Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login

Site Notices
1/22/2020 12:12:56 PM
Arrow Left Previous Page
Page / 2
Posted: 11/23/2012 3:03:38 PM EST
Who the fuck uses them? If I understand correctly, they charge an insane interest rate.
Link Posted: 11/23/2012 3:04:23 PM EST
Correct, one would think a pawn shop would be a better option.
Link Posted: 11/23/2012 3:04:40 PM EST
[Last Edit: 11/23/2012 3:05:09 PM EST by capnrob97]
Idiots use them
Link Posted: 11/23/2012 3:04:42 PM EST
Generally they're a lender of last resort, or nearly so.
Link Posted: 11/23/2012 3:05:06 PM EST

Originally Posted By Aiden:
Who the fuck uses them? If I understand correctly, they charge an insane interest rate.

People who are desperate and/or really bad at math
Link Posted: 11/23/2012 3:09:53 PM EST
IMHO they are legalized loan sharks.
Link Posted: 11/23/2012 3:12:30 PM EST
Link Posted: 11/23/2012 3:12:36 PM EST
Notice what parts of town they show up in.
I talked with a Russian fellow who owns a few... pretty high default rate on the loans, but sky high interest on those that do pay.
Link Posted: 11/23/2012 3:12:50 PM EST

Originally Posted By capnrob97:
Idiots use them

2nd post.



Link Posted: 11/23/2012 3:12:55 PM EST
I'll just say that I see more of them in the ghetto, than in the more "affluent" middle class 'burbs....
Link Posted: 11/23/2012 3:13:41 PM EST
Originally Posted By capnrob97:
Idiots use them


Or people who hit a really bad spot in life and have no other options. I've used several different places a long time ago. One of them wasn't bad and the interest was reasonable. The rest were complete debt holes that are set up as to not let you escape. And no I'm not an idiot sir.
Link Posted: 11/23/2012 3:16:32 PM EST
Originally Posted By PattyOSullivan:
Correct, one would think a pawn shop would be a better option.

A pawn shop is a far better option. The interest rate will be less and the terms of repayment will be over a longer period of time.
The only problem, is that the borrower needs something that has a lot of value. For example: firearms.
Link Posted: 11/23/2012 3:17:02 PM EST
[Last Edit: 11/23/2012 3:23:44 PM EST by Aiden]
Got an e-mail reinforcing the fact that .mil are not allowed to use them. Made me wonder who used them in the first place.
Link Posted: 11/23/2012 3:20:38 PM EST
Originally Posted By OiRogers:
Notice what parts of town they show up in.
I talked with a Russian fellow who owns a few... pretty high default rate on the loans, but sky high interest on those that do pay.


What's his recourse against the defaults?
Link Posted: 11/23/2012 3:21:49 PM EST

Originally Posted By WinstonSmith:
Originally Posted By OiRogers:
Notice what parts of town they show up in.
I talked with a Russian fellow who owns a few... pretty high default rate on the loans, but sky high interest on those that do pay.


What's his recourse against the defaults?

.22llr to a kneecap?
Link Posted: 11/23/2012 3:23:02 PM EST
Link Posted: 11/23/2012 3:23:12 PM EST
My cousin's husband worked in one for a while.

He said if someone defaulted they did NOTHING except ban them from getting another loan.

He hated working there, said people would try and get loans from several places on the same paycheck.
Link Posted: 11/23/2012 3:25:45 PM EST
Only the mathematically challenged and crooks use them.
Link Posted: 11/23/2012 3:48:36 PM EST
[Last Edit: 11/23/2012 3:49:28 PM EST by OiRogers]
Originally Posted By WinstonSmith:
Originally Posted By OiRogers:
Notice what parts of town they show up in.
I talked with a Russian fellow who owns a few... pretty high default rate on the loans, but sky high interest on those that do pay.


What's his recourse against the defaults?


His? Probably physical violence. To be more of a stereotypical Russian Mob type he would have needed a facial scar... he had the Kangol hat, track suit, jewelry...

In Ohio it is considered a civil matter unless there are other factors showing the criminal intent to defraud.
Link Posted: 11/23/2012 3:54:32 PM EST
Originally Posted By Palm:
Only the mathematically challenged and crooks use them.


I used one once, had to carry us over for two weeks. It was our only option at that point. Put down your brush.
Link Posted: 11/23/2012 4:00:55 PM EST
They serve a purpose I guess.

