Is there any difference between loan sharks of old times, and the modern banks who charge 20% interest and hit you with monthly charges, late fess and penalties? How do these banks get away with it? Do they bribe the lawmakers to look the other way ?
2007-02-04 07:22:06 · 6 answers · asked by kenneth h 6 in Business & Finance ➔ Personal Finance
The difference is that banks, credit card companies, and pay day loan places continue to contribute to government campaigns and use the money we pay to send lobbyist into Washington to fly politicians to exotic locations. The United States way of life purchased and funded by big business.
The only way to change it is to make our leaders responsible to us taxpaying citizens again. We can only hope it happens in our lifetime.
2007-02-04 07:32:27 · answer #1 · answered by Anonymous · 5⤊ 0⤋
Loan sharks will charge way more than 20%. Typically, your interest rate is tied into your credit score. The better your score, the better rate you get. The banks are doing this to offset many bad credit decisions they made in the past and to coax people to maintain their accounts in a satisfactory manner. Like paying on time, not going over the credit limit, etc. If you have a good standing account, in time you can ask for the rate to be reduced. You would be surprised that this can be accomplished usually by a phone call, especially if you tell them you will close the account if they don't extend you a better rate.
2007-02-04 07:30:14 · answer #2 · answered by biker_beeotch 2 · 0⤊ 0⤋
Our lawmakers hung us out to dry when they passed the new bankruptcy bill last year.
Banks can now charge you up to 40% interest if you are late with just ONE payment.
In answer to your question, the difference is, loan sharks used to pay a few cops to look the other way, banks spend billions of dollars "courting" Congress (can you say lobbyist money? I knew you could) legally to screw us over.
Do you realize that overdraft fees have gone from $5-10 dollars in 1994 to over $39 now? Thieves
Legal thieves is all they are.
2007-02-04 08:11:38 · answer #3 · answered by Gem 7 · 0⤊ 0⤋
Yes, the interest rates charged by modern-day credit cards and banks are more or less usury. Thank the great state of South Dakota for loosening laws to allow credit card companies to locate there.
A bank won't bust your kneecap, but that's about the only difference.
2007-02-04 07:26:41 · answer #4 · answered by Brad L 4 · 1⤊ 0⤋
The banks wont break your knees when you do not pay up..
If a bank is looking to charge you 20% on a loan then your credit must really suck...Maybe you should do some shopping around, or try paying your bills on time..then you can get loan rates at < 7%..
2007-02-04 07:44:40 · answer #5 · answered by m34tba11 5 · 0⤊ 0⤋
This is a hell of a good question. It's amazing the interest rates charged to unsavvy individuals. Myself included.
The difference if there is one, is probably minute.
2007-02-04 07:27:15 · answer #6 · answered by cleo_michelle73 2 · 0⤊ 0⤋
The only difference is that they wear nice suits and collect through the legal system.....
2007-02-04 07:26:16 · answer #7 · answered by Cheanea 3 · 1⤊ 0⤋