This has got to be the highest interest rate I've ever seen...

[bettymae1121]

My husband got "pre-approved loan offer" in the mail this afternoon. It's a check for $750.06 that if we cash, we then have to pay back at $55 a month. We have no interest in such a loan, but just for amusement I turn the page offer to see the loan terms, interest rate, etc. before putting it through the shredder.

The interest rate is 42.73%!!!! It would take 19 months, just over a year and a half, to pay this back.

I know it's "let the buyer (or borrower) beware" but I feel so bad for people who fall for these things. And it's sent out right before Christmas, when people are more apt to take an offer like this to buy their kids presents. In fact, part of the flyer that comes attached to the check says "Real Holiday Check".

I know, I know, personal responsibility and all that. Still, rates like this are insane!

 

[Mrs. Charming]

My husband got "pre-approved loan offer" in the mail this afternoon. It's a check for $750.06 that if we cash, we then have to pay back at $55 a month. We have no interest in such a loan, but just for amusement I turn the page offer to see the loan terms, interest rate, etc. before putting it through the shredder.

The interest rate is 42.73%!!!! It would take 19 months, just over a year and a half, to pay this back.

I know it's "let the buyer (or borrower) beware" but I feel so bad for people who fall for these things. And it's sent out right before Christmas, when people are more apt to take an offer like this to buy their kids presents. In fact, part of the flyer that comes attached to the check says "Real Holiday Check".

I know, I know, personal responsibility and all that. Still, rates like this are insane!

OMG!!

 

[S. C.]

 

[allison443]

My husband got "pre-approved loan offer" in the mail this afternoon. It's a check for $750.06 that if we cash, we then have to pay back at $55 a month. We have no interest in such a loan, but just for amusement I turn the page offer to see the loan terms, interest rate, etc. before putting it through the shredder.

The interest rate is 42.73%!!!! It would take 19 months, just over a year and a half, to pay this back.

I know it's "let the buyer (or borrower) beware" but I feel so bad for people who fall for these things. And it's sent out right before Christmas, when people are more apt to take an offer like this to buy their kids presents. In fact, part of the flyer that comes attached to the check says "Real Holiday Check".

I know, I know, personal responsibility and all that. Still, rates like this are insane!

It reminds me of people that rent a television from Rent a Center or a place like that. They pay $100 per month to rent a tv...if they just saved that $100a month, they could buy a tv in a few months.

 

[It'sWDW4me]

 

[Shelly888]

That is just wrong on so many levels. That is disgusting and truly unbelievable.

 

[It'sWDW4me]

It reminds me of people that rent a television from Rent a Center or a place like that. They pay $100 per month to rent a tv...if they just saved that $100a month, they could buy a tv in a few months.

But if you offered that suggestion, they'd look at you as if you had lost your mind! Go a few months without TV?!?!?!?!?!?!

 

[MrsPete]

This should be illegal.

As for the TV, when I went away to college, I wanted to buy a TV for my room. I saw advertisements for $15 or $25/week, and that sounded pretty good . . . until I went down to the store and did the math to figure out the final purchase price. Wow. I didn't take that deal.

Do you know you can even "rent to own" tires? We were out at Walmart one day, and I commented to my friend, "Who'd want to rent tires?" She laughed and explained to me that it's the same thing as the rent-to-own furniture and other stuff. It took me a minute to "get it" because it's such a stupid idea.

There's a whole industry out there that takes advantage of the poor and ignorant.

 

[cm8]

This should be illegal.

As for the TV, when I went away to college, I wanted to buy a TV for my room. I saw advertisements for $15 or $25/week, and that sounded pretty good . . . until I went down to the store and did the math to figure out the final purchase price. Wow. I didn't take that deal.

Do you know you can even "rent to own" tires? We were out at Walmart one day, and I commented to my friend, "Who'd want to rent tires?" She laughed and explained to me that it's the same thing as the rent-to-own furniture and other stuff. It took me a minute to "get it" because it's such a stupid idea.

There's a whole industry out there that takes advantage of the poor and ignorant.

you can say that again

 

[mickaholic4077]

Okay, I'll bite-There's a whole industry out there that takes advantage of the poor and ignorant. (j/k-trying to inject some levity in a sad topic)

 

[Purseval]

Okay, I'll bite-There's a whole industry out there that takes advantage of the poor and ignorant. (j/k-trying to inject some levity in a sad topic)

No, there is an industry that makes money loaning to people who have a proven history of being bad credit risks. Good for them. Let them soak those losers for every penny they can get because the only way they got themselves in that position was by defaulting on decent cards, which raises the rate on all of the good credit users. Let them suffer, they earned it.

I know it's "let the buyer (or borrower) beware" but I feel so bad for people who fall for these things.!

Don't feel bad for them feel bad for yourself. The high default rate makes borrowing way more expensive for good borrowers than it should be.