Definitely loan sharks, to a certain degree.
Link Posted: 11/23/2012 4:03:46 PM EST
[Last Edit: 11/23/2012 4:06:42 PM EST by pcsutton]

Originally Posted By Aiden:
Who the fuck uses them? If I understand correctly, they charge an insane interest rate.


FSA

There was a time in this country that interest over 20% was Usery and a felony....now some credit cards have higher interest rates.
Link Posted: 11/23/2012 4:10:49 PM EST
Originally Posted By Aiden:
Who the fuck uses them? If I understand correctly, they charge an insane interest rate.


It's not interest, it's a service charge.

Link Posted: 11/23/2012 4:17:22 PM EST
Legalized loan sharking, only no broken bones.
Link Posted: 11/23/2012 4:26:08 PM EST
Around here, the car title loan joints seem to be thriving.
Link Posted: 11/23/2012 4:37:32 PM EST
Here's the rate schedule from a company that is advertising on TV a lot lately. They say that the money is expensive, but not as bad as "those payday loan places"! If paying $62,000 on a $10,000 loan is less expensive, WTF do the payday loan places charge?!?!



TriumphRider
Link Posted: 11/23/2012 4:42:41 PM EST
Obama voters need cash
Link Posted: 11/23/2012 4:45:28 PM EST
They're for the little guys (like enlisted personnel).

For the gubmint, it's called the Fed Res.
Link Posted: 11/23/2012 4:48:20 PM EST
[Last Edit: 11/23/2012 4:48:57 PM EST by raven]
I have had a kind of experiment dream I have wanted to do is get a paycheck loan and use it all on pull tabs and see if I come out ahead.
Link Posted: 11/23/2012 4:56:24 PM EST
Originally Posted By raven:
I have had a kind of experiment dream I have wanted to do is get a paycheck loan and use it all on pull tabs and see if I come out ahead.


English?
Link Posted: 11/23/2012 5:00:51 PM EST
I use them to judge an area. If there are more payday loan places than banks, the neighborhood is usually ghetto or soon will be. Don't see any in the affluent neighborhoods, but usually one every block or so in the ghetto.
Link Posted: 11/23/2012 5:01:11 PM EST

Originally Posted By Cavalry_Scout:
Originally Posted By raven:
I have had a kind of experiment dream I have wanted to do is get a paycheck loan and use it all on pull tabs and see if I come out ahead.


English?

For fun, I wanted to do something incredibly dumb for the hell of it. I wanted to take out a payday loan at outrageous interest rates and blow it all gambling on a random game stacked against me, and see if I came out ahead.
Link Posted: 11/23/2012 5:18:14 PM EST
Friend had one.

They are linked to others via computer network so if you default, you will never get another loan. And they knew if you had $200 out with the guy down the street, so they wouldnt give you another 200. And the folks that use them and depend on them know it.

At the time in TN, 60K 'on the street' generated about 10K per month.


Link Posted: 11/23/2012 5:21:11 PM EST
FSA types generally. People who can't figure out that 1000% interest today is worse than saving a week to spend $50 on the latest honey boo boo child DVD doesn't take sense.
Link Posted: 11/23/2012 5:24:15 PM EST
People with addictions
Link Posted: 11/23/2012 5:31:58 PM EST
Since people like Montel Williams push it - it's not predatory lending....
Link Posted: 11/23/2012 5:32:01 PM EST
[Last Edit: 11/23/2012 5:32:26 PM EST by Notcalifornialegal]
People who "don't trust banks". But high default rate = high interest so I can't really knock them for it.
Link Posted: 11/23/2012 5:44:03 PM EST
Originally Posted By Strudle54:
Since people like Montel Williams push it - it's not predatory lending....


If customers have a choice of either taking the loan or not taking it - How is it "predatory", in any sense of the word?
Link Posted: 11/23/2012 5:51:59 PM EST
Originally Posted By Skibane:
Originally Posted By Strudle54:
Since people like Montel Williams push it - it's not predatory lending....


If customers have a choice of either taking the loan or not taking it - How is it "predatory", in any sense of the word?


In the sense of 'we have to protect people from making bad decisions'. It's a progressive/authoritarian social-justice kind of thing.
Link Posted: 11/23/2012 5:55:42 PM EST
I had a paycheck bounce and had a bunch of bills in the mail with now worthless checks.

I borrowed 400 to cover the checks and it was cheaper than the bounced check fees. Once mailed the checks were going to hit my account.

