Payday loan-check advance business questions.

[fordmantpw]

Fordman says: "Why not? It's a service you perform to help someone out." Well bless his heart, helping all those people! Although some would call it predatory lending. What's the business model say: 250%, 350% 400% APR? (Although maybe that's not fair cause they're short term loans)

Yep, because he stands outside the door with a gun and forces people to borrow money from him.

I agree the rates are very high, and I would go through great lengths to avoid it, but how can you say he is preying on people? Just because they can't do better elsewhere? Or refuse to try?

 

[CobyRupert]

Hey, if you can take advantage of the ignorant and sleep well at night, have at it. I'm not the final judge.

 

[brain55]

I've used one of these services before many years ago now. The interest was about 400% apr. I think I wrote them a $200 check and got $165 in cash or somewhere around that. Yes it does create a vicious cycle if you don't get ahead enough to get out of it. I think it took me a couple months of writing them that check every two weeks basically buying the previous check back minus their fee.

Since you are writing them a check, when they try to cash that check and you have nsf, it is considered check fraud, they have the full backing of the courts to come get that money. They also verify employment before making the advance, so I'm sure they will almost immediately attach a person's wages if the check doesn't clear.

 

[/pine]

IMO...this is very much not the place to ask for advice or opinions on starting a business of this type...

 

[kenmac]

This type of business thrives in a poor economy, and your not going to get much worse than the Appalachian coal fields right now..

Just what these poor people need. Someone to take advantage of them. Come on in I'll help you out while you're out of work. I'll only charge you intrest in what ever amount the law allows :thumbsdown:

 

[Rollcenter]

Just what these poor people need. Someone to take advantage of them. Come on in I'll help you out while you're out of work.

While we are at it,

Hospitals- taking advantage of the sick.
Pepsi-taking advantage of the thirsty.
Piggly Wiggly- taking advantage of the hungry.
Or maybe a PLUMBER taking advantage of a person with leaky pipes!

Don't think I will, or could, force ANYONE to use this type of lending service, that's 100% up to them!

 

[Midniteoyl]

While we are at it,

Hospitals- taking advantage of the sick.
Pepsi-taking advantage of the thirsty.
Piggly Wiggly- taking advantage of the hungry.
Or maybe a PLUMBER taking advantage of a person with leaky pipes!

Don't think I will, or could, force ANYONE to use this type of lending service, that's 100% up to them!

God forbid you have that leaky pipe at night or on a weekend! Talk about 'taking advantage'...

 

[allen6634]

i made the mistake by getting involved with payday loans. from my position it isn't good but im sure the owner. would see this differently,i have a $500 loan ,it costs me 89 for the loan , but being that i have added that extra debt to my budget , it is impossible for me to pay the loan off in full witch would cost me $589, i have been paying this for close to 2 years, but then i have used the same place with that same amout of moneys, mainly because the banks around hear don't do loans that small, my credit isn't up to par, so i use the payday loan place, if and only if i need to get cash fast, ( walk in wright check walk out). im on a fixed income now so the payday loan was bad for me. i think that there is a great money maker.

 

[allen6634]

nothin wrong with making a living.

 

[300UGUY]

I'd say it seems to be a tough biz. Probably have to be there a lot of hours. Anytime you have folks handling cash, it can get messy.