Payday Loan? My Friend is an Idiot. A Public Service Announcement From Nitty! (701 hits)
Category: NoneRating: 1.5 on 24 reviews (Rate this item) (V)
Submitted by nitty (View user info) at 2007-03-22 15:37:28 EDT
My best friend (aside from Shlongy) has never been good with money.
Case in point: http://www.ubersite.com/m/68587 (old school nitty!)
Due to business, travel, families, etc...he and I have not been in much contact the last few months. We still talk about once a week with promises to get together, go for drinks, blah blah blah and I haven't seen him since before Christmas. Sure, as soon as it warms up he and I will be golfing twice a week, but for now we're playing phone tag.
I always thought he was a pretty smart guy. Until last night.
I was on the way home from getting some takeout and a few beers and decided to give him a call. Where was he? On the way home from making a payment at some Payday Loan office in some shithole strip mall.
I wanted to call him a fucking moron, but didn't. He didn't need to hear that. He knew. Apparently he needed a few bucks for an unexpected expenese - he wrote the filthy bastards a postdated check for $250, they gave him $200, and he had 2 weeks.
Anyone.
Anyone who uses a payday loan service is a moron.
ANYONE.
Let's do the math, shall we?
He gave them $50 for a loan of $200 - 25% interest for a period of 2 week. Extrapolate that over the course of a year - and he just paid 650% yearly interest on that 200 bucks.
The Payday Loan industry is HUGE. They are also the scum of the banking world and pretty much a leech on society.
Who do they target? The poor. The underpaid. The struggling. Do to a wealthy neighborhood, and you won't see them. Anywhere.
Go to a poor neighborhood, and odds are there is at least one in every shopping mall.
Instant Cash!
Cash Today!
No Credit Check!
Fuck off.
I was in Fayetville, NC, on business a couple of weeks ago. Military town. Fort Bragg. Going down the main stretch of road near the base I was amazed at how many of these Check Into Cash ripoffs there were. I didn't count, but I bet there were a dozen. Now they're preying on the military - people who don't earn nearly enough for the work they do and for the most part are 18-20 year old kids fresh out of mommy and daddy's umbrella.
There is federal legislation regarding the amount of interest a credit card company can charge.
There is no legislation regarding Payday Loans.
Why? If you're dumb enough to do this, you should know how they operate.
A Payday Loan service is NOT a lending service. Sure, it is. We know it is. But not in the business sense. They've found a loophole to where their services fall into the same industry bracket as a Pawn Shop. You're not getting a loan. You're pawning a check to these theives and they're making a killing.
There will never be legislation - at least not at the federal level. Sure there are some small operators that run these things, but most are backed by MAJOR financial institutions. Names like Bank of America. Wells Fargo. Washington Mutual. Names that have enough money and enough lobbying power to keep these doors open regardless of public harm.
But you'll never see the big names at the stores. They know one day the public will get wise to this, and associating themselves with this industry will leave them with such a black eye that their public image could never recover.
If you've done it in the past, I'd like to hear about it.
If you've never done it, I hope you never do.
Borrow the money from a family member. Sell something. Roll your pennies. Whatever it takes, but stay away from these bottom-feeders that target those that think they have no other alternative. There are other alternatives. Use them.
-nitty
User Reviews
Submitted by kuroneko_sama (user info) at 2007-03-24 00:04:16 EDT (#)
Ranking: 0
its like those "pre approved" loans and shit for cars and cards and stuff.... they have like 59% interest rate... friend of mine got a car, that was last owned by a rentacar company sold as a regular used vehicle at 27% interest
what a retard hes paying $450 a month on a vehicle thats only worth like 1/3rd of the remaining loan
Submitted by CaptainThorns (user info) at 2007-03-23 09:02:18 EDT (#)
Ranking: 2
Submitted by FlakMonkey (user info) at 2007-03-22 15:58:41 EDT (#)
Ranking: 2
illinois passed some payday loan reform a couple years back to cap their interest and the damages they could colect if they decide to litigate. i worked on it, actually.
i am a true champion for humankind.
vote for me for president in 2012.
zebra will be my running mate.
