Cash store crooks ordered to repay $1 million.


JLM
#1
Cash Store ordered to pay $1M for illegal payday loans - British Columbia - CBC News


These bastards were charging customer 23% interest per month. 23% per annum is bordering on criminal! Why aren't these bastards in jail? Is there any way the working poor can organize and starve these bastards out of business?
 
bill barilko
#2
There have always been those who feed off the poor-the only Good News is that I've seen a lot of these places opened in relatively wealthy neighbourhoods-like mine-and close once the lease is up the business just isn't there I can think of two on Broadway that are gone now and another that will be shortly.

So these companies aren't doing as well as they hoped and judgments like this will hurt them further.

I like the sting in the tail-making the bloodsuckers put a million down before the ruling is passed so they can't run for it.
 
taxslave
+3
#3
Right up there with what the government charges. Only they call it penalties so as not to run afoul of their own laws.
 
Locutus
+2
#4
I'm not defending these criminals, however...nobody forces anyone to take one of these loan shark deals. Oh now sure, it's sad and all that there are poor people, some stupid people and gullible ones too. But still. It takes two.
 
JLM
#5
Quote: Originally Posted by LocutusView Post

I'm not defending these criminals, however...nobody forces anyone to take one of these loan shark deals. Oh now sure, it's sad and all that there are poor people, some stupid people and gullible ones too. But still. It takes two.


You're absolutely right, I was stuck for a P.C. admonishment for the patrons.
 
JLM
#6
Quote: Originally Posted by LocutusView Post

I'm not defending these criminals, however...nobody forces anyone to take one of these loan shark deals. Oh now sure, it's sad and all that there are poor people, some stupid people and gullible ones too. But still. It takes two.


Do you think that patronizing these bandits is a prime reason they are poor?
 
L Gilbert
+2
#7
"That's because B.C. regulations prohibit payday lenders from charging more than 23 per cent interest per month." Jeepers! How very magnanimous of the BC gov't to limit interest rate charges to 23% per month.
 
damngrumpy
+4
#8  Top Rated Post
Think about this for a minute the loan sharks would be charging a lot more.
No I don't think they need sympathy they are parasites. For the poor it
becomes a tredmill pay the loan and interest, borrow before the end of the
month and pay the loan and interest. We need to teach some people how
to manage money and society would be a lot better off
 
SLM
+3
#9
Quote: Originally Posted by LocutusView Post

I'm not defending these criminals, however...nobody forces anyone to take one of these loan shark deals. Oh now sure, it's sad and all that there are poor people, some stupid people and gullible ones too. But still. It takes two.

I agree, it absolutely takes two. But we (society) shouldn't be legitimizing it either. If we're going to legally allow what I call "fringe financing" businesses, perhaps we want to take the time to determine limits on what they can charge? At least, let's see if we can't make it on the fairer side of what the Gambino Family might be charging, ya know? Lol.
 
Machjo
+1
#10
Quote: Originally Posted by LocutusView Post

I'm not defending these criminals, however...nobody forces anyone to take one of these loan shark deals. Oh now sure, it's sad and all that there are poor people, some stupid people and gullible ones too. But still. It takes two.

Righs, just as a drug addict choose to buy drugs. The lender, just like the dealer in this analogy, is still not excused. If I should exploit another person's stupidity, desperation, addiction, or anything else of the sort, I should accept at least part of the responsibility for that person's circumstances.

Stupid or not, a person still has a right to not be exploited.
 
SLM
+3
#11
Quote: Originally Posted by MachjoView Post

Righs, just as a drug addict choose to buy drugs. The lender, just like the dealer in this analogy, is still not excused. If I should exploit another person's stupidity, desperation, addiction, or anything else of the sort, I should accept at least part of the responsibility for that person's circumstances.

Stupid or not, a person still has a right to not be exploited.

I don't think he was excusing the lenders, believe he actually called them criminals actually, but there is a valid point to be made that the borrowers need to take some responsibility for their part in it. Using the drug addict analogy, the addict will always need to take responsibility for their part in it if there is ever hope for recovery, it simply is not possible without it.

But I do agree with the exploitation piece, in that we should not be legitimizing an organization that exploits people at least not to that degree. An argument can be made that all services "exploit" on a certain level. I mean, if your pipes burst in winter you call a plumber, he essentially earns his living when people are desperate and in need. But that situation is reasonable. Charging the rates that these payday loan places charge, can be no ones definition of reasonable. If we're going to give a business license to these guys, we might as well give one to the traditional loan shark as well.
 
Machjo
+1
#12
True SLM. Maybe I'd misunderstood the post.
 
