Thursday, August 11, 2011

payday loans

Our of curiosity and financial desperation, I've done a little research into the "payday loan" industry.

Here's a little fine print for one company, who claims to make loans for much much less!! than typical payday loan companies. Let's explore their generosity:
  • First time XXX XXXX Loans customers typically qualify for an installment loan of $250 to $800 with an APR of 360%, or 40% less than the average 602% APR for a payday loan. For example, a $600 loan from XXX XXX Loans at 359.01% APR would require 12 bi-weekly installment payments of $105.11. After the 12th successful payment, your loan would be paid in full. An average payday loan of $600 with an APR of 602% and a fourteen (14) day term would require one payment of $738.54.
  • Average payday loan pricing is based on Texas-originated loans from CashNet USA (664%), ChecknGo (661%) and MyCashNow (485%) as of February 22, 2011.
Talk about predatory lending — and they are bragging about how nice they are for only ripping people off with 360% interest. Say it again — three hundred and sixty percent interest. That's the good rate.

Anyone who is teaching their children that people are "basically good" is doing them a serious disservice. My parents taught me this. My schools and churches taught me this. As a consequence, I waste a lot of time and emotional energy being shocked when it is proven to be, time and time again, wrong.

People are basically scum.

 Satire! Don't hurt me!

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