2007-03-23 14:36:18 · 3 answers · asked by janaschultz@sbcglobal.net 1 in Business & Finance ➔ Credit
If you ever add up the fees and interest from one of the PayDay loan places, it comes out to about 300% interest. Why anyone would ever get a loan from one of them is totally beyond me but people do it every day.
There actually are Usury laws by state but they're applicable to certain lenders. Banks have a totally different set of rules that apply to them. PayDay lenders charge loan fees and other "fees" and don't call it interest but when you add it all up, it comes out to a ridiculous amount of money you pay for the loan. If you borrow $100 from them and they charge you a $30 loan fee, to me, that's 30% interest but by calling it a fee, they can get past a lot of the regulations.
Here's a pretty good website that gives all the state maximum interest rates.
2007-03-23 15:00:19 · answer #1 · answered by Faye H 6 · 4⤊ 0⤋
Yes, in fact, some check cashing places that hold a check for up to two weeks before cashing it can charge the equivalent APR of SEVERAL HUNDRED PERCENT!
2007-03-23 21:40:28 · answer #2 · answered by JD_in_FL 6 · 0⤊ 0⤋
what bank are you using so i know never to use?
2007-03-23 21:45:04 · answer #3 · answered by who me? 5 · 0⤊ 0⤋