MHz
#13
Quote: Originally Posted by JLMView Post

Cash Store ordered to pay $1M for illegal payday loans - British Columbia - CBC News


These bastards were charging customer 23% interest per month. 23% per annum is bordering on criminal! Why aren't these bastards in jail? Is there any way the working poor can organize and starve these bastards out of business?

Are you sure that is correct, it is 23% for a loan that is due in 14 days is it not making it 46% per 30 days? On top of that the 23% is still in place if the loan is only for as few as 3 or more days so per month that is 230%

Quote: Originally Posted by SLMView Post

I agree, it absolutely takes two. But we (society) shouldn't be legitimizing it either. If we're going to legally allow what I call "fringe financing" businesses, perhaps we want to take the time to determine limits on what they can charge? At least, let's see if we can't make it on the fairer side of what the Gambino Family might be charging, ya know? Lol.

What kind of example does the Govt show when they pay billions each year in usury on the national debt when it could be $0?
 
Dixie Cup
#14
Yeah, my understanding from what I've seen from these cash loan companies is that 35% is a GOOD rate! Many have upwards of 60% plus once you factor everything in. Still, I believe it's a legal form of loan sharking and they shouldn't even be allowed.


JMO
 
Sal
+1
#15
Quote: Originally Posted by JLMView Post

Do you think that patronizing these bandits is a prime reason they are poor?

no, they patronize them because they are poor
 
lone wolf
+2
#16
I wonder how much they actually make when you factor in the people who take the money, forget the loan and run off to the next Cashstop
 
JLM
+1
#17
Quote: Originally Posted by lone wolfView Post

I wonder how much they actually make when you factor in the people who take the money, forget the loan and run off to the next Cashstop


I don't think the guys dispensing the money just fell off the turnip truck.
 
lone wolf
+2
#18
Quote: Originally Posted by JLMView Post

I don't think the guys dispensing the money just fell off the turnip truck.

You wouldn't know it with some of them.... A good story from Bruce (now deceased - a victim of his own stupidity) got him several thousand dollars from three payday loan places here in Sudbury.
 
taxslave
#19
If there are going to be restrictions on the loan sharks then at the same time there has to be legal ramifications for those that do not pay back their debt. These are unsecured loans to people with bad credit.
 
Machjo
#20
Quote: Originally Posted by taxslaveView Post

If there are going to be restrictions on the loan sharks then at the same time there has to be legal ramifications for those that do not pay back their debt. These are unsecured loans to people with bad credit.

That should fix itself. The lower you place the cap on interest rates, the less interested businesses will be to lend money to people with bad credit, as it should be.
 
JLM
#21
Quote: Originally Posted by MachjoView Post

That should fix itself. The lower you place the cap on interest rates, the less interested businesses will be to lend money to people with bad credit, as it should be.


I think that many people with a bad credit rating don't understand how interest rates work, they see being about to borrow say $200 for two weeks for $10 interest as a good deal whereas it's F**KIN' criminal. In actuality anything over 80 cents would be criminal.
 
Machjo
#22
Quote: Originally Posted by JLMView Post

I think that many people with a bad credit rating don't understand how interest rates work, they see being about to borrow say $200 for two weeks for $10 interest as a good deal whereas it's F**KIN' criminal. In actuality anything over 80 cents would be criminal.

And placing a reasonable legal cap on interest rates would put an end to legal loansharking, and so help to protect the poor. Loansharks just won'tbe interested in loaning at such low rates anymore.
 
Goober
#23
Quote: Originally Posted by L GilbertView Post

"That's because B.C. regulations prohibit payday lenders from charging more than 23 per cent interest per month." Jeepers! How very magnanimous of the BC gov't to limit interest rate charges to 23% per month.

The SCoC just announced they will hear a class action suit brought by Alberta clients.
They tried to avoid this as they have an arbitration clause, the Govt has to accede to their request for arbitration. The Govt refused their request twice.
 
JLM
#24
Quote: Originally Posted by MachjoView Post

And placing a reasonable legal cap on interest rates would put an end to legal loansharking, and so help to protect the poor. Loansharks just won'tbe interested in loaning at such low rates anymore.


I'm not sure what the best answer is for it, maybe set a maximum rate at 10% per annum (including handling and service charges), it would stop the theft and might just get people motivated to improve their credit rating.
 
Kreskin
+2
#25
How much business risk is associated with those least likely to pay it back?
 
JLM
#26
Quote: Originally Posted by damngrumpyView Post

Think about this for a minute the loan sharks would be charging a lot more.
No I don't think they need sympathy they are parasites. For the poor it
becomes a tredmill pay the loan and interest, borrow before the end of the
month and pay the loan and interest. We need to teach some people how
to manage money and society would be a lot better off


I see one problem, I'm betting some of the ones who are willing to pay these criminal rates are the same ones that want everything now.

