re: Just took on a client who took out pay day loans

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People like to point to the APR on these loans because of the obvious shock factor, but the overall profit margins for the payday loan industry are comparable to conventional banks. The high level of bad debt write-offs due to lending to high risk customers coupled with the relatively higher origination costs of such small loans offsets the higher interest rates/fees charged.

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And the flip-side of the coin finally appears. These are the things that most people don't consider. They don't just charge the high fees on these small-dollar loans because they can, they charge them so they can recoup losses on the incredibly high charge-off rates they will undoubtedly have. I'm not saying it's "right" or "wrong," those are personal opinions...but most people take the bait from new articles (i.e. 1,000% APR) and don't stop to think about anything else. And, yes, there are many people who take out these loans and fall into a cycle of debt that is difficult to get out of. But, these companies also provide a service to many people that utilize them more in-line with the original intent and are completely satisfied.

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If I was broke with no credit, I guess I would try it...but I damn sure would pay them back that much.....credit was fricked anyway, so why would he care to pay them back

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This is the exact sort of thing I'm talking about.