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Location: Big Island of Hawaii & HOT BuOYS Sailing Vessel
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Did anyone here get or know of someone who got a Payday loan?
And I thought things were bad here in the Philippines where lenders frequently charge per month anywhere from 3-10 percent per month even if the loan is 100% collateralized.
I guess 950% interest didn't qualify as predatory lending in the eyes of people appointed by Trump.
Another example of Trump's team protecting the interest of ?????
The article is pretty bare on the facts of the matter. There are generally rules in place that limit the interest that can be charged so I'm not sure if we're getting the whole story here.
In fact, it sounds like it was "sexied up" like omitting that she missed re-payments or something else.
Be at least a little wary of the CFPB. They're enjoyed mightly by the trial lawyers associations as federal penalties make their civil suits much easier and have used some pretty dubious tactics in the past to try to tar & feather companies. (The CFPB that is).
Ok, I see "up to 950% interest" in some cases....but offers no proof.
The Michigan lady claims $900 and over 3k in payments in 12 months which would imply 300/mo. in payments which even at 10% monthly would retire the debt in less than 4 payments.
That's an annualized rate that would be staggeringly high.
The article is pretty bare on the facts of the matter. There are generally rules in place that limit the interest that can be charged so I'm not sure if we're getting the whole story here.
In fact, it sounds like it was "sexied up" like omitting that she missed re-payments or something else.
Be at least a little wary of the CFPB. They're enjoyed mightly by the trial lawyers associations as federal penalties make their civil suits much easier and have used some pretty dubious tactics in the past to try to tar & feather companies. (The CFPB that is).
Something about the whole article doesn't feel *right*, the numbers don't seem to work because if they charged her 950% interest and she says she borrowed $900 then she should be owing a lot more.
I don't know if it's crappy reporting or some level of dishonesty afoot.
The lender was accused of 950% interest, she may have not been the victim.
Still in 12 months $900 shouldn't turn to almost 4K.
Payday loans are scams, that desperate people in hard times fall into
The article is pretty bare on the facts of the matter. There are generally rules in place that limit the interest that can be charged so I'm not sure if we're getting the whole story here.
In fact, it sounds like it was "sexied up" like omitting that she missed re-payments or something else.
I have a feeling this whole story is sexed up. Everyone wants to be first with a story to grab as much click-bait revenue as they can. Eventually we'll find out. The CFPB has nothing on their website about this. Golden Valley is owned by the Habematolel Pomo Tribe, I wonder if that's part of the story.
Yep. After posting I went back and re-read and caught where I was wrong and was correcting it.
The problem is that these are often short term loans so that you have someone borrow say $100 at 5% month interest but with a $15 origination fee.
So they wind up paying $120 for the $100 for a month which is 20% which then annualizes to a number in the thousands of % APR.
Now look at say a mortgage, there are hundreds if not thousands of dollas in costs to originate a home mortgage but it's paid over the 30 years (or whatever) and the amount lent might be 100k or more in the majority of cases.
While I don't encourage anyone to get into payday loan or credit card debt, the payday loans are typically such modest amounts for such a short time-frame that the fees they have to collect are enormous if converted into an APR.
It's a really tough subject with existing laws capping the fees in most states for a reason like I linked to for Michigan. The APR thing is pretty misleading IMO but 950% sounds a lot sexier than "It cost Bob, $50 to borrow $300 for two weeks".
I have a feeling this whole story is sexed up. Everyone wants to be first with a story to grab as much click-bait revenue as they can. Eventually we'll find out. The CFPB has nothing on their website about this. Golden Valley is owned by the Habematolel Pomo Tribe, I wonder if that's part of the story.
That's an interesting bit of info that it's tribal owned.
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