intrest rates are as high as 800%..I think this is loansharking regardless if the victun is in the military or not.But i have heard that you dont have to pay them back because when they loaned you the money they knew you did not have the money to pay------ i dont know if this is true ,maybe some legal person could help ...
2006-10-31 06:54:32 · 10 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
I hate those places. Some states have made it illegal to do loans of this nature.
Take Care
2006-10-31 06:56:04 · answer #1 · answered by Anonymous · 2⤊ 1⤋
I think the military is trying to make a move to protect enlistees from this kind of thing... there is an alternative... Pioneer Military Loan. The interest rates are not NEARLY 800% I think more like 20% wich isnt great but at least it somewhat fair. We had an emergency and got approved in less than 2 days. They cater to the military community and so far for us they seem to have done a good job... they will take payment in the form of miliary allotment as well... if you go to a shady place to get money and agree to pay 800% interest... then you've got problems beyond financial issues.
But certainly that kind of thing should be illegal, i agree with that 100%!
2006-10-31 07:00:40 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are some restrictions on the amount of interest they can charge, and they have to clearly state certain items, but as far as the business goes they are perfectly legal. It is unfortunate that anyone has to use these places, but it is just like using a credit card. They are both bad and should be avoided, because you will end up paying so much more than the money you received, however, that is the price for instant cash. It's sucks even more that it is those who are already hurting for money that get pulled in. Good luck.
2006-10-31 07:02:00 · answer #3 · answered by straightup 5 · 2⤊ 0⤋
I don't believe they're "taking advantage" of anyone. If you can read the contract before you sign, you know what you're getting into. NOBODY is forcing you to deal with the fast-cash place. Go to a real bank, save up for what you want, use a regular credit card, or budget better.
No, you can't default on the loan becase the bank somehow is supposed to know you can't pay. When you sign the contract you're telling the bank you can and will pay back the loan. It's up to YOU to decide if you can afford it.
And why do you think the interest rates are so high in this kind of business? Because they deal specifically wiht people who can't control their spending in the first place and who don't care if their account goes to collections.
Your credit history is your responsiblity and nobody else's.
2006-10-31 07:06:51 · answer #4 · answered by Funchy 6 · 0⤊ 0⤋
Know what? It is loansharking, made legal by politicians who don't seem to give a dam. I agree with you., except the non-payment part. They WILL collect.
The real problem is all the people who either never learned, or are too undisciplined, to meet a budget. Supply & demand. If we weren't so careless about managing our money, there would be no market for Payday Advance or Pawnshops. They would all go broke.
And don't tell me it is impossible to live on what they make. There are a lot of people living on less than $1000/mo. in this country who get by without borrowing on a regular basis. I am one of them, & have been for almost 3 years.
2006-10-31 07:03:20 · answer #5 · answered by bob h 5 · 2⤊ 0⤋
The appropriate term for this is Deferred Presentment Services, commonly known as payday advance businesses. I manage a payday advance business and get so tired of the BS media!
Lets shed some truth into all of this ignorance:
1. Interest rates are 11-15 % based on the total of your loan (This is a flat fee) . For example, a $100.00 loan would cost you $115.00 to repay. It does not matter if it is a one week loan or one month, it is the same. The lowest interest rate is on the $500-$600 advance, which would be $565.00 for a $500.00 advance.
2. Payday advance businesses do not "target" military personnel, or any other persons. We provide a quick alternative for emergency funds on a short term basis.
3.Clientele are all fully functioning adults whom are fully aware of the agreement which they are entering, and that the payday advance business is not intended for long term financial needs.
4. Money that is loaned does have to be repaid, each transaction requires that a "Truth-in-Lending" form to be signed, a personal check for the amount of the loan, plus the fee is held as security. If a client defaults on their payment, the check is then deposited and funds are collected. In the event that a check is returned unpaid, and all attempts to collect in store fail, the client is subject to "Michigan Bad Check Law", or which ever state the business operates in. Deferred Presentment Service Businesses may collect civilly, but may not prosecute criminally. In other words, we may use all means to collect money owed, but we may not jail a person for writing a bad check.
Military personell would be some of the hardest people to collect funds from, GOVERMENT EMPLOYEES ARE EXEMPT FROM PAYROLL GARNISHMENT if they do choose to defraud the business.
5. Upon application the client must provide proof of income, proof of a valid checking account, drivers license, social security card and additional proof of address.
THE MOST WE WILL LOAN A CUSTOMER IS 40% OF THEIR NET PAY.
2006-10-31 07:16:59 · answer #6 · answered by kandekizzez 4 · 0⤊ 0⤋
It's not just the military it is any one who uses them. it is horrible American may be free interprise but there should be limits. I wish they would shut down places like that ppl survived without them before ppl can do again. And as for % of what they charge it is not 20% 20-20 did a show about them and they were charging over 300% and more.
2006-10-31 07:04:45 · answer #7 · answered by CHAEI 6 · 1⤊ 1⤋
Republicans actaully had an opportunity to regulate these places, there were several amendments to the Bankruptcy bill which would have prevented victimiztaion of the military, but the Republicans voted against that amendment.
2006-10-31 06:58:57 · answer #8 · answered by Anonymous · 1⤊ 0⤋
They are definitely loan sharks!!! They take advantage of people that are in desperate times. They can sue you but most of them won't. If they choose to sue you, you will either have to pay a lawyer to fight them or they will win and garnish your wages. If you have a bunch of these loans, you may consider filing for bankruptcy.
2006-10-31 07:03:07 · answer #9 · answered by Nunya 5 · 2⤊ 1⤋
yes they need to be put out of business.
The same is true on those payday loan places that hurt everyone else also
2006-10-31 07:05:17 · answer #10 · answered by Anonymous · 2⤊ 1⤋