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Posted on 2/5/18 at 12:42 pm to KiwiHead
quote:
he's literally paying 400 a month on a 700.00 loan.
My god.
That is so bad.Posted on 2/5/18 at 12:42 pm to jiffyjohnson
quote:
If he's set up on Bi-monthly autodrafts it's further evidence that he's not reliable with his payments.
True, but he was on disability for almost 6 months....disability does not pay you squat....about maybe 70-80% of your gross. His life is a mess because of it. All of his money went o paying for medications, and the roof over his head, etc.....then he took out the loan
Posted on 2/5/18 at 12:43 pm to KiwiHead
https://www.advanceamerica.net/apply-now/online/LA
This next bit is actually quoted from a payday loan site. I feel like they know their target audience and even if they plainly spell out what type of finance charges they are looking at, they know these desperate people are still going to come and borrow.
quote:
View Fees & Amounts: (Adjust with plus or minus buttons)
– $300.00 +
Loan Amount: $300.00
Finance Charge: $55.00
APR: 477.97%
Total Amount Due: $355.00
Assumes 14 day term. Loans subject to approval. The Finance Charge includes (1) a loan fee of 16.75% of the repayment amount of your loan not to exceed $45.00, plus (2) a $10.00 documentation fee. Examples provided are typical loans offered to qualified applicants. Other loan terms and amounts may be available.
This next bit is actually quoted from a payday loan site. I feel like they know their target audience and even if they plainly spell out what type of finance charges they are looking at, they know these desperate people are still going to come and borrow.
quote:
General Louisiana Payday Loan Laws
Below you will find some of the important laws related to loan limits, finance charges, loan terms and interest rates. These are very important in protecting your rights as a borrower.
The maximum loan amount you can obtain is $350.
The maximum amount of interest a payday lender can charge is 16.75 percent of the face amount of the check.
Payday loans are installment loans, and the maximum amount of days you have to repay the loan is 60 days.
The maximum finance rate and fees is where you get hit the hardest in terms of the overall cost of a payday loan. Therefore, Louisiana sets limits on these fees. The lender can only charge a five dollar documentation fee. On top of this fee the lender can charge the greater of16.75 percent of the check, or $45.
If you take out a 14 day loan, the lender can charge and additional $25 on top of the interest rate.
A lender, by law, is allowed to charge a 650 percent APR on a 14 day, $100 loan.
Posted on 2/5/18 at 12:43 pm to kywildcatfanone
quote:
Unfortunately he agreed to the terms.
Yep.
And some of them have "no early pay off" language in the contract so they're stuck with the interest even if they hit the lottery and could pay off the entire loan right away.
Posted on 2/5/18 at 12:45 pm to KiwiHead
The fees added onto the loan are crazy. A $75 loan has fees of $50 to do the loan, plus the interest on the money. A small loan like this is done in weekly installments. The first 5 or so are just paying fees and interest. Once the actual loan balance gets below the original $75, the borrower is eligible to get the difference between the balance and the $75 as another cash loan. Example; borrower has paid down loan to $50, he can get $25 in cash. The loan balance now goes back to the $140 or so(fees + interest). In essence, it cost him about $70 to get $25. The same people keep doing this over and over. The loan companies will even call people and tell them they can get cash if they just come in and redo the loan. Amazing how many people do this.
Posted on 2/5/18 at 12:46 pm to lsunurse
quote:
Payday loans were voted illegal here a few years ago.
However....all those payday loan places did was just change to title loan places.
They should be illegal... Or have restrictions on the amount of interest they can charge. I am all for businesses making as much money as possible and usually don't agree with government telling people what to do, but these loans target poor people. They take out these loans because they need money before they get paid. If it cost them $750 to borrow $500.. They are having to hurt themselves in the long run to solve a short-term problem.
Posted on 2/5/18 at 12:46 pm to Napoleon
quote:
I agree, which is why all drugs should be legal.
Coke to wake up and heroin to go to sleep.
Posted on 2/5/18 at 12:47 pm to Napoleon
I think western sky gets around the caps because its based on an Indian reservation
Posted on 2/5/18 at 12:49 pm to KiwiHead
quote:
he's literally paying 400 a month on a 700.00 loan.
