Don't know whether to be proud or ashamed of by little Bro

[Mark R]

Well, it looks like he's getting a stable job at last.

When I enquired he laughingly told me he was a salesman dealing in 'scumbag loans'. He clarified that this meant loans with an APR of greater-than 100%. He even went through a typical conversation:

Punter: I'd like to borrow £500
Salesman: OK. That'll be £67/month for 1 year
P: Jesus. That's a disgrace. I'm never paying that. I'm going to go to someone else.
S: OK - go to someone else. I'll speak to you tomorrow - best time is between 9 and 11 am.

He knows full well that these people are so desperate, and have such bad credit - that noone else will offer them anything, and they will without fail ring back and arrange the loan later in the day.

To me it just seems very unethical to extend further debt to people who have already had so much difficulty from it.

 

[Scouzer]

Where money is to be had, Americans will be there to take.

(Or most nationalities for that matter)

 

[MichaelD]

Companies have been doing it for decades..."legal loansharking."

You're 100% correct; people that go to places like the one your brother works for are so desperate and have such bad credit that they can't get anything else, anywhere.

I'll bet that this company requires you to fill out a big form listing things of value you own, like a TV, refrigerator, washer, power tools etc. Right? When you sign the form, you consent to legal seizure of said assets should you fail to pay on time.

Your brother is making a buck, legally. More power to him.

 

[So]

Originally posted by: MichaelD
Companies have been doing it for decades..."legal loansharking."

You're 100% correct; people that go to places like the one your brother works for are so desperate and have such bad credit that they can't get anything else, anywhere.

I'll bet that this company requires you to fill out a big form listing things of value you own, like a TV, refrigerator, washer, power tools etc. Right? When you sign the form, you consent to legal seizure of said assets should you fail to pay on time.

Your brother is making a buck, legally. More power to him.

Agreed, I wouldn't hold it against him for doing such a thing. I personally wouldn't want to do that, just because I'd feel bad about it, but if I had no other options, I'd do it. It sure as hell beats being a janitor!

 

[KK]

Originally posted by: So

Originally posted by: MichaelD
Companies have been doing it for decades..."legal loansharking."

You're 100% correct; people that go to places like the one your brother works for are so desperate and have such bad credit that they can't get anything else, anywhere.

I'll bet that this company requires you to fill out a big form listing things of value you own, like a TV, refrigerator, washer, power tools etc. Right? When you sign the form, you consent to legal seizure of said assets should you fail to pay on time.

Your brother is making a buck, legally. More power to him.

Agreed, I wouldn't hold it against him for doing such a thing. I personally wouldn't want to do that, just because I'd feel bad about it, but if I had no other options, I'd do it. It sure as hell beats being a janitor!

Oh, I see you have a problem with janitors.








KK

 

[Monel Funkawitz]

Originally posted by: Scouzer
Where money is to be had, Americans will be there to take.

(Or most nationalities for that matter)

Hey dork, we don't use Brittish Pounds Sterling.

"Punter: I'd like to borrow ----->>>£500<<<-----"

 

[vi edit]

Oh, I see you have a problem with janitors.

Nah, it's just that a lot of us would rather be a piece of sh!t instead of having to cleaning it off of bathroom walls.

 

[Turkish]

Originally posted by: Monel Funkawitz

Originally posted by: Scouzer
Where money is to be had, Americans will be there to take.

(Or most nationalities for that matter)

Hey dork, we don't use Brittish Pounds Sterling.

"Punter: I'd like to borrow ----->>>£500<<<-----"

so? we don't care.

 

[RossMAN]

A job is a job.

 

[isaacmacdonald]

That is a fairly slimey job. All things legal are not necessarilly good. I would venture a guess that using indigence/hunger to extort ludicrious interest rates from customers would probably qualify as one of the less moral legal activities.

 

[Brutuskend]

And car salesmen, don't forget CAR SALESMEN!

 

[KingNothing]

Originally posted by: Monel Funkawitz

Originally posted by: Scouzer
Where money is to be had, Americans will be there to take.

(Or most nationalities for that matter)

Hey dork, we don't use Brittish Pounds Sterling.