I don't work for that guy any more and I sold some stuff to cover the payday loan with in the 3 day grace period. I paid no interest at all.
Link Posted: 11/23/2012 5:56:01 PM EST
Originally Posted By JaxsonRaine:
Originally Posted By Skibane:
Originally Posted By Strudle54:
Since people like Montel Williams push it - it's not predatory lending....


If customers have a choice of either taking the loan or not taking it - How is it "predatory", in any sense of the word?


In the sense of 'we have to protect people from making bad decisions'. It's a progressive/authoritarian social-justice kind of thing.


Dude, I think it should be legal for them to charge whatever they can get. It's only illegal for military, which leads me to believe that they were once a large percentage of their business.
Link Posted: 11/23/2012 6:07:16 PM EST
Originally Posted By Aiden:
Originally Posted By JaxsonRaine:
Originally Posted By Skibane:
Originally Posted By Strudle54:
Since people like Montel Williams push it - it's not predatory lending....


If customers have a choice of either taking the loan or not taking it - How is it "predatory", in any sense of the word?


In the sense of 'we have to protect people from making bad decisions'. It's a progressive/authoritarian social-justice kind of thing.


Dude, I think it should be legal for them to charge whatever they can get. It's only illegal for military, which leads me to believe that they were once a large percentage of their business.


Probably. I remember signing a line that said I wasn't military.

Free market, lol.
Link Posted: 11/23/2012 6:19:35 PM EST
Originally Posted By Aiden:
Who the fuck uses them? If I understand correctly, they charge an insane interest rate.


The same dumb fucks that use pawnshops
Link Posted: 11/23/2012 6:58:40 PM EST
I used one once. The money in my accounts was siezed due to a tax issue. It was my fault, I fucked up. And for a $75 fee, I was able to keep $600 in my pocket while I resolved the issue.

The idiots are the ones who use them to buy beer or go to the casino....
Link Posted: 11/23/2012 7:10:06 PM EST
Mostly the same blue gums that voted for Osama.
Link Posted: 11/23/2012 7:11:40 PM EST
Originally Posted By capnrob97:
Idiots use them


This!
Link Posted: 11/23/2012 7:13:36 PM EST
Originally Posted By Aiden:
Who the fuck uses them? If I understand correctly, they charge an insane interest rate.


so, you'asking... why are dumb people dumb?
Link Posted: 11/23/2012 7:14:50 PM EST
I know a couple of guys who starting writing software specifically for this industry, amazingly, nobody had done it up to that point. Major dollars involved.
Link Posted: 11/23/2012 7:17:15 PM EST
Lots of illegals cash their checks there.

Link Posted: 11/23/2012 7:23:31 PM EST
I use to work for a large publicly traded one in legal.

Overall default rates of 30% are not uncommon. So, if someone takes a $500 loan with a fee of $75 and they default, then you have to make up your principal and lost fees through other loans. It can be tough at times.

As to legal recourse, it depends completely on the jurisdiction. For example in Missouri a corporation can only go to small claims court 12 times annually. Basically, there is not a lot some companies can do. Few, if any, do credit reporting. Basically, if after 90 days or so of unsuccessful collection attempts, they will go to regular collections, or get sold to debt buyers for pennies on the dollar.

In states where small claims can be used, then they get used. The problem is actually collecting on a judgement, but if you got a judgement that will show up on the credit report, maybe. It can also be used to encumber real property, depending on the jurisdiction.

Most states now have databases to limit people to one loan at a time, though I don't believe Missouri does. A couple of states do require credit reporting, but not a lot comply and if they do it is not with the big 3.

People use them because banks will not loan small amounts. Say you need your car fixed and don't want to ask a friend or family, people come get payday loans.

I have seen some crazy stuff with check cashing. People will pay huge fees to cash a check instead of using a bank. I know of one guy who cashed a life insurance check for over $100k, it cost him about $13k in fees, instead of saving that by going to a bank.
Link Posted: 11/23/2012 7:24:11 PM EST

Originally Posted By OiRogers:
Notice what parts of town they show up in.
I talked with a Russian fellow who owns a few... pretty high default rate on the loans, but sky high interest on those that do pay.

I have friends in the business. The default rate for them is typically between 15 and 20%. They try to get as much proof as possible that the customer will be able to pay the money back (like six months worth of pay stubs), but it doesn't matter if the person loses his job right after that. And that happens regularly. Those who pay are picking up the tab for those who don't.
Arrow Left Previous Page
Page / 2
Top Top