asked. "You can't go to your bank; they're not going to give it to you. You can't go to your credit union; they're not going to give it to you."

Even so, one woman who fell behind said what started as a $300 loan for her ballooned to $8,000 as she went from payday lender to payday lender trying to get caught up..

Last year, Congress acted to cap the loans given to members of the U.S. military at 36 percent APR.

Texas is one of the few states with no regulations concerning payday lenders. In states that have established rules to limit interest rates, there has been a decrease in the number of such establishments.

http://www.wfaa.com/sharedcontent/dw....72eab6fb.html

If you're Italian, and you do this in your neighborhood, you go to jail.

If you're a bank, it's all legal, it's ok!

they give a bit of a break at $700.

how do i get into that.

Originally Posted by Chris90

If you're Italian, and you do this in your neighborhood, you go to jail.

If you're a bank, it's all legal, it's ok!

hahah.

these places are all over the mexican areas in phx

Originally Posted by DJ_INHALE

hahah.

these places are all over the mexican areas in phx

Do they give out mortgages also?

this is news now?

about a year ago, NPR had an article about an Iraq vet who owed 5K on a 700 loan the min. payments were less than 1/2 the interest charge.

Another lady had around 21k....

Crooks, all of em.

I never understood payday loans or anyone who would use them.
Dumbing down of America I suppose...

Originally Posted by mullman

I never understood payday loans or anyone who would use them.
Dumbing down of America I suppose...

it's for people who live pay-check-by-check and for whatever came up they missed a pay check or expenses came up.

the scary thing is that 40% of americans do

http://briankim.net/blog/2007/09/why...k-to-paycheck/

Originally Posted by HW

the scary thing is that 40% of americans do

http://briankim.net/blog/2007/09/why...k-to-paycheck/

That is absolutely shocking.

Common sense is anything but common these days I suppose.

.

Originally Posted by HW

it's for people who live pay-check-by-check and for whatever came up they missed a pay check or expenses came up.

the scary thing is that 40% of americans do

http://briankim.net/blog/2007/09/why...k-to-paycheck/

IF I was living pay check to pay check and couldn't pay bills or whatever. I would never get a payday loan. The interest will just balloon the payment and I'll never be able to catch up.

Originally Posted by pintnight

IF I was living pay check to pay check and couldn't pay bills or whatever. I would never get a payday loan. The interest will just balloon the payment and I'll never be able to catch up.

the point thought is that if you're living pay check to pay check to meet your steady state living expenses, a transient of any kind like medical bill, car repairs, housing repair or whatever would throw everything out of whack. some people may be living it large or some may be just scraping by eating mac'n'cheese or ramen.

Originally Posted by HW

the point thought is that if you're living pay check to pay check to meet your steady state living expenses, a transient of any kind like medical bill, car repairs, housing repair or whatever would throw everything out of whack. some people may be living it large or some may be just scraping by eating mac'n'cheese or ramen.

If I ended up with a very large unpayable medical bill or whatever, I'll just say "Sorry, I can't pay the bill."

But, I agree with the part that there are people living well outside their income. They are trying to keep up with the Jonese or trying to impress people they expensive cars they drive or whatever.

Originally Posted by pintnight

IF I was living pay check to pay check and couldn't pay bills or whatever. I would never get a payday loan. The interest will just balloon the payment and I'll never be able to catch up.

You're also smarter than their avg. audience by at least 50 IQ points. I don't think you're whom they're after.

Sickening... Blood sucker business.

It's easy to criticize, but if you found yourself in their shoes, with a family to feed and nobody to turn to....

Originally Posted by 'Cane

It's easy to criticize, but if you found yourself in their shoes, with a family to feed and nobody to turn to....

I'd rob the joint before I took a loan from them.




I kid I kid.

Some states (not Cali.) allow pawn shop type loans on your car. A bunch of people in Florida lost their cars who couldnt make the payments.

Originally Posted by 'Cane

It's easy to criticize, but if you found yourself in their shoes, with a family to feed and nobody to turn to....

Then you take a second, third job.

And believe me, I know what I am talking about, and I never used those loans.

They knew what they were getting into, just like all those "I didn't know" mortgage defaulters.

Originally Posted by Stuka

Then you take a second, third job.

And believe me, I know what I am talking about, and I never used those loans.

They knew what they were getting into, just like all those "I didn't know" mortgage defaulters.

there are a large proportion of people that are seriously bad with money and stupid in general. if that wasn't the case, then the wealth spread between the rich and poor wouldn't be as great as it is right now.

Montel says it's ok - it must be OK

Poor mob guys
The state governments take away the numbers rackets with the lottery.
The big corporations took over Vegas. Although maybe the Corps are the mob, that's another story.
Now the native Americans have stolen loan sharking. Lol gotta love the dispute resolution jurisdiction.

Maybe the mob needs better lobbyists.

When you are down and went under, working a couple Part time jobs in between looking for the third one. But always doesn't seem to make enough? Then what choice do you have? LIke they said, bank won't give it to you, credit union won't give it to you. Say your baby BMW broke down and wife said no money to repair since food is more important than you damn car. What do you do? You work you a$$ off. In this age, more and more people have trouble looking for a decent full time job.

Originally Posted by dtkw

When you are down and went under, working a couple Part time jobs in between looking for the third one. But always doesn't seem to make enough? Then what choice do you have? LIke they said, bank won't give it to you, credit union won't give it to you. Say your baby BMW broke down and wife said no money to repair since food is more important than you damn car. What do you do? You work you a$$ off. In this age, more and more people have trouble looking for a decent full time job.

Since you brought this old thread back from the dead, are we to assume that you've either (a) recently used a payday loan service, or (b) started a payday loan service?

If you really want some fun, read the Western Sky terms of use. While the interest rate is only 135%, you're bound to settle any disputes in Cheyenne River Sioux Tribal Court. You might as well just deal with your local loan shark.

Originally Posted by cwsqbm

Since you brought this old thread back from the dead, are we to assume that you've either (a) recently used a payday loan service, or (b) started a payday loan service?

If you really want some fun, read the Western Sky terms of use. While the interest rate is only 135%, you're bound to settle any disputes in Cheyenne River Sioux Tribal Court. You might as well just deal with your local loan shark.

He didn't bring it back from the dead. A spammer did, we deleted the spam, but not before more posts were made after it surfaced again.