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.
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.
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?
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.
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.
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.