----------------------------------
Scourge, you of all people should know that Zebra (cough cough APOLLO cough cough) isn't eligible to be your running mate since he isn't a natural-born US citizen.
But I'll vote for YOU anyway. :)
Submitted by CaptainThorns (user info) at 2007-03-23 08:59:46 EDT (#)
Ranking: 2
Submitted by Shlongy (user info) at 2007-03-23 08:03:34 EDT (#)
Ranking: 2
You are absolutely correct that these joints prey on the people that can LEAST afford to be preyed upon financially.
Submitted by BLITZKREIG_BOB (user info) at 2007-03-23 08:22:38 EDT (#)
Ranking: 2
They'll never be regulated because the people who do the regulating aren't even aware that the places exist, because they're not hard up for money.
Submitted by Shlongy (user info) at 2007-03-23 08:03:34 EDT (#)
Ranking: 2
You are absolutely correct that these joints prey on the people that can LEAST afford to be preyed upon financially.
And the servicemen? Worst infractors.
Go up to Beaufort, next to Parris Island, and there's one of these "lenders" every 100 feet.
Submitted by rad1101 (user info) at 2007-03-23 07:56:48 EDT (#)
Ranking: 0
thanks for the advice.
Submitted by sicosemen (user info) at 2007-03-23 07:25:07 EDT (#)
Ranking: 1
Agreed, but not that funny.
Submitted by paul_anthony (user info) at 2007-03-23 01:29:51 EDT (#)
Ranking: 2
total fool
Submitted by forthewin (user info) at 2007-03-23 01:22:09 EDT (#)
Ranking: 2
Submitted by Adamdidit2u (user info) at 2007-03-22 16:32:46 EDT (#)
Ranking: 2
a fool and his money are soon parted
Submitted by Zoidberg (user info) at 2007-03-22 23:52:04 EDT (#)
Ranking: 0
*shrug* it's usury, nothing new
you want shameful tactics? go after the NSF funds banks charge when you overdraft
Submitted by nitty34 (user info) at 2007-03-22 17:41:14 EDT (#)
Ranking: -2
Niggers love me.
Submitted by DanJaines (user info) at 2007-03-22 17:39:44 EDT (#)
Ranking: 0
I'm an altar as much as youve tasted dong. Stop being rediclaus.
Submitted by nitty34 (user info) at 2007-03-22 17:30:57 EDT (#)
Ranking: -2
Alters love me.
Submitted by DanJaines (user info) at 2007-03-22 17:28:36 EDT (#)
Ranking: -1
Up coming pubic surface allotments from Mr. State the Oblivious (niter.)
<>Falling down Can Hurt
<>Do not Drive Your Car in Rehearse at Excessive Speeds on the Freeway
<>Nifty Says Don't Drink Bleach
<>Your Auto Machinist May be Full of Shit When You Bring Your Car in for a Tune-up and get billed for a whole new Transmission
<>Do not put your genitals in the mouths of wild animals. Not Even just for Laughs.
This is not a total -2 because of the cute girl who looks like Jaylena does when her hair gets all frizzy from humidity.
Submitted by Orgasmatron (user info) at 2007-03-22 16:42:30 EDT (#)
Ranking: 2
Don't be a Tard. Damn straight.
Be somebody. Workout.
I used to know a guy who typically overdrew his account twice a month. He'd come into money, pay his bills, scratch together enough to get himself in the black and then he'd go pull some wreckless bullshit like buying a used Dreamcast and some games or dropping $200 on jeans. I have no patience for idiots like this. I debated stuffing him into a woodchipper for his own good, but then decided against it. I didn't want to get blood and pulp all over my boots.
