Author Topic: Ad on the radio  (Read 1254 times)

cloudsail

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Ad on the radio
« on: May 27, 2015, 01:39:28 PM »
Driving to the train this morning I heard an ad on the radio for a loan company that emphasized their LOW rate of 11.39% APR!!!

If that is really considered low for these kinds of loans (payday, etc.), I feel really really sorry for people who need them.

As a side note, for the longest time I didn't understand the whole concept of payday loans and check cashing.  They didn't exist in the country where I was born and spent a large part of my childhood in, so when I saw them everywhere in North America I was very puzzled as to their purpose.  I even remember asking my husband why people would pay to have their check cashed instead of just putting it into their bank account.  He explained that it can take a few days for the check to clear in the bank and some people need the money right away.

Travis

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Re: Ad on the radio
« Reply #1 on: May 27, 2015, 01:52:26 PM »
If that rate is for a check cashing/payday loan business it is a steal.  Those loan rates are typically in the 30% range and that's in states that put a cap on them.  In unregulated markets those rates end up with an APR of several hundred percent.

cloudsail

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Re: Ad on the radio
« Reply #2 on: May 27, 2015, 02:04:14 PM »
If that rate is for a check cashing/payday loan business it is a steal.  Those loan rates are typically in the 30% range and that's in states that put a cap on them.  In unregulated markets those rates end up with an APR of several hundred percent.

Wow, I had no idea.  I can't believe these kinds of businesses are legal.  Seems very profitable though..... hmmm........... sadly I don't think I could live with myself making money this way.

forummm

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Re: Ad on the radio
« Reply #3 on: May 27, 2015, 02:37:15 PM »
Payday and title loans are frequently in the 400% interest range when you count their fees too.