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What do you think about payday loan places?

While out for dinner we got on the subject of them and just curious what others views are on them?

 

 
Charis76

Asked by Charis76 at 10:52 AM on May. 6, 2011 in Politics & Current Events

Level 23 (16,182 Credits)
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Answers (34)
  • 200% interest. How is that anything but predatory? And I say this as someone who worked for a predatory lender, but they put us to shame (our highest interest rate was 28%). At the same time, it does come down to personal responsibility. We used them to cash a check once, and the paperwork required was insane...for a bank issued check. When any kind of place hands you that much paperwork, it's a clue you should read all of it before you sign any of it.

    My boss' son got one because she kept yelling at him for asking for money (boss from the loan company, ironically), and he ended up owing over $1000 and facing a lawsuit on a $100 loan by the time he fessed up to her about it. She would've been better off giving him the $100 up front.
    NotPanicking

    Answer by NotPanicking at 2:16 PM on May. 6, 2011

  • Not good. The interest in sky high and from everything I've seen and heard about them, people usually get into such debt with them that they have a horrible time trying to get out of it.
    wildflowers25

    Answer by wildflowers25 at 10:53 AM on May. 6, 2011

  • I have a problem with them. You go in, you get the loan, the interest rates are so high that ok, you get your payday, but by the time you pay it off, you're going to be back in the situation you were in before - not having enough money to see you through to the next payday, and so you're in there again, needing more money...

    I agree with the military on this - military members are not allowed to go to payday loan places (if they do and they get caught they can get in trouble), because it's one step away from loansharking and it's a very financially dangerous path to start down.

    sailorwifenmom

    Answer by sailorwifenmom at 10:54 AM on May. 6, 2011

  • I think it's legalized loansharking. I understand why some people use them, but I hope I am never desperate enough to need them.
    hootie826

    Answer by hootie826 at 11:19 AM on May. 6, 2011

  • Would not touch them w/ 9 ft pole!!!
    SAHMinIL2

    Answer by SAHMinIL2 at 10:54 AM on May. 6, 2011

  • I think in general they are predatory. Then again, I have never had to use one and hopefully never will.

    QuinnMae

    Answer by QuinnMae at 10:55 AM on May. 6, 2011

  • they are strategically located where they will get the most business.
    jewjewbee

    Answer by jewjewbee at 10:57 AM on May. 6, 2011

  • ive never used them, but a friend of mine has. i was with her one day when she had to go pay them back, she seemed so stressed about it. it really doesn't help much, yea you get an advance and have the money right away if you need it, but you still end up with as much as you had before (if not less after interest) when you pay them back. i think its an easy way to fall into debt.
    tnm786

    Answer by tnm786 at 10:57 AM on May. 6, 2011

  • They are horrible places that take advantage of the poor and desperate. I personally knew a woman who lost her car at a title loans place because she got so tired of paying the interest she just let them take it.
    The interest rates are astronomical and I cannot abide usury (which is why I have no credit cards).
    MariAnKenobi

    Answer by MariAnKenobi at 10:58 AM on May. 6, 2011

  • I would never use one. The only difference between them in the mob is they won't break your legs if you don't pay.
    yourspecialkid

    Answer by yourspecialkid at 11:30 AM on May. 6, 2011