 

[dbarker]

That could possibly be a case of usury, which is illegal. Please send a copy to your local District Attorney. That way, if it is illegal, they can take action.

 

[GemmaPixie]

We have a "short term" loan company here that advertises on TV a lot- they claim to pay your bills, get you money fast etc. They say its only to be used short term but there is nothing to ensure everyone doesn't have this loan for too long.

The interest rate: 2689%!!!!!!!!

(not sure I can post the website here to prove this but you can search short term loans)

 

[GingerJay]

OUCH!!! Makes me so sad that people fall for these things, too

 

[LAH LAH]

Wise money use is something I really worry about for my son when he moves out on his own. He has a functional autism. Insanely high IQ with very little common sense.

He would think these people were being so kind and doing him a favor. He is only 13 but I am already trying to pound into his head that a credit card is not free money. It has been 2 years and I think he is starting to get that concept.

I never even thought about educating him on these scams.

Operation "no high interest rate scams" here we come

 

[aprilgail2]

I was watching TV at work the other day and this commercial came on--I had to write the website down because the commercial was so weird....it was a native american guy and he was advertising some money lending company....but he said something like "sure the money is expensive" .... well here is that website---check out the "rates"

www.westernsky.com/

 

[Cheshire Figment]

The following are two of the terms. Note the $75 fee is in addition to the 139% APR.

The interest rate on our loans is 135% with an APR of approximately 139%. Borrowers may prepay their loans at any time without penalty. There are no upfront fees. If you are approved and your loan is funded, we will collect a $75 loan origination fee from the proceeds of the loan.

All loans will be subject solely to the exclusive laws and jurisdiction of the Cheyenne River Sioux Tribe, Cheyenne River Indian Reservation. All borrowers must consent to be bound to the jurisdiction of the Cheyenne River Sioux Tribal Court, and further agree that no other state or federal law or regulation shall apply to this Loan Agreement, its enforcement or interpretation. The loan agreement contains an agreement to arbitrate all disputes in which borrowers agree to waive their right to a jury trial, to have a court decide any dispute, and to participate in a class action lawsuit, and to certain discovery and other procedures that are available in a lawsuit. If you do not wish your account to be subject to this arbitration agreement, you must advise us in writing. It is not sufficient to telephone us. we must receive your letter or e-mail within sixty (60) days after the date your loan funds or your rejection of arbitration will not be effective. in the event you opt out of arbitration, any disputes hereunder shall nonetheless be governed under the laws of the Cheyenne River Sioux Tribal Nation.

 

[8esther8]

"The interest rate on our loans is 135% with an APR of approximately 139%. Borrowers may prepay their loans at any time without penalty. There are no upfront fees. If you are approved and your loan is funded, we will collect a $75 loan origination fee from the proceeds of the loan.

All loans will be subject solely to the exclusive laws and jurisdiction of the Cheyenne River Sioux Tribe, Cheyenne River Indian Reservation. All borrowers must consent to be bound to the jurisdiction of the Cheyenne River Sioux Tribal Court, and further agree that no other state or federal law or regulation shall apply to this Loan Agreement, its enforcement or interpretation. The loan agreement contains an agreement to arbitrate all disputes in which borrowers agree to waive their right to a jury trial, to have a court decide any dispute, and to participate in a class action lawsuit, and to certain discovery and other procedures that are available in a lawsuit. If you do not wish your account to be subject to this arbitration agreement, you must advise us in writing. It is not sufficient to telephone us. we must receive your letter or e-mail within sixty (60) days after the date your loan funds or your rejection of arbitration will not be effective. in the event you opt out of arbitration, any disputes hereunder shall nonetheless be governed under the laws of the Cheyenne River Sioux Tribal Nation."

All I can say is "wow". Even if you opt out of arbitration, it will be under their laws....

 

[Colleen27]

No, there is an industry that makes money loaning to people who have a proven history of being bad credit risks. Good for them. Let them soak those losers for every penny they can get because the only way they got themselves in that position was by defaulting on decent cards, which raises the rate on all of the good credit users. Let them suffer, they earned it.

Excuse me? Have you seen the rates on cards being offered to people with no/minimal credit history these days? You don't have to have any history of defaults to end up paying 40% interest for the privilege of having a card to build a credit score these days. A college-aged friend of the family recently got his first card, the same ones that they were offering with 0% teaser rates and no fees when I was in college. His rate? 37.99% and a $50 annual fee. But he took it, because a credit score is so important to someone just starting out that passing on the whole mess really isn't an option, not if he hopes to have an apartment or a home eventually.

 

[hambirg]

Ugh! I'm not sure how they get away with it not being loan sharking. I bet Vinnie down the block is cheaper.

And I've always thought the whole rent-to-own thing was nuts. But then I ran into people who really only look at it from a what can they afford on a week to week basis. Really sad.