"Punter: I'd like to borrow ----->>>£500<<<-----"

What about British slang?

 

[Hector13]

isn't this actually illegal in a lot of states? Also, I think the APR that can be charged is legally limited in the US (in the example above, I don't think 67 pounds a month for a 500 pound loan is over 100% APR, btw).

 

[element]

Mark R, I'm ashamed at both you and your bro for not knowing what 100% APR means. Hector is right, 67/month for 12 months is not 100% APR on a 500 loan.

 

[Hector13]

Originally posted by: element®
Mark R, I'm ashamed at both you and your bro for not knowing what 100% APR means. Hector is right, 67/month for 12 months is not 100% APR on a 500 loan.

of course, he may have meant that 67/month was just the interest payments :Q

 

[element]

Originally posted by: Hector13

Originally posted by: element®
Mark R, I'm ashamed at both you and your bro for not knowing what 100% APR means. Hector is right, 67/month for 12 months is not 100% APR on a 500 loan.

of course, he may have meant that 67/month was just the interest payments :Q

Then he only has to pay the interest back and not the principle? Or perhaps the principle up front? I'll leave it to you to figure out the irony of asking for a loan when you are able to pay the principle up front.

 

[Hector13]

Originally posted by: element®

Originally posted by: Hector13

Originally posted by: element®
Mark R, I'm ashamed at both you and your bro for not knowing what 100% APR means. Hector is right, 67/month for 12 months is not 100% APR on a 500 loan.

of course, he may have meant that 67/month was just the interest payments :Q

Then he only has to pay the interest back and not the principle? Or perhaps the principle up front? I'll leave it to you to figure out the irony of asking for a loan when you are able to pay the principle up front.

uh,... no, like most loans, the principle would be paid at the end.

 

[SaigonK]

Bah hes just making $$

 

[Mark R]

(in the example above, I don't think 67 pounds a month for a 500 pound loan is over 100% APR, btw).

I get 157.15% APR on my calculations. If I've made an error, I'd be very grateful if you could point it out.

 

[dman]

Originally posted by: Mark R

(in the example above, I don't think 67 pounds a month for a 500 pound loan is over 100% APR, btw).

I get 157.15% APR on my calculations. If I've made an error, I'd be very grateful if you could point it out.

Actually, if you calculate 500 at 100% apr the payments come out to 67/mo. Sum of all payments is 809.96.

Compare that to a high creditcard rate of, say, 24.99%: MoPayment: 47.52, Sum of all Payments 570.23.

Here in the states (most of 'em), as far as I know, that 100% rate would be illegal. There is a cap on allowable interest and fees, if you exceed that as a lender the buyer doesn't have to payback the loan and other bad things can happen to the loanshark.

Of course, the loanshark probably knows it's illegal and will send folks to break your kneecaps if you don't pay it back... so... it's probably a good idea not to try and use the law against them.

 

[element]

Originally posted by: Hector13

Originally posted by: element®

Originally posted by: Hector13

Originally posted by: element®
Mark R, I'm ashamed at both you and your bro for not knowing what 100% APR means. Hector is right, 67/month for 12 months is not 100% APR on a 500 loan.

of course, he may have meant that 67/month was just the interest payments :Q

Then he only has to pay the interest back and not the principle? Or perhaps the principle up front? I'll leave it to you to figure out the irony of asking for a loan when you are able to pay the principle up front.

uh,... no, like most loans, the principle would be paid at the end.

I've never heard of paying the principle seperately at the end. Always you have to pay everything in the monthly payment. Downpayment up front of course. This goes for mortgage, car loan, etc.

 

[Hector13]

Originally posted by: element®

I've never heard of paying the principle seperately at the end. Always you have to pay everything in the monthly payment. Downpayment up front of course. This goes for mortgage, car loan, etc.

what you are thinking of is "self amortizing" loans (as you said, like a mortgage). If you look at a traditional loan (something like a bond), interest payments are made during the life of the loan and the principle is paid off at the end.

 

[Nitemare]

I had to do the Check N to cash one time and it is state law that the interest rate is stated on the loan application...it was over 1600%