Loan Shark.com

So I'm sitting at home today, waiting on the plumber to come and replace my water heater. :( I'm watching Pinks, and a commercial for cashcall.com comes up. Their tagline is "We'll loan you the money with no collateral, because we trust you!" :roll:

Anyway, the fine print rolled up and I froze it, just for kicks and giggles. I damn near fell of the couch when I read it -

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The APR for a typical $2600 loan is 99.25% with 42 monthly payments of $216.55 plus a $75 origination fee

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That comes to a grand total of $9170.10 to borrow $2600!!! :shock: Can it really be legal to charge that much?

More importantly, who the hell would be dumb enough to borrow money at 99.25%?!?

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Originally Posted by altiain

More importantly, who the hell would be dumb enough to borrow money at 99.25%?!?

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Someone watching Pinks at 10am on a Thursday morning? :rolleyes:

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Originally Posted by altiain

More importantly, who the hell would be dumb enough to borrow money at 99.25%?!?

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People who don't (or can't) read the fine print?

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Originally Posted by sammm

Someone watching Pinks at 10am on a Thursday morning? :rolleyes:

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Hey - this is not a regular occupation for me!

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Originally Posted by altiain

So I'm sitting at home today, waiting on the plumber to come and replace my water heater. :(

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Heh... so I unpaused the TV, and the next commercial is some local Ford dealer telling me they'll pay off my trade even if I owe $12k more than it's worth, then an ad for credit card debt counseling services. Apparently there's a specific target audience for this time slot. :mrgreen:

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Originally Posted by altiain

That comes to a grand total of $9170.10 to borrow $2600!!! :shock: Can it really be legal to charge that much?

More importantly, who the hell would be dumb enough to borrow money at 99.25%?!?

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Yes... people are dumb enough.

People that buy rent to own pay 3X - 4X what the goods are worth.

BTW here are their Texas rates:

Loan Amount - Rate
$10,000 Loan - 29.26%
$5,075 Loan - 70.08%
$2,600 Loan - 99.25%
$1,500 Loan - 141.42% :clap:

I noticed they dont do business in states with usury laws on signature loans.

Its amazing to me that people will borrow money at this rate as well... but they will.

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Originally Posted by altiain

Apparently there's a specific target audience for this time slot. :mrgreen:

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Which explains the steady pace of political ads promising something for nothing.

Thats not the worst...Here is the official rates
http://www.cashcall.com/General/Rates.aspx

Play with the state, I live in NC, and they charge up to 141.42% in interest. ::BaHump::

TX looks the same, borrow 1k, pay back 1912 + 500 in loan fees.

Geez, do they at least use a little lube with that?

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Originally Posted by Darron65

Geez, do they at least use a little lube with that?

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I think they use 80 grit sand paper.::BaHump::

I think I need to start a loan company or bone company.