You took on a client who has a $700 loan who is paying $400/month but can't pay it off himself? You might as well call you collector guys and give them a head start. I give him 6 months and you'll be trying to chase down payments from him.
Posted on 2/5/18 at 12:49 pm to KiwiHead
What you're describing is someone who made a decision and has trouble living with the consequences of it. He had contract terms and failed to meet them and his account rolled delinquent. That's the only reason for double monthly payments scheduled like that. Did the company file suit against him for the delinquency?
Posted on 2/5/18 at 12:53 pm to KiwiHead
quote:
Anyone in the OT know anything about these "predatory" lenders and how they operate and how they are able to essentially get away with 680% APR?
Stop with this absolute BS misleading statistic.
It is like saying that a $100 a night hotel room costs $36,500 a year, when virtually nobody rents a hotel room for a year.
Posted on 2/5/18 at 12:54 pm to LSUTigerBait07
quote:
There is a pretty good documentary on one of these companies on Netflix. Dirty Money.
I watched the first episode of this series and it was okay.. Then I watched the episode titled "The Confidence Man"..
Posted on 2/5/18 at 12:56 pm to jiffyjohnson
Get off your high horse. Not many banks will loan people money without collateral or security of some kind. This is independent of payment history.
Posted on 2/5/18 at 12:57 pm to Napoleon
quote:
I agree, which is why all drugs should be legal. Coke to wake up and heroin to go to sleep.
100% agree
Posted on 2/5/18 at 12:59 pm to KiwiHead
This is straight off their website for Louisiana. This is Check Into Cash.
Cash Needed/ Fee Amount/ Held Check Amount/ Annual Percentage Rate
$50.00 $20.00 $70.00 1042.86%
$75.00 $25.00 $100.00 869.05%
$100.00 $30.00 $130.00 782.14%
$125.00 $35.00 $160.00 730.00%
$150.00 $40.00 $190.00 695.24%
$175.00 $45.00 $220.00 670.41%
$200.00 $50.00 $250.00 651.79%
$225.00 $55.00 $280.00 637.30%
$250.00 $55.00 $305.00 573.57%
$275.00 $55.00 $330.00 521.43%
$300.00 $55.00 $355.00 477.98%
Cash Needed/ Fee Amount/ Held Check Amount/ Annual Percentage Rate
$50.00 $20.00 $70.00 1042.86%
$75.00 $25.00 $100.00 869.05%
$100.00 $30.00 $130.00 782.14%
$125.00 $35.00 $160.00 730.00%
$150.00 $40.00 $190.00 695.24%
$175.00 $45.00 $220.00 670.41%
$200.00 $50.00 $250.00 651.79%
$225.00 $55.00 $280.00 637.30%
$250.00 $55.00 $305.00 573.57%
$275.00 $55.00 $330.00 521.43%
$300.00 $55.00 $355.00 477.98%
This post was edited on 2/5/18 at 1:00 pm
Posted on 2/5/18 at 1:00 pm to BACONisMEATcandy
quote:
I think western sky gets around the caps because its based on an Indian reservation
How much Indian do you need in you to open up casinos and payday loan places? I am waiting for my ancestry results now... If I have enough Indian in me, I might open up a casino.
Posted on 2/5/18 at 1:00 pm to Boudreaux35
quote:
You took on a client who has a $700 loan who is paying $400/month but can't pay it off himself?
I'm an attorney by trade.....well, recovering attorney,but my specialty used to be what is affecting this guy without going into detail. His sister works for us and I took this on as a favor to her......doubt she knows the extent of her brother's financial problems.
He took a short term problem and created a longer term problem
I didn't lend him the money. I got the company information and I am paying it off myself , no expectation of repayment....If I win the case or settle, I won't be hurting and the 600.00 balance that I paid off will be insignificant.....it was simple interest loan, at least they were kind enough to offer him that
Posted on 2/5/18 at 1:00 pm to BACONisMEATcandy
Western sky is no more. They were charging 135% interest.
Posted on 2/5/18 at 1:04 pm to Athanatos
It's a 700 dollar loan. How much collateral do you think the bank needed that he didn't have to cover that? You really gonna go with "it didn't have anything to do with his credit" ?
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