Another sign of an economic apocalypse - New England Patriots Forums

***reflexblue*** · 03-23-2008, 11:09 PM

http://news.yahoo.com/s/nm/20080324/...paydayloans_dc
More and more people are using pay day loans to pay on their mortgages. At 800% if you took the full two weeks to paya $325 loan back it would cost $793, at those rates somethings gotta give. Maybe a trip to the local loan shark would get them a bettr rate, or more time.

***weswelker#83*** · 03-23-2008, 11:14 PM

Quote:

Originally Posted by reflexblue

http://news.yahoo.com/s/nm/20080324/...paydayloans_dc
More and more people are using pay day loans to pay on their mortgages. At 800% if you took the full two weeks to paya $325 loan back it would cost $793, at those rates somethings gotta give. Maybe a trip to the local loan shark would get them a bettr rate, or more time.

How can you let a business like this rob citizens of your state , that's something i can NOT comprehend.
400 percent interest is a crime against the people of USA.

Stokes · 03-23-2008, 11:21 PM

Quote:

Originally Posted by reflexblue

Maybe a trip to the local loan shark would get them a bettr rate, or more time.

That's true, but they'd have more to pay than late fees if they don't make a payment with the loan shark!

***weswelker#83*** · 03-23-2008, 11:32 PM

I agree that people should be responsible with their choices , but this kind of business is not welcome at all , it's not gonna help at any way , so why let it happen ?

It is like you know heroine is bad , and you legalized it , and you know that people will get killed or addicted to that drug.

***reflexblue*** · 03-23-2008, 11:43 PM

Quote:

Originally Posted by weswelker#83

I agree that people should be responsible with their choices , but this kind of business is not welcome at all , it's not gonna help at any way , so why let it happen ?

It is like you know heroine is bad , and you legalized it , and you know that people will get killed or addicted to that drug.

I think the goverment should crack down on this. To millions of people using credit is to easy. Because its not like they're seeing the cash taken out of their hand. Many people want to have all the little goodies they see others have,or see pimped on tv. And the only way they can get that goodie is to use credit. That goodie may take the form of a house. Now some people on this board will say its their own fault, they borrowed the money,and thats true. But as can be seen now letting TO many irresponsable people borrow money and not pay it back is coming back to bite the economy. Its effects for everybody.

***weswelker#83*** · 03-23-2008, 11:55 PM

Quote:

Originally Posted by reflexblue

I think the goverment should crack down on this. To millions of people using credit is to easy. Because its not like they're seeing the cash taken out of their hand. Many people want to have all the little goodies they see others have,or see pimped on tv. And the only way they can get that goodie is to use credit. That goodie may take the form of a house. Now some people on this board will say its their own fault, they borrowed the money,and thats true. But as can be seen now letting TO many irresponsable people borrow money and not pay it back is coming back to bite the economy. Its effects for everybody.

Exactly , and it is explained in depth in this link:

Predatory Lenders' Partner in Crime

***reflexblue*** · 03-24-2008, 12:08 AM

Quote:

Originally Posted by weswelker#83

Exactly , and it is explained in depth in this link:

Predatory Lenders' Partner in Crime

I think next year with Bush and friends gone? that not only will countries around the world offer help in solving the problems in the M.E. But oil co's, banking and credit companies will not be so bold. Will may see fuel prices drop some, and lenders held responsable for their preditory practices. Along with working on bring the country wich was raped by this administration back to normalcy. But it won't be easy,and it won't be quike. Remember if its a Democratic President the RT will do all they can to dump this mess created over the last 8 years in the Dems lap and do everything in their power to obstruct and hinder the new aminsration.

***DarrylS*** · 03-24-2008, 05:32 AM

These places are cropping up all over the place, wonder who is behind them??

From the FTC a rather obscure warning:

http://www.ftc.gov/bcp/edu/pubs/cons...ts/alt060.shtm

Quote:

The ads are on the radio, television, the Internet, even in the mail. They refer to payday loans, cash advance loans, check advance loans, post-dated check loans, or deferred deposit loans. The Federal Trade Commission, the nation’s consumer protection agency, says that regardless of their name, these small, short-term, high-rate loans by check cashers, finance companies and others all come at a very high price.

Here’s how they work: A borrower writes a personal check payable to the lender for the amount the person wants to borrow, plus the fee they must pay for borrowing. The company gives the borrower the amount of the check less the fee, and agrees to hold the check until the loan is due, usually the borrower’s next payday. Or, with the borrower’s permission, the company deposits the amount borrowed — less the fee — into the borrower’s checking account electronically. The loan amount is due to be debited the next payday. The fees on these loans can be a percentage of the face value of the check — or they can be based on increments of money borrowed: say, a fee for every $50 or $100 borrowed. The borrower is charged new fees each time the same loan is extended or “rolled over.”

The federal Truth in Lending Act treats payday loans like other types of credit: the lenders must disclose the cost of the loan. Payday lenders must give you the finance charge (a dollar amount) and the annual percentage rate (APR — the cost of credit on a yearly basis) in writing before you sign for the loan. The APR is based on several things, including the amount you borrow, the interest rate and credit costs you’re being charged, and the length of your loan.

A payday loan — that is, a cash advance secured by a personal check or paid by electronic transfer is very expensive credit. How expensive? Say you need to borrow $100 for two weeks. You write a personal check for $115, with $15 the fee to borrow the money. The check casher or payday lender agrees to hold your check until your next payday. When that day comes around, either the lender deposits the check and you redeem it by paying the $115 in cash, or you roll-over the loan and are charged $15 more to extend the financing for 14 more days. If you agree to electronic payments instead of a check, here’s what would happen on your next payday: the company would debit the full amount of the loan from your checking account electronically, or extend the loan for an additional $15. The cost of the initial $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

otis p. driftwood · 03-24-2008, 07:45 AM

Quote:

Originally Posted by GJAJ15

These places are cropping up all over the place, wonder who is behind them??

From the FTC a rather obscure warning:

http://www.ftc.gov/bcp/edu/pubs/cons...ts/alt060.shtm

A lot of people are behind them. I know several investors who've put their money to work in this way. You've got risk, but the rewards are pretty high as well.

Who let these people buy more house than they could afford anyway? I'm sorry, but the chit that I went through so I could buy a house--and I wound up having to buy a multi-family so I was forced to decide 'do I want to be a landlord or not have a house of my own"...but I got mine before the banks went ape-turd trying to throw money at people.

***DarrylS*** · 03-24-2008, 08:56 AM

Quote:

Originally Posted by a.paul

A lot of people are behind them. I know several investors who've put their money to work in this way. You've got risk, but the rewards are pretty high as well.

Who let these people buy more house than they could afford anyway? I'm sorry, but the chit that I went through so I could buy a house--and I wound up having to buy a multi-family so I was forced to decide 'do I want to be a landlord or not have a house of my own"...but I got mine before the banks went ape-turd trying to throw money at people.

Are there any ethics involved?? I suspect that somewhere along the line there are some very powerful people in the economic world involved... their very locations indicate who they are intended to screw.. do not see them in the nice burbs..

As far the questions of who let these people buy more house then they could afford? It is the buyers fault, but there was a lot of seduction involved by the lenders.. everyone wants a piece of the dream, some take short cuts.. this whole thing has been an economic disaster.