Payday Loans

[Conesmasher]

I haven't seen anything on here about the Ohio law that they are proposing limiting the interest rate that can be charged for "payday loans".

 

http://www.lbo.state.oh.us/fiscal/fiscalnotes/127ga/HB0545IN.htm

 

Is it right to limit a companies excessive profits?

Should the gov't be allowed to tell these people how much they can charge?

[Berto]

Should the gov't be allowed to limit fuel company profits?

 

just playing devil's advocate.

[Got-Boost?]

I think they should raise the interest to 100% so people would get a clue on those rediculous pay day loans...

[Mensan]

I haven't seen anything on here about the Ohio law that they are proposing limiting the interest rate that can be charged for "payday loans".

 

http://www.lbo.state.oh.us/fiscal/fiscalnotes/127ga/HB0545IN.htm

 

Is it right to limit a companies excessive profits?

Should the gov't be allowed to tell these people how much they can charge?

 

Absolutely. Some companies are loan sharking.

[HotCarl]

I think they should raise the interest to 100% so people would get a clue on those rediculous pay day loans...

 

HA ive heard some interest rates on those BS loans can exceed 300%, what a fucking joke.

 

Then again, they exsist people someone, somewhere buys them.

[Akula]

I think they prey on the uneducated and those that don't really understand money.

 

RAC (Rent A Center) does a huge amount of business and they charge insane rates.

 

When I was in college we did a study on RAC/Rent to own stuff. We spec'd out a simple stereo that was $300 and at the end of the term when it was finally purchased it was something like $4000. Is that right? It is if you can get someone to sign on and buy!

[Clifford Automotive]

will post later

 

spot reserved

[cptn janks]

I think they should raise the interest to 100% so people would get a clue on those rediculous pay day loans...

 

there is that one place i see on TV. i forget the name.. but they offer loans up to like 3000 dollars. if you read the fine print, APR is 99.25% on a 2500 loan.

 

lol.

[cptn janks]

now mr simpson, i assume you are familiar with our state's strict usuary laws?

 

usuray?

 

oh silly me, i must have made up a word that doesnt exist. please sign here.

[Drewhop]

I think they prey on the uneducated and those that don't really understand money.

 

RAC (Rent A Center) does a huge amount of business and they charge insane rates.

 

When I was in college we did a study on RAC/Rent to own stuff. We spec'd out a simple stereo that was $300 and at the end of the term when it was finally purchased it was something like $4000. Is that right? It is if you can get someone to sign on and buy!

 

 

I hate Rent A Center with a passion worked for the company for 5 years but a 300 dollars retail will not make 4000 dollars but they do require 4x's COST of item on any rent to own stuff. So a 300 dollar retail item (cost of say 250) made up will be 1k dollars on rto. Still ridiculous profit on a small item. The only way to get to some of the extreme high numbers of 4k dollars would be to be late on every single payment encuring late fees and interest even then i dont think it could be that high.

 

RTO/Check cashers prey and thrive on the poor and people who do not understand money and interest. I would say that in all honesty customer who walk thru the doors of those stores have a credit score average of under 580 pts. And the typical combined household income is under 30k. Just random useless information.

[RedRocket1647545505]

I'm of the opinion that if you're dumb enough to get suckered into one of those, then you deserve whatever you get. It's not the .govs responsibility to protect you from retarded decisions.

 

We had to watch a video in a Soc 101 class about predatory lending and how it targets the uneducated, followed by a discussion of how we could help the poor, pitiful dumbfucks of the world, and deter them from putting themselves into even more debt.

Tough shit. Darwin is a motherfucker.

[GRN96WS6]

I think they should raise the interest to 100% so people would get a clue on those rediculous pay day loans...

 

 

Ridiculous even

[Conesmasher]

Absolutely. Some companies are loan sharking.

 

 

Sure some companies are loan sharking, but if the things that they participate in are illegal, then they are illegal. Capping the interest rate they can charge is ridiculous. I am all for making laws "mandatory" for people to sign. Disclosure this, disclosure that.

