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This make sense. They did this for credit cards. They could do this for Payday Loans. A simple chart that shows the interest rate, principal, interest dollar amount, fees.
That way people will see that when they borrow $1000, they are paying $300 in interest.
In Iowa they are required to have a huge wall chart showing the interest rate and amount of interest paid clearly visible when you walk in.
In Iowa they are required to have a huge wall chart showing the interest rate and amount of interest paid clearly visible when you walk in.
Although I am against banning payday loans, I think honest disclosure is a good thing....
When I worked at a tax service, I sold payday loans...usually to poor/minorities...I felt bad and went way beyond explaining how much in fees would be taken out of the loan...some people didn't care and just wanted money....
As long as people know the rules/fees, I'm all for this product being available.
I say make them put a big sign above the door pointing to the people that have no money skills. Maybe have a loud siren go off when they enter. Also once they walk thru the doors have the company make the customers read information on what they are getting themselves into. They then can sign a paper saying that they agree to the reaming and let it go at that.
All kidding aside, as far as I know the companies do inform the customers of the cost to borrow the money. If they cann't see that then I doubt we can do anything. It is their decision to use these places.
In Iowa they are required to have a huge wall chart showing the interest rate and amount of interest paid clearly visible when you walk in.
Ah. I'll be honest and fess up that I've never actually gotten a payday loan and thus am not aware of what is the norm when it comes to these types of loans.
All kidding aside, as far as I know the companies do inform the customers of the cost to borrow the money.
Sir, as a person who sold them, I can assure you many companies do everything in their legal power to give as LITTLE information on the fees as possible (because its such a ripoff)
However, some people need money desperately and will pay whatever interest to get money upfront...its just the way it is..pretty much loansharking.
If the market can bear it and people want the service, I am against banning it because some people have no other choice in that...
The payday loan companies here (and I believe they are the same ones you have) are absolute vultures - they'll even loan to welfare recipients, take their bank details and just swipe the money - welfare check comes in, 100% goes out same day - nil to live on. Oh, and their 'agents' don't stay in the shops but come out and target potential looking 'customers' in the street - definitely need regulating here but can't see that ever happening.
WESTERN SKY FINANCIAL is a Native American business operating within the exterior boundaries of the Cheyenne River Sioux Reservation, a sovereign nation located within the United States of America.
where one can take out a $1,000 loan and pay it back at the rate of $198.19 per month for 24 months? Yep, pay back $4,756.56 in two years on a $1,000 loan.
You can't ban stupid doing stupid but maybe we could educate some people and just maybe save a couple from ruin.
where one can take out a $1,000 loan and pay it back at the rate of $198.19 per month for 24 months? Yep, pay back $4,756.56 in two years on a $1,000 loan.
You can't ban stupid doing stupid but maybe we could educate some people and just maybe save a couple from ruin.
There are many examples of products out there that when 'abused' by stupid people can cause alot of harm..(alcohol comes to mind)
Do we ban that? How about cars because stupid people cause accidents in them?
where one can take out a $1,000 loan and pay it back at the rate of $198.19 per month for 24 months? Yep, pay back $4,756.56 in two years on a $1,000 loan.
You can't ban stupid doing stupid but maybe we could educate some people and just maybe save a couple from ruin.
Just what are you going to educate them on? The education is all clearly there on Western Sky's website. As long as that's the case, I don't see a problem with it. I wouldn't borrow at those rates, but there you go.
Each state handles payday loan companies differently. I think since the financial crisis there are already laws in place all over the country at the state level, curbing their practices.
I don't like them at all and think they are somewhat predatory, but there are some people out there that have no other support structure and use them to get by. Using Pay-day loan companies are very similar to overcharging a credit card and not being able to pay it back.
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