Discussion in 'Too Hot for Swamp Gas' started by WarDamnGator, Feb 6, 2019.
"But I don't care what he says, I only care what he does"...
They are also the ones who default the most and quickest. Many of them get the $500 and never pay a nickel of it back and never intend to
And if you read the OP, the purpose of the Obama regulation was the lenders had to verify the person borrowing had income and could pay the loan, which theoretically would have caused less defaults and allowed the lender to lower the interest rate for the legitimate barrowers... How was that a bad idea, other than "But Obama did it"?
Maybe off-topic, here's another regulation that the Trump administration is rescinding to make it easier for big business to shaft the vulnerable. When Trump said he likes the less educated maybe it wasn't just because they voted for him but also because they represented a pool of potential victims to his fellow con artists.
Trump administration plans to drop Obama-era rule aimed at abuses by for-profit colleges
And it's not just consumer protection where the adverse effects of Trump's de-regulation will be felt
Workers’ health, safety, and pay are among the casualties of Trump’s war on regulations: A deregulation year in review
When Trump brags about repealing regulations as he did in the SOTU address, he's really saying that the welfare of big business takes precedence over the welfare of the average American, and while there are regulations that should be rescinded or revised, the right way to do it would have been with a scalpel rather rather than meal axe.
Nobody is forced to use these companies.
Same as the Rent-A-Center scam.
Nobody is forced to give their credit card number to some foreign guy on the phone saying he can fix their computer. Maybe trump can make that easier for people too.
The government drove the local banks out of the small loan business back well before Trump and Obama (I'll put both in there to stay politically neutral.)
The point is why does the Government have to be so many people's protector? Getting suckered on a ransomware call can happen easy.
Pay day loans.... people aren't walking by and accidently borrowing money. They go there with the intent to do so.
This is the “she was asking for it by wearing a short skirt” defense.
Because here in the year 2019 we still have bad people looking to gain by damaging others. Why does the government have to have a military? Why does a government need to have police and fire protection? Why do we even have laws in the first place? People aren't driving/walking by houses and "accidentally" breaking into them. People aren't "accidentally" submitting fraudulent documents to induce lenders to lend our money for their own real estate scams. People aren't "accidentally" importing herion and other people aren't accidentally buying it either. If the government isn't going to protect us, who will? We clearly have shown as a species we don't behave well and play nice so we have to do something.
You can say that about a lot things the government regulates or has made illegal, even if they are "victimless crimes" ...
Prostitution .... people aren't walking by and accidentally paying for sex. They go there with the intent to do so.
Crack .... people aren't walking by and accidentally smoking a bowl. They go there with the intent to do so.
Illegal gambling .... people aren't walking by and accidentally placing a bet. They go there with the intent to do so.
It makes no sense that "loan sharking" is illegal, and the Florida Usury law supposedly caps loans at 18%, but corporations are openly charging 400%+ ... it makes no sense to begin with.
Under Florida statutes, usury is defined as the charging (whether paid or not) of interest that exceeds 18 percent on loans, lines of credit, advances of money or any obligation of amounts up to $500,000, and that exceeds 25 percent for transactions involving amounts totaling more than $500,000. Loans with an interest rate between 25.01 percent and 45 percent are criminally usurious misdemeanors, while a rate above 45 percent is punishable as a third-degree felony. The challenge with avoiding a potentially usurious transaction lies in the intricacies found in the agreement, the characterization of the various fees reflected in the agreement, and, in some instances, the determination of whether the agreement is intended as the acquisition of an equity interest in the venture or the issuance of a debt obligation.
Is Your Loan in Violation of State Usury Laws? by By Joel Glick, CPA/CFF, CFE - Berkowitz Pollack Brant Advisors and Accountants
Small bank loans? I believe those are called credit cards, no? Can also get cash advances, lines of credit, home equity loans, etc from banks.
I don't think banks were ever in the business of 400% APR payday loans. These pretty much serve no legitimate purpose other than to take advantage of people who are not credit worthy. Charging an uncreditworthy person 400% does nothing but put them even deeper in the hole. 46% of people who take out a "Payday loan" default on them. WTF kind of business is that? At 400% APR, I'm actually surprised it is "only" 46% default rate.
Study finds high default rates in payday lending
And so you think that people would be taking pay day loans if they weren't constantly pushed through television and radio commercials? It's somewhat like the subprime mortgage loans. Maybe the borrowers should have been more responsible and the read the "fine print" which disclosed that the loans were exploding ARMs with the potential for monthly payments to double or even triple. The reason for the subprime loan crisis wasn't just the irresponsibility of borrowers and ultimately investors who ended up with securities backed by the subprime loans, it was because the subprime mortgages as well as the payday loans were/are aggressively marketed to gullible individuals. Essentially lambs being let to the slaughter, not unlike the students of Trump University who thought that they would become successful real estate investors because the "school" had Trump's name on it.
I think people should be responsible for their own decisions. if you don't have the sense to realize buy a house with an ARM, or that when you buy that house the Taxes most likely will go up you should buy a house. There are plenty of ways to educate yourself in those areas. I did it when I was 22 years old. It's not rocket science.
If someone is purposely lied to that a different story, more than a few Real estate agents don't give a shit if you can keep your house they just want the sale.....
Decent societies generally put systems in place to save the dumb from predators. At a bare minimum, they shouldn't tee up victims for said predators with friendly practices.
And if there are laws against it the AG in every state needs to crack down on them.
True, but how much of a nanny state do you want. Is the Gov responsible for every little decision we make?
Should the Gov limit how much food people buy... Obesity costs all of us Billions every year, same with smoking. That's a far bigger negative on the human condition than crazy rates on payday loans. It also affects the poor are much higher rates...… we all should be outraged.
There were points in my life where I was both obese and was dealing with payday loans (at the same time). The payday loan situation caused me way more stress on a day-to-day basis than the 99 cent menu at Mickey D's ever did. Also, you can start eating right and exercising any day. It's way harder for the poor to dig themselves out of financial holes than waistline ones.
If the pay loan places aren't breaking any laws where is the issue then? There are dozens of things that "harm" us far worse then crazy high interest rates which people aren't getting tricked into.
See my response to FS above.
The reason we don't let people get ripped off in this country is that why people may understand the TODAY ramifications of a bad choice, they don't foresee the TOMORROW problems they create.
Plus, wrong is wrong.