 

Similar to signing a mortgage. I don't know how many papers I signed stating my interest rate, my payment amount, and what this and that was. It was duplicate copies of duplicate copies. If the common person was subjected to this paperwork and they walked out of there NOT knowing what they are buying......they should be declared mentally incompetent to enter in any contracts, period.

 

 

When the gov't tells me how much money I can make, I need to have the same ability to tell them how much I'm going to pay them.

[Mensan]

The amount of interest that people pay on borrowed money has a direct effect on how much of a surplus that same group has. This is why the federal government varies the amount of the federal interest rate. By lowering the rate, a surplus of available funds is created, allowing more money to be spent on things that are not interest. This is why our federal government has been lowering the rate recently.

 

However, with the recent situation of predatory lending (and other problems) creating financial hardships for most people, a lot of people in trouble either turned to companies charging very high interest, or their variable rate was changed. Even people who have never been irresponsible can have the interest rate that they pay affected by incorrect information on their credit reports or by selling of their debt to another company. This in turn has negated the federal rate cut, since companies can charge whatever rate they choose. No more additional money has been freed, and the economy takes a downturn. The "unintelligent" people that have fallen into this trap are, unfortunately, the biggest spenders in our economy, and therefore they have the largest influence on how much our money is worth. If this law were to pass, I believe we would see a largely positive effect on our economy.

 

While your argument seems to make sense on the surface, there is a lot more going on than we understand.

[mmZ06]

I'm of the opinion that if you're dumb enough to get suckered into one of those, then you deserve whatever you get. It's not the .govs responsibility to protect you from retarded decisions.

 

We had to watch a video in a Soc 101 class about predatory lending and how it targets the uneducated, followed by a discussion of how we could help the poor, pitiful dumbfucks of the world, and deter them from putting themselves into even more debt.

Tough shit. Darwin is a motherfucker.

 

I agree.

[Got-Boost?]

Ridiculous even

 

I changed retarded to ridiculous. Proof reading owns me...

[Nitrousbird]

People who use those places are failures at life. I am torn on legislation restricting their interest rate. One side of me say screw people to stupid/lazy to know what they are getting into. The other says these people are going to screw up even more if that interest rate is so unfairly high. But with a lower interest rate, will these people use these services even more?

 

You never see these places in nice neighborhoods...go to the ghetto, and there is a "loan shark store" on every corner.

 

What's interesting about those places is I never seem to hear about them being robbed. Obviously they have a good chunk of money in them.

[Conesmasher]

The amount of interest that people pay on borrowed money has a direct effect on how much of a surplus that same group has. This is why the federal government varies the amount of the federal interest rate. By lowering the rate, a surplus of available funds is created, allowing more money to be spent on things that are not interest. This is why our federal government has been lowering the rate recently.

 

However, with the recent situation of predatory lending (and other problems) creating financial hardships for most people, a lot of people in trouble either turned to companies charging very high interest, or their variable rate was changed. Even people who have never been irresponsible can have the interest rate that they pay affected by incorrect information on their credit reports or by selling of their debt to another company. This in turn has negated the federal rate cut, since companies can charge whatever rate they choose. No more additional money has been freed, and the economy takes a downturn. The "unintelligent" people that have fallen into this trap are, unfortunately, the biggest spenders in our economy, and therefore they have the largest influence on how much our money is worth. If this law were to pass, I believe we would see a largely positive effect on our economy.

 

While your argument seems to make sense on the surface, there is a lot more going on than we understand.

 

 

Very good response.

 

I think that there is a big debate out there about two sides of the "loan" coin. On one hand people tend to say it's predatory lending......and on the other, it's people who got into loans they couldn't afford.

 

I'd really like to find out how many people get taken, versus how many people take themselves. I think that this is where the debate lays.

 

I say that typically, it's people who make poor financial decisions......but I'm willing to also say that there is probably more shenannigans going on than most people know.