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Post by "Pop" Stran on Jul 23, 2003 21:53:53 GMT -5
Technically; These leeches are within the law, and they provide a service of value...technically.
Simply put: They will advance you cash on your next paycheck, and charge interest on this short-tern loan. So far, so good, right?
Problem #1: Should your budget already be so tight that you need half of your paycheck 3 days early just to survive, then paying them a fat fee is not very wise.
Problem #2: I've gotten too many emails from one of these services lately, so I looked into it as research for this board...and they charge 25% on a $100. loan! TWENTY FIVE PERCENT!! I know of at least 3 loan-sharks in Baltimore who charge less!
Regulated lenders have a cap on the amount they are allowed by law to charge a customer...so how do these slippery pawnshop wannabes slide in under the radar?
In a dire emergency, most of us will do whatever we have to in order to escape intact...and these online loansharks are definately a last resort.
Taking a loan on next week's pay, when money is already short, is just another example of,"Out of the frying pan and into the fire".
...or as my dad used to say; "If you suddenly find yourself in a hole...Stop Digging!"
Avoid these offers.
Thanx for your time, JB.
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Post by "Pop" Stran on Feb 14, 2004 22:27:47 GMT -5
Local and Federal lawmakers are putting their heads together to put these scammers out of business.
Part of a recent press release by the FTC mentioned an "increased interest" in payday loan companies and promised further investigations into this field.
With any luck, a lot of good people in tight spots will be spared the pain that payday loans are guaranteed to provide.
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