Payday loan lender interest rate just outrageous
By clorissa123
@clorissa123 (4926)
United States
October 6, 2009 3:57pm CST
Doesn't the federal government come up some sort of regulation to control the payday loan lender interest rate? From what I heard, and what I saw, the interest rate the charged on their customers just out of thinking. Maybe 50% to 100%, etc..... I may exaggerated it, but you just couldn't handle those loan from payday loan lenders. No wonder they are everywhere, and they are so prosperous at the moment. I think that our government should come up a regulation to control it. It seems people never be able to save their money from them.
1 person likes this
6 responses
@missliss08 (766)
• United States
6 Oct 09
Plus they prey on people who they know probably will have a hard time paying it back. Yes, you could not go to them, but it is usually desperate people who can not get a loan anywhere else. I think the government should regulate this, it is kind of like loan sharking, if you ask me.
@ParaTed2k (22940)
• Sheboygan, Wisconsin
7 Oct 09
WAH, WAH! Mommy and Daddy government, kiss the booboos all better!
@spalladino (17891)
• United States
7 Oct 09
How do they prey on people? They don't do anything to create the situations that come up in people's lives and it's not their fault that the majority of their customers don't have credit cards. They're called "payday loans" for a reason and they do provide a service to people who have poor or no credit.
Let me ask you this. Should the rent-to-own stores that let folks pay weekly/bi-weekly/monthly for furniture and appliances also be regulated? Their interest rates are high as well.
@clorissa123 (4926)
• United States
7 Oct 09
I totally agree with you, and partially agreed with the two mylotters up there before you. There were people who are in desperate situations. But not exclude some lazy bums out there too. So, it would be fair to regulate the way they prey on people.
@spalladino (17891)
• United States
6 Oct 09
Yes, these companies have very high interest rates but, as long as they state what their rates are clearly, they are not breaking any laws. Typically, these businesses make short term loans to people with poor credit who cannot quality for credit cards, which have a lower rate. It's not very fair but it is legal.
@bobmnu (8157)
• United States
7 Oct 09
Several people have stated that they have been saved by these Pay Day Loans. The car breaks down and they take the money to pay the Credit Card to pay for the car repairs. To avoid the late charges of the credit card ($35.00) they write a check to the pay day loan and pay $20.00 interest until they get paid.
Talk about loan Sharks look at the IRS. I filed my income tax and three years later I received a notice that money I claimed as Capital Gains they said I should have claimed as regular income and I owed them $1100.00 in back taxes and just over $900 in interest and late fees. They charged me interest on the taxes, late fees and incurred interest from the date of the estimated tax was due. The government charges 11% interest from the first of the tax year, yet keep my money for a year and pay me no interest. Had I known that I needed to pay the tax at the time I could have gotten a Pay Day Loan for the tax and paid the loan company about $50 (interest would be reduced with each principal payment) a week interest until the loan was paid off.
Let me decide when, where and how I borrow money.
@laglen (19759)
• United States
23 Oct 09
Here is some info on that -
http://digital.library.unt.edu/govdocs/crs/permalink/meta-crs-9204:1
@ParaTed2k (22940)
• Sheboygan, Wisconsin
6 Oct 09
If you think they are outrageous (and I agree, they are) don't go to them for loans. If, for some strange reason, you do feel the need to go to them for a loan, pay it all off when you said you would.
The only people who get stuck with those outrageous interest rates are the ones who wrote a check for the loan, then didn't have the money they promised to pay at "payday".
Why should the government come to the rescue of people who lied to get themselves in deeper financial trouble?
@clorissa123 (4926)
• United States
7 Oct 09
well, but don't you think those payday loan are "shark". What if you are in an emergency situation, where the bank couldn't grant you a loan. The only place you can get is from payday loan lenders. For instance, your love is in emergency room, and you need a big sum of money to rescue your love one. Would you do that? Or you rather lie to them?
@ParaTed2k (22940)
• Sheboygan, Wisconsin
7 Oct 09
If I did feel the need to go to one of those payday loan places, I wouldn't promise to pay the loan by the end of the month, then reneg on that promise.
When people get those loans, they have to write a check for the amount of the loan plus the regular fee. The ONLY way they have to pay the outrageous interest rate is if they don't deposit enough money in the bank to cover the check before the due date.
The ONLY people stuck paying the interest are those who LIED about paying back the loan on time.
Yes, I understand that people often feel that there are no other alternatives to the payday loan place, however, if they end up paying the high interest rate it is THEIR own fault.
@rjl1989 (190)
•
18 Oct 09
No one is forcing people to take out the loans, the interest rates are stated clearly enough. How do you think people managed in emergency situations before payday loans??
Everyone should have some form of savings for emergency situations. Secondly if you have a good credit history you should be able to use a credit card or bank overdraft. Thirdly there's always friends and family for emergencies.
And on another note, i live in the UK, we have free healthcare for everyone so no one has to worry about paying for any healthcare they need. It even works out cheaper than the US system per person.
