Posted on 09/29/2008 3:21:17 PM PDT by governsleastgovernsbest
Aren't Chris Matthews and Hardball the champions of the little guy? You know, those folks, embittered by the bad economic times, who get exploited off by questionable financial institutions? So why does Hardball have as a sponsor a lender with a target market of the down-and-out, that charges borrowers . . . over 99% per annum in interest? [Large screencap showing fine print after the jump.]
There I was watching this afternoon's Hardball, when, just after Matthews got through playing [for the umpteenth time today on MSNBC] clips from Tina Fey's latest Sarah Palin impression, on came an ad for something called Cash-Call. A Gary Coleman look-alike, or perhaps the Diff'rent Strokes veteran himself, appears and makes an aggressive pitch to people at the end of their rope.
View video here.
(Excerpt) Read more at newsbusters.org ...
The loan shark will have you shot in the kneecaps if you default.
GMTA. From the original NewsBusters article:
“I went back and reviewed the ad. And sure enough, there it was in the fine print: “The APR for a typical loan of $2,600 is 99.25% with 42 monthly payments of $216.55 with a $75.00 origination fee.” That amounts to a total of $9,170.10 in principal, interest and fees on a loan of $2,600. ‘Be sure you can afford the monthly payments,’ indeed.”
The idea of these loans is that you're supposed to pay them back in a week or month, once you get your paycheck, with a fixed fee to the "payday loan" folks. They'll carry the fee/payback from week to week, charging a fee each time.
Normally, you'd take out a payday loan of $2,600, and pay the $75 origination fee ... and once you got your paycheck you'd pay off the loan, and that would be it.
The problem is for those folks who can't or don't pay back the loan.
talk about preying on the poor and ‘Main Street’???!!??!!?
Maybe Chrissy Matthews the unapologetic liberal scumbag should check this own House before criticizing Ours??!?!?
Even in cases such as the above, however, the borrower could get a credit card from HSBC/Orchard Bank at an APR of 32%.
YOU go tell that to "Guido"...
; )
What’s even worse is that most of these so called small lenders are actually backed by the big banks.
The Mafia does not charge that much!
The one and only recently braindead Tim Johnson!!!!!! (Democrat, as if you needed me to tell you that...)
Tim Johnson is the guy who filibusters bills which try to enact Federal Usury laws. When 25% isn't enough, Tim Johnson will head to the Senate floor to defend your right to rip off the poor.
In 2006, the US Congress had to pass a law to prevent the despicable parasites from setting up shop outside of every US military installation and offering ‘pay day loans’ to our troops and the wives of our troops. Those practices were deemed "despicable, unconciouscable and reprehensible" by members of Johnsons OWN party. And he was finally forced to relent and allow this Bill to pass to prevent members of our Armed Forces from being raped by mobsters who pass themselves off as members of the financial community.
If Tim Johnson had to come out of a coma to do it, he would filibuster any Bill which prevented these vermin from charging 99.99% (and far, far more) to the poor in rural and inner cities areas all over the country.
Shockingly, (feigning surprise) when this Bill pass all of those payday loan operations suddenly disappeared from the perimeter of our military bases. Who woulda' thunk it???!!!?
And the public thought that Wall Street was greedy and corrupt....
That company probably did its research and discovered that the wretched people who are willing to pay for its knee capping rate are lucky to