Skip to content
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Forbes)   Forbes celebrates the return of the good old days of 100% interest on payday loans. It's good for customers?   (forbes.com) divider line
    More: Unlikely, Debt, Loan, Consumer Financial Protection Bureau, payday lending rule, Bureau Director Kathy Kraninger, old rule, Sen. Elizabeth Warren, Good riddance  
•       •       •

747 clicks; posted to Business » on 09 Jul 2020 at 5:48 PM (20 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



28 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2020-07-09 6:19:11 PM  
They're hoping to seize cars and homes and shiat and profit.
 
2020-07-09 6:23:00 PM  
100% interest is an improvement over 1,000% interest.

It's still terrible, though.
 
2020-07-09 6:27:59 PM  
Payday loans  AND third party lenders should be illegal.
They specifically prey on the poor or poor credit individuals.

116% intrest ?? Well shiat. SIGN ME UP !

Fark user imageView Full Size


Companies shouldn't be allowed to charge more intrest than banks pay interest to random joe shmoe savings account.
.5 - 2% intrest.
You and 29% Mastercard.  Ok well you re paying the customer 29% if they have a credit on their account.
 
2020-07-09 6:30:21 PM  

TotallyRealNotFake: Companies shouldn't be allowed to charge more intrest than banks pay interest to random joe shmoe savings account.
.5 - 2% intrest.
You and 29% Mastercard.  Ok well you re paying the customer 29% if they have a credit on their account.


Just out of curiosity, do you believe that credit would exist at all of you were to put this into law?
 
2020-07-09 6:32:07 PM  
Well, the one thing I learned from this article is that Norbert Michel is a real piece of shiat.  Fark that guy, payday lenders are parasites that prey on the least fortunate in society.
 
2020-07-09 6:38:07 PM  

TotallyRealNotFake: Payday loans  AND third party lenders should be illegal.
They specifically prey on the poor or poor credit individuals.

116% intrest ?? Well shiat. SIGN ME UP !

[Fark user image image 425x318]

Companies shouldn't be allowed to charge more intrest than banks pay interest to random joe shmoe savings account.
.5 - 2% intrest.
You and 29% Mastercard.  Ok well you re paying the customer 29% if they have a credit on their account.


Do you understand how banks work and how they earn revenue?

I'm against Payday lenders, but if your policy was expanded to other industries, it would ban selling an item for more than the company bought it for.
 
2020-07-09 6:40:27 PM  
Well, the moral question here is, if you have no or horrible credit, and, um, "Need Cash Now" as it were, should you be forced to go to the mob, or should you be allowed to go to a regulated, licensed, normal business?

That's what it really boils down to.  People using these services don't have access to normal loans, probably because they haven't paid back other ones in the past.  So they are high risk, and therefore average costs to the lender are also high.

I think if the fees and interest rate on these things are plainly stated, they should be legal.
 
2020-07-09 6:48:37 PM  
Even regular banks are getting in on the payday loan action. US Bank sent me an email about a loan that they offered to help me cover unexpected expenses. When you read the small print the interest rate is usurious:

Fark user image
 
2020-07-09 7:10:28 PM  
Payday loans are a tax on the fiscally illiterate.  Much like lotteries.
 
2020-07-09 7:23:02 PM  

Priapetic: Payday loans are a tax on the fiscally illiterate.  Much like lotteries.


Know what isn't? Savings linked lottery. I wish more entities did it. You put the money in a CD and your interest is combined with others to do a lower amount for lottery.
 
2020-07-09 7:41:49 PM  

Mad_Radhu: Even regular banks are getting in on the payday loan action. US Bank sent me an email about a loan that they offered to help me cover unexpected expenses. When you read the small print the interest rate is usurious:

[Fark user image 425x76]


You're paying a $48 fee for a three month loan. How much do you think it costs the bank just to pay a loan officer to write out and process the paperwork?

Pretend it was 12%. The interest on a $400 12% loan for three months is twelve bucks. Would you lend four hundred bucks out to any rando off the street in the hopes he'll come back three months later to give you $412? Is that twelve dollar profit worthwhile for you? Would that be worth it for anyone?

These tiny short term loans aren't at high rates for no reason. It's just a crappy business model, by nature.
 
2020-07-09 7:53:49 PM  
Loan sharking is now perfectly legal, What is the next thing the mafia used to do that will be legalized? Hit men?
 
2020-07-09 7:55:26 PM  
Payday loan is $48 for ~$400

Bank insufficient funds fee is (IIRC) $25 per check

So if you are making 2+ checks and need that $400, the payday loan place is a better deal

Best deal is creating and maintaining a support network so you can borrow from and pay back your neighbor (with a little interest) instead of the payday loan or bank
 
2020-07-09 8:11:02 PM  

Priapetic: Well, the one thing I learned from this article is that Norbert Michel is a real piece of shiat.  Fark that guy, payday lenders are parasites that prey on the least fortunate in society.


this

Norbert Michel is real piece of garbage. His kids will be so embarrassed of him when they grow up and see this article. Jesus fark, I'm glad I am not in his family.
 