Submitted by Adamdidit2u (user info) at 2007-03-22 16:32:46 EDT (#)
Ranking: 2
a fool and his money are soon parted
Submitted by QueenAshlee (user info) at 2007-03-22 16:32:34 EDT (#)
Ranking: 2
Right before we split, my ex husband, who is FANTASTIC at making horrible decisions, started taking out payday advances the reason for which I can't remember at the moment... something stupid, I'm sure. They're definitely vicious.. Once he took the first one, he had to keep taking them out every week to cover the bills that were left when he paid off the previous loan plus interest... all told I think he ended up giving these guys like $1000 in a damn short span of time, and that was just BEFORE I left... as far as I know he was still caught in the cycle for some time after I left, and there's a strong possibility that he just closed his bank account, quit his job, and didn't pay them... Which I hate to say I wouldn't find totally unmjustified on his part, despite the fact that he's really just a deadbeat, as opposed to not paying them because they're ripoff artists.
Submitted by sideshow (user info) at 2007-03-22 16:08:08 EDT (#)
Ranking: 2
Yeah, I've seen some of my friends pawn stuff off to get some quick cash...at the pawn shop, the interest was 30% per month. Which is insane! I've never had to use one of those payday loans or even a pawn shop, but that is because when I had no money, I ate rice for supper, didn't drink, and didn't go out. Of course that sucks, but it sucks less than paying crazy interest....
I'm smart enough to know what a rip off they are, but yet they have payday loans near many liquor stores in the older (read: cheaper / poorer) neighbourhoods around town.
Good on you for putting out the public service announcement.
I once took a loan from a buddy at 5% interest per week, but that was because I was buying a large amount of drugs and I was selling them off, so I knew I could pay him back in one week. But still, that was 260%/year...Now I have a line of credit, so 8.5%/year is the most I'll ever pay for a loan.
Submitted by St_Jimmy (user info) at 2007-03-22 16:06:43 EDT (#)
Ranking: 2
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I feel that this kind of thing falls into the category of "you can't save people from themselves".
I completely understand that not everyone fully understands such concepts like "interest rates" and "compounding" and "usury". However, common sense tells you, if something seems to good to be true, than your a genius who has figured out a loophole and you better get while the gettin's good! Or maybe it's not really that good and some clever person is trying to F you in the A. How you interpret a given situation is kind of like economic natural selection.
Or not, what the fuck do I know, I have 0 debt.
Submitted by FlakMonkey (user info) at 2007-03-22 15:58:41 EDT (#)
Ranking: 2
i have a few friends who have used them. these same friends have sold plasma, pawned possessions, etc.
it's fucking nasty to watch it happen. it turns into a huge circle, just like juggling credit carsda against each other.
me? i was poor while i was in school and just starting out, but my route was to give up any extraneous bullshit - cable, smokes, booze, phone, etc, - and keep my fucking head down until i was in a better place.
some of those friends are still stuck in a fucking loop.
illinois passed some payday loan reform a couple years back to cap their interest and the damages they could colect if they decide to litigate. i worked on it, actually.
i am a true champion for humankind.
vote for me for president in 2012.
zebra will be my running mate.
Submitted by The_taste_of_Monkeys (user info) at 2007-03-22 15:57:16 EDT (#)
Ranking: 2
You find these places all over Glasgow as well (Which just shows you the kind of place Glasgow is).
Fucking parasites.
Submitted by Comfortably_Numb (user info) at 2007-03-22 15:53:19 EDT (#)
Ranking: 2
You know you live in a shitty poor-ass neighborhood when there is a payday loans or check into cash on every corner, right next to the liquor stores and dollar generals.
Why do people find it so hard to save a few bucks? If you don't have a couple hundred bucks saved, you are in pretty bad shape.
Submitted by Alcoholocaust (user info) at 2007-03-22 15:43:09 EDT (#)
Ranking: 2
they are basically legalized loansharks, but they break credit instead of legs.
Submitted by DesolateMisanthrope (user info) at 2007-03-22 15:41:20 EDT (#)
Ranking: -2
you got it wrong idiot, all financial institutions are fucked up and ass deep in corruption. this is not exclusive to the "payday loan"