Payday loans

[Girlee]

Payday loans will be coming to an end in Arizona.
Their outrageous interest charged will no longer be legal here pretty soon.

What do you think of payday loans? and/or car title loans.

Are they a good or bad thing?

 

[RedDead1981]

What is a payday loan?

 

[ArnautDaniel]

A payday loan is a short term loan at high interest.

In effect they give you the loan and then they deduct the amount from your next paycheck.

The net effect is that since you are getting these types of loans you are having financial problems, but the high shortterm interest generally doesn't help you get out of those financial problems.

So you get payday loan after payday loan and lose a lot of money in the process.

I'm in favor of outlawing this sort of thing.

If you need a short term high interest loan, there are always loan sharks.

 

[Mela Monkey]

They are definitely something that should be avoided if possible :]

 

[lawtonfogle]

The problem is not that this type of thing exist, but that whom is targeted to. It is targeted to those it can attempt to take advantage of, and while it may be legal to take advantage of such people, it is in my own view not that different from getting a child to agree to some loan without fully understanding it. Especially since the child may be signing the loan mere to have money, while the adult who takes a payday loan is doing so because they honestly need (or honestly believe they need) the money.

At the heart of the issue lies the question, can one enter into a wrongful business dealing as long as all other parties enter willingly? For example, a millionaire who is dying of thirst in the desert, is it wrong to only offer him your water for half his fortune?

For me, the answer is yes due to the existence of the child. The fact that some entity cannot entered into business dealings due to circumstances invalidating their consent means I must be open for other circumstances. In the case of the millionaire, his consent to enter the business dealing would seem to be invalidated. Now, as the exact standard by which consent is invalidated... I'm still working on it.

 

[USincognito]

I understand the need for lenders of last resort (and even used on myself, 20 years ago when I was less savvy fiscally), but I wish they'd act like just that rather than like loansharks. 640% is just criminal IMO.

 

[GQ Chris]

They're definitely a bad thing.

 

[Yusuf Evans]

There are tons of these types of hustlers floating around military bases, and commanders are ordering their troops not to go through these sources for loans. It's sort of why each military branch has some sort of emergency relief organization, to assist those troops who need quick cash as they are in some sort of financial hardship.

 

[essentialsaltes]

Trump Makes America Great Again by providing ordinary folk better access to payday loans!
The Consumer Financial Protection Bureau has decided to reconsider a key set of rules enacted last year that would have protected consumers against harmful payday lenders.

 

[Trogdor the Burninator]

Zombie thread - ARISE!!!!!

Not that I don't see the relevance, I'm just impressed that you even managed to find this thread given you didn't post in it back then