Cash Advance/ Payday loans Annualized percentage rate: 391% (Yes, 391%)

[elehhhhna]

Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis).

A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit. Let's say you write a personal check for $115 to borrow $100 for up to 14 days. The check casher or payday lender agrees to hold the check until your next payday. At that time, depending on the particular plan, the lender deposits the check, you redeem the check by paying the $115 in cash, or you roll-over the check by paying a fee to extend the loan for another two weeks. In this example, the cost of the initial loan is a $15 finance charge and 391 percent APR. If you roll-over the loan three times, the finance charge would climb to $60 to borrow $100.

Alternatives to Payday Loans...

http://www.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.htm

[BOSSHOG]

1. I hate those places

They are outside every military base in the country preying on junior Soldiers and Sailors and Marines and their families with their happy faces and ready cash. And eventually those kids will be sent to mandatory financial counseling with ruined credit that will take years and years to fix.

[5X]

2. The owners of the property where I work run one of these businesses...

one that is entirely web and email based.

I work on their computers sometimes, they are frequently infested
with viruses and worms. One of the recent ones was meant to send
various kinds of info to a web address in Russia.

[High Plains]

3. These operations are parasites. Where's the bug spray?

[Double T]

4. Loan Shark Criminals...........

what would you expect?

[MercutioATC]

13. "Criminals" would imply they're breaking the law.

They're not.

I agree that they're taking advantage of people, but it's a voluntary service. Nobody's putting a gun to these people's heads.

[notadmblnd]

5. thye've popped up around here lately,

but I've never seen anyone go in or come out of one. And I know absolutely no one that has ever used one.

[oscar111]

8. ILLEGAL some years back, i am told.

Usury laws were what did it.

i suppose reagan got rid of such regulations.

slime runs such stores. Parasites.

How do progressive nations handle debt humanely?

[oscar111]

9. RECOMMEND

xxxxx

[Metta]

6. Unchecked free trade supported by those who get their pockets lined.

There aughta be a law.

[Wiley50]

7. One has me by the balls right now

I am disabled and live on $603 a month SSI

I lost my home and had to file chapter 7 after my first back surgury
so I have no credit.

Luckily, when my disability came through (after 3 years waiting)
they owed me a lump sum.
So I invested it in an older sailboat that I bought on Ebay
If I hadn't, I'd be homeless now.

I'm trying to rebuild the boat which costs money
and on $603 a month it doesn't leave much to live on

So a few months back I had to start floating checks
at a payday advance place.
Now, on the first of each month, when I get my check
the first thing I do is pay them $348 for the $300 I had to borrow
the month before. That leaves me short for the month again
so it just keeps repeating

I don't know how to get caught up

So they just get to skim $50 a month off of me

[oscar111]

10. Hebrew free loan society in NYC

I have heard that it does or did exist.

dont know anything about it, but it sounds good.

Any DUers able to help wiley? We ought to do a much better job of helping each other. Ignoring each other hurts the movement for progress.

[notadmblnd]

11. I could pitch in 10 or 20 later this week

if you want to set it up.

[laylah]

15. Wiley

I am in the same boat (no pun intended :silly:) I, too, had to declare Chapt. 7 earlier this year due to job loss, health, and becoming a member of the "Poverty Stricken Ex-Wives Club". Fortunately, I finally found a job. However, in June, before I got my first check, I had to pay living expenses and did what had to have been the most idiotic stunt of my life! I got a "title loan" on my car for $400, thinking heck, with the new job, I could have it paid off in a month. Well, I have paid about $300 to date and still owe $300 if paid by August 21st, or almost $600 by September if I let it go full term. I could lose my car which will result in losing my job as transporting kiddos to/from day treatment is part of my position. I am freaking but all I can do is pray to the Powers that be that I will beat the deadline, promising I will NEVER, under ANY circumstance, ever do such an idiotic thing again!

Jenn

[1932]

12. Many of these pay day lenders are owned by corps like citibank, jp morgan

etc.

The pay day lenders are incredibly profitable, so they're owned by large financial institutions (who lobby gov't to prevent regulation).

[fasttense]

14. Deregulation at its best (or worst). It use to be illegal

to be a loan shark. Not any more, now people can blame the victim for being "dumb". But if it is legal, wouldn't you expect it to be fair? Not under our new United Corporations of America. Soon, companies will be paying us in their own script that we can only use in the company owned store, welcome to the 1800s.