A payday loan doesn’t have an APR
This is part two. If you missed part one of this payday loan defense, click HERE.
We already know that payday loans are not annual loans. Kindel does too. Cashland provides loans for periods of 14 to 30 days maximum, and only $15 is charged per $100 loaned. That does not equal a 391 percent interest charge; it doesn’t come anywhere near. Misinformed government group-think – “Oh, the blanket application of TILA is the way to go, even though faxless payday loans didn’t exist in 1968 when the law was written!” – smacks of ignorance. This may seem like business as usual. Yet it isn’t right to apply an outdated law to a relatively new industry. To widen this example, is this what the framers of the constitution had in mind when they granted “the right to bear arms?” Could they have even conceived that such a thing as this would happen?
It doesn’t make sense
Lisa Ferguson agrees. “We’re talking about a two-week loan. You can’t take the loan out for a year. To attach (an) APR (annual percentage rate) doesn’t make sense.” She also claims that 90 percent of Check Into Cash’s customers pay their loans on time, and those who don’t are worked into an extended payment program. They cannot take a loan from that store to pay for a previous loan from that store.
If government in Ohio is so concerned about the tiny minority of people who go to different quick payday loan companies to pay off loans, then perhaps regulation should be enforced that creates a national database to prevent consumers from having multiple payday loans at the same time. That would have nothing to do with capping interest rates, which puts people out of work and sends consumers to more dangerous options like checking overdraft. For more on the payday loan fight in Ohio, continue reading HERE.
Lisa Ferguson is absolutely right; APR does not apply at all. You can’t call a fee interest – it isn’t interest, it is a charge for using a service. The consumer advocate groups liken getting payday loans to going to a loan shark, and that is completely a falsehood. A $15 to $30 fee per $100 loan is less than you pay on a credit card or some mortgages, and certainly less than what loan sharks actually charge.
I am sorry but your wrong its interest. when you make MONEY from MONEY thats called interest does not matter how its applied.
I think $15 is a LOT of money for $100
that’s 15% INSTANTLY is the fee smaller if they pay it back sooner? we just called that a fixed interest/payment loan.
if the PAYBACK rate is so damned good as you claim why do they need to charge SO much money?
so if someone borrows $300 from you for 14 days you think $45 is a FAIR price for that? Are you nuts. I would rot in hell before I pay $45 in interest on a 14day loan. Even the damned credit cards are not THAT bad (yet)
its not about avoiding overdraft fees THAT’S ANOTHER CRIMINAL operation all together.
I think $5 per $100 is a wee high but at least fair. I mean you do NOTHING. you just electronically wire $100 into an account. what can you expenses POSSIBLY be in such an operation. its almost 100% profit!
Banks just “fabricate” the money out of the ether anyway. They do not even have to use there own money they just “make it up” literally.
Makes me sick (granted I would guess most pay day loans are not banks and can not work like banks work but you get the idea)
Makes me sick.
Instead of FIXING over drafts with insane interest rate pay day loans
HOW ABOUT STOPPING THE OVER DRAFT FEES
How about that?
One time I “missed” my mark by $20 (brother owed me $50 promised to deposit I depended on that and got burned)
$560 in fees. you see the BANK charged me $35 returned check and RETURNED the check 3 more bounced because of each successive “Fee” of $35 which off course are all RETROACTIVE.
thats $140
EACH credit card charged me a $35 return check fee $35 late fee and $35 overlimit fee.
thats another $105 PER card.
HOW is this legal? sure you say well don’t make that mistake? OK on principle your right.
but that’s like saying OK since you made one mistake its ok for me to ANAL RAPE YOU every which way I can and then some to COMPOUND what was otherwise a small error.
HOW is it legal to have FEE’s this large?? $35 is insane ! MOST people who over draft do so by a few CENTS and they get nailed $35 fee?
HOW is this legal?
OH and lets not forget the banks can legally embezzle money from you and racketeering is legal if your a bank too.
let me explain. I once goofed (I admit my fault) over drew by $12.50 a power supply was onsale at a closing comp usa. I grabbed it.
the next morning I realized my mistake and there was a $35 fee. OK it sucks erased the savings and then some on the power strip but I goofed my fault.
12 hours later suddenly the balance was -$400 some odd dollars.
they RETROACTIVELY erased the last 8 or 9 days worth of transactions and “reapplied” them in a NEW staggered largest to smallest groupings order to create many FICTIONAL “overdrafts”
I looks it up in blacks legal dictionary that is the very definition of EMBEZZLEMENT
but they abuse a law that says they can POST checks in any order they want (so when they recieved Check #222 before they recieved check #221 they do not have to “hold” #222 until they get #221
they now applied this to CHECK CARD transactions. you know the INSTANTANEOUS transactions that come out of your account in about 1/10th of a second after you make them (I timed it less time than it takes me to press F5)
Then they say well you should have had overdraft protection something that USED to be free and is now a FEE service. thats right an $8 fee PER overdraft to move your OWN MONEY from your savings to your checking and guess what. they USED to move a fixed amount $50 or $100
not anymore. since there charging a FEE now they move the EXACT amount you need so that if you incur multiple charges they can charge for multiple overdrafts.
I LOOKED UP the definition of a “racket” and thats precisely what it is.
You create the conditions that one desires to avoid and then you “create” the solution for them at a fee.
THEY created the problem with the $35 overdraft fee (instead of simply refusing the charge as they had done for over 12 years just fine) and then they FABRICATE a fee based solution.
that is as clear a definition of racketeering as you can get!
all legal. (well no its not legal racketeering is illegal so is embezzlement you and i goto PRISON for it)
Good luck getting the police to charge them for it.
These people are CRIMINAL organizations. ALL OF THEM. crooks through and through.
when I am finally done paying off these credit cards I am not keeping a SINGLE ONE of them I am going to shred every one of them and mail them back.
I have good credit my score is 732 last time I checked. not a late payment in 3+ years yet my interests rates are all 24% or HIGHER some over 30%
HOW is this legal?