2020-07-09 8:24:48 PM  
Bank Rip Off According to Louis CK
Youtube IwZ5468-QVE
 
2020-07-09 8:57:03 PM  

anfrind: 100% interest is an improvement over 1,000% interest.

It's still terrible, though.


With this unemployment I think I'd be doubling interest
 
2020-07-09 9:07:16 PM  
Forbes has gone full trailer park.
The other day it was an incisive piece about Bipolar Kanye.
 
2020-07-09 9:13:35 PM  

uncoveror: Loan sharking is now perfectly legal, What is the next thing the mafia used to do that will be legalized? Hit men?


That's why this stuff is legal, to prevent loan sharking. And it is better lose your car than to lose your kneecap.

My suggestion is that the USPS sets up community banks that makes small loans at reasonable rates. It would provide free checking, which can help debtors avoid extra fees for certain services.
 
2020-07-09 9:32:30 PM  

AliceBToklasLives: uncoveror: Loan sharking is now perfectly legal, What is the next thing the mafia used to do that will be legalized? Hit men?

That's why this stuff is legal, to prevent loan sharking. And it is better lose your car than to lose your kneecap.

My suggestion is that the USPS sets up community banks that makes small loans at reasonable rates. It would provide free checking, which can help debtors avoid extra fees for certain services.


They had that in the past
 
2020-07-09 9:49:13 PM  
Paying 8 bucks to borrow a hundred bucks for a month is not unreasonable
 
2020-07-09 9:49:53 PM  
Dirty Money on NETFLIX as a show on Scot Tucker. Pretty interesting.
 
2020-07-09 10:07:09 PM  

c152atn67: TotallyRealNotFake: Payday loans  AND third party lenders should be illegal.
They specifically prey on the poor or poor credit individuals.

116% intrest ?? Well shiat. SIGN ME UP !

[Fark user image image 425x318]

Companies shouldn't be allowed to charge more intrest than banks pay interest to random joe shmoe savings account.
.5 - 2% intrest.
You and 29% Mastercard.  Ok well you re paying the customer 29% if they have a credit on their account.

Do you understand how banks work and how they earn revenue?

I'm against Payday lenders, but if your policy was expanded to other industries, it would ban selling an item for more than the company bought it for.


Fark user imageView Full Size


I understand how Banks make their profits.
Mine can easily drop intrest rates by half and still make a metric shiat ton of cash.
With enough left over to bribe the gov. even.
 
2020-07-09 10:31:21 PM  

hoodiowithtudio: Priapetic: Payday loans are a tax on the fiscally illiterate.  Much like lotteries.

Know what isn't? Savings linked lottery. I wish more entities did it. You put the money in a CD and your interest is combined with others to do a lower amount for lottery.


They're illegal in most of the US (prize linked savings accounts)...state lotteries won't tolerate anyone getting in on their racket....regardless of how successful they are at helping the previously unbanked or financially *misguided
 
2020-07-09 10:49:53 PM  

zepillin: Paying 8 bucks to borrow a hundred bucks for a month is not unreasonable


Except that NO PAYDAY LOAN BUSINESS IN EXISTENCE charges a mere 8%.
 
2020-07-09 10:53:13 PM  

AAAAGGGGHHHH: Except that NO PAYDAY LOAN BUSINESS IN EXISTENCE charges a mere 8%.


8% per month is 151% annualized.
 
2020-07-09 10:53:43 PM  

AAAAGGGGHHHH: zepillin: Paying 8 bucks to borrow a hundred bucks for a month is not unreasonable

Except that NO PAYDAY LOAN BUSINESS IN EXISTENCE charges a mere 8%.


That makes no sense

I was told there should be no math Because most aren't very good at
 
2020-07-09 11:55:02 PM  
And then when you tell them you need the payday loan to buy more TotalFark, they don't even try to stop you.
 
2020-07-10 8:26:29 AM  

Mad_Radhu: Even regular banks are getting in on the payday loan action. US Bank sent me an email about a loan that they offered to help me cover unexpected expenses. When you read the small print the interest rate is usurious: (image: $400 loan, $448 payback over three months, 78% APR)


Looking at APR doesn't make a lot of sense for short term loans.

They are offering to loan you $400 and you pay back $448; that's a 12 percent fee for a three month loan. High, but not beyond reason. If I loan you a hundred bucks and ask you to pay me back $105 next week, that's a three digit APR.
 
Displayed 28 of 28 comments

View Voting Results: Smartest and Funniest

This thread is closed to new comments.

Continue Farking





On Twitter



  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.