Quote: Originally Posted by KreskinView Post

How much business risk is associated with those least likely to pay it back?


Probably not much as I think there is probably a limit of perhaps a few $hundred. (And you can't travel too far when you're broke)
 
Ron in Regina
+2
#27
Quote: Originally Posted by JLMView Post

Cash Store ordered to pay $1M for illegal payday loans - British Columbia - CBC News


These bastards were charging customer 23% interest per month. 23% per annum is bordering on criminal! Why aren't these bastards in jail? Is there any way the working poor can organize and starve these bastards out of business?

23% per month? That's less than 300% per annum. That's not bad assuming
that is factoring in the fee's as interest. For small loans, factoring in the fee's and
such and calling those interest, on a short term....then working that out as if per
annum....might be 2000% or more.

Quote: Originally Posted by KreskinView Post

How much business risk is associated with those least likely to pay it back?

That depends on the skill & experience (and tenacity) of the employee's at
any given location.

Quote: Originally Posted by JLMView Post

I'm not sure what the best answer is for it, maybe set a maximum rate at 10% per annum (including handling and service charges), it would stop the theft and might just get people motivated to improve their credit rating.

Just get the major banks to offer tiny (to them) loans (of $200-$700 for example)
for short periods (1/2 a month or so) to people with no (or horrendous) credit and
no assets or collateral...for a maximum rate of 10% per annum (including handling
and service charges). That would be funny. Have the Gov't mandate that they have
to do it.

What would a bank do when someone doesn't repay?

Quote: Originally Posted by JLMView Post

I think that many people with a bad credit rating don't understand how interest rates work, they see being about to borrow say $200 for two weeks for $10 interest as a good deal whereas it's F**KIN' criminal. In actuality anything over 80 cents would be criminal.

If you are willing to roll the dice and start lending out $200 a pop for two
week periods for $10 interest for that two weeks (which is about 130%
per annum) to random people you've just meet....then get yourself a
storefront and a sign 'cuz there's obviously a market.

Quote: Originally Posted by SLMView Post

I agree, it absolutely takes two. But we (society) shouldn't be legitimizing it either. If we're going to legally allow what I call "fringe financing" businesses, perhaps we want to take the time to determine limits on what they can charge? At least, let's see if we can't make it on the fairer side of what the Gambino Family might be charging, ya know? Lol.

The Gambino Family wouldn't touch 99% of the patrons of the Payday Loan
industry, as it wouldn't be worth the time to chase them over the dollar figures
involved, and (I'm assuming) wouldn't have the knowledge base to legally do
anything about the debt anyway. The Gambino Family wouldn't take those kind
of risks I'm assuming.

Quote: Originally Posted by damngrumpyView Post

Think about this for a minute the loan sharks would be charging a lot more.
No I don't think they need sympathy they are parasites. For the poor it
becomes a tredmill pay the loan and interest, borrow before the end of the
month and pay the loan and interest. We need to teach some people how
to manage money and society would be a lot better off

Excellent post! Credit counseling to those 'treadmill' borrowers by the employee's
in the Payday Loan industry (who don't want to be burned either) to show the folks
that if you borrow less each time (and such up some financial pain), you can ween
yourself off the Loan Teet.
 
SLM
+1
#28
Quote: Originally Posted by Ron in ReginaView Post

The Gambino Family wouldn't touch 99% of the patrons of the Payday Loan
industry, as it wouldn't be worth the time to chase them over the dollar figures
involved, and (I'm assuming) wouldn't have the knowledge base to legally do
anything about the debt anyway.

I've never used it but I'm pretty sure they find a way to snatch the repayment off your next paycheque as soon as it hits the bank. I don't see these places lasting long if you're waiting for people to come in and payback a loan.

Quote:

The Gambino Family wouldn't take those kind
of risks I'm assuming.

LOL. When the mob is more conservative than the payday loan people.......
 
Ron in Regina
#29
Oh yeah, it's not just the poor as most people think of them using this industry.
It's a much larger segment of society. Chances are, it's your Family and your
Neighbours. People with good jobs and good (but overextended) credit are
much of the customers.
 
SLM
#30
Quote: Originally Posted by Ron in ReginaView Post

Oh yeah, it's not just the poor as most people think of them using this industry.
It's a much larger segment of society. Chances are, it's your Family and your
Neighbours. People with good jobs and good (but overextended) credit are
much of the customers.

It doesn't really matter who is using it, they are nearly impossible to get out from under.
 

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