Payday Loans

[ShawnD1]

Way to try to take advantage of the poorest of your countrymen by the way, douchebag.

Stupid people hurt themselves. There are a few times where bad luck happens, but for the most part people are going to these places because they're just too stupid to deal with money. I dated this one girl who was so stupid that she didn't want a credit card but she had no problems getting a payday loan at more than double the interest rate.

 

[alkemyst]

So.. who exactly do you think gets a "payday" loan...

Upper class people who make 6 figures a year?

or low/middle class who can't even live paycheck to paycheck?

You may not open your business in a ghetto..

but the ghetto is what you will be doing business with.

That was ummm sort of his point.

Riff raff works there and probably gets paid there.

Personally if I was going to do this I'd just try for a casino first, then payday loan, then check cashing.

 

[TruePaige]

Stupid people hurt themselves. There are a few times where bad luck happens, but for the most part people are going to these places because they're just too stupid to deal with money. I dated this one girl who was so stupid that she didn't want a credit card but she had no problems getting a payday loan at more than double the interest rate.

1) Agreed, but it's like giving suicidal people a rope and chair.

2) That is pretty funny.

 

[ShawnD1]

I wonder what the world looks like through the eyes of stupid people. Credit cards are free money, "don't pay until..." means it's free, 20% interest means 0% interest, it's totally worth going into credit card debt just to get some kind of points, cheque cashing with a 3% fee is not a rip off at all.

That stupid girl I dated would also sign 3 year phone contracts to get a free phone. The terms of most phone contracts in Canada are something like a minimum of $30 per month and the cost of cancelation is.... you guessed it, $30 per month for all of the remaining months. 36 month contract = $1,080. Free phone is not free at all unless you were planning to use that provider anyway!

 

[keird]

Stupid people hurt themselves. There are a few times where bad luck happens, but for the most part people are going to these places because they're just too stupid to deal with money. I dated this one girl who was so stupid that she didn't want a credit card but she had no problems getting a payday loan at more than double the interest rate.

How long were you dating until you had teh buttsehks?

 

[thepd7]

So you entered into a mutually acceptable agreement, presumably knowing all the factors, yet they're ripping you off? You don't sound like someone I would want to be involved in business with TBH.

just because someone has no other choice means they have to be happy about it. If the only girls I can have sex with are horrible fat slobs then I don't have to be happy about it, just deal with it and get what I want as best I can.

 

[RedCOMET]

http://pics.bbzzdd.com/users/gorcorps/gayner-poser.jpg

That made my night. Thanks.

 

[nick1985]

For one thing, armed robberies are rare because no one has guns.

Thanks for the laugh

 

[Acanthus]

As far as im concerned they violate already existing usury laws but states don't properly enforce them.

The APR on those loans is often in excess of 100%, which is illegal in all 50 states.

 

[IronWing]

So you entered into a mutually acceptable agreement, presumably knowing all the factors, yet they're ripping you off? You don't sound like someone I would want to be involved in business with TBH.

And when one of your customers defaults on the loan you made, with full knowledge that the borrower would very likely be unable to pay it back, will you calmly accept the loss incurred due to your own greed as just another cost of doing business? Or, like so many bankers today, will you shriek in false moral outrage that you lost money on a bad bet?

Yes, you can enter this legal business and, if you are smart, you might even make some money for yourself but even if you do everybody will think you are a turd.

 

[boomhower]

They have outlawed them NC. Now every time you cross the boarder there are a half dozen within two miles of the state line.

I also second the suggestion of good security. One of my friends from college managed a payday loan place and was murdered leaving work one night. To this day it is still unsolved.

 

[shortylickens]

I would never use one, but from a business standpoint they seem to be a great thing. And in my town they pretty much only prey on illegal aliens so I got no beef with them.

I have no idea what it would be like to start one in New Zealand however. It seems to me you folks might not make as much use of that as the average lower class American.

 

[waffleironhead]

I am surprised that such a socially protective nation as NZ would allow these types of business to exist. They are designed to prey on the poor and clueless.

 

[Craig234]

Eh, you say taking advantage of, I say helping out. I fail to see how an agreement reached by two consenting adults leads to one taking advantage of the other.

That's a pretty socially immature view IMO. "I see you people whose water was poisoned, and I was driving through with a truckload of water. $10,000 a gallon, or one of your children. It's consensual."

I exaggerate the point not to say payday loans are that bad but to point out you seem to use this right-wing nonsense abiout 'consensual' in very unequal transactions.

In the robber baron era, the same claim was made that poverty wage 'contracts' with people who would otherwise starve were simply by consent. Society came to notice the power imbalance.

 

[slag]

I am surprised that such a socially protective nation as NZ would allow these types of business to exist. They are designed to prey on the poor and clueless.

The same is true of just about any credit card or lending institution that charges interest on the amount you borrow.

A payday check loan place is no different.

 

[Craig234]

The same is true of just about any credit card or lending institution that charges interest on the amount you borrow.

A payday check loan place is no different.

The difference is the annual interest rate.

 

[slag]

The difference is the annual interest rate.

True, but we all know the terms going into the contract and still do it. I have a mortage with my bank for my house and I knowingly entered into the contract. Is it stupid? You bet it is. Look at the amount of money I'm paying the bank vs the value of my house. Its insane how much the bank is making off me, but then again, they have risk they need to offset. Its the same with these payday loan places. They charge higher interest rates because the type of people who need the cash are much more likely to default on the loans and then tracking them down and getting them to pay is a huge hassle/cost.

I don't think I'd ever use one, but then again, its nice to know they are there should the need ever arise.

 

[waggy]

As far as im concerned they violate already existing usury laws but states don't properly enforce them.

The APR on those loans is often in excess of 100%, which is illegal in all 50 states.

not exactly true. for one the APR in goes from %600 to %1200 APR yearly.

they get away with it because the laws on short term loans were wide open. they could get away with charging whatever they wanted.

Last year (i beleive) they changed the law so short term loans had % limits. so what the loan shark places do? they made the loans between the short term and long term wich is still wide open.

these places only succeed because people think they need the money now and willing to pay another $300 in 3 weeks. Then find out they can't pay it so the extend it for another 3 weeks for another $300. then they default and lose a court case.

My wife's older sister fell into this mess. she had at one point 4 open "loans" wich was a total of $4k. she owed like $10k for it. she filed for bankruptcy and they were cleared.

 

[Newbian]

Couldn't you just offer a sheep mating service instead over there?

 

[IronWing]

Couldn't you just offer a sheep mating service instead over there?

That market is already saturated. He could could offer an emu mating service instead. It would be like wearing a feather boa.

 

[shortylickens]

Eh, you say taking advantage of, I say helping out. I fail to see how an agreement reached by two consenting adults leads to one taking advantage of the other.

If you honestly believe that then I say open up a business. The only thing preventing me from doing a payday loan scheme is my guilt. Since thats not an issue for you then you can easily make good money.

 

[sjwaste]

Eh, you say taking advantage of, I say helping out. I fail to see how an agreement reached by two consenting adults leads to one taking advantage of the other.

Look up the word usury. In fact, since you're in a commonwealth country, search your laws for it.

 

[IronWing]

OP, how much capital do you have to play with?

 

[dullard]

I don't know anything about New Zealand, but in the US, this is not an easy business to get into. True, if you have a good customer base, you can make easy money by keeping the poor poorer. But at least here, there are just too many payday type loan places. The number of customers each is thus too small for much profit.

I have a friend who owns a lot of business real estate. He now refuses to lease to any payday type loan places since they keep going out of business (meaning they back out of their deal with him without paying their lease and he has to go through all the expense again to market the place). He says the most common thing is that people sign a lease to get an address for the legal paperwork. But they never know how difficult it is to get through the legal hassles here in the US. So, they can't start business, and close before bringing in even a single dollar.

 

[Mike Gayner]

Look up the word usury. In fact, since you're in a commonwealth country, search your laws for it.

What? I'm an accountant so I'm already familiar with the word usury, though I don't think you are. I love it when people use this word - it's an easy way to identify someone as a lawyer, a pretentious dickscarfe or a clueless idiot. Are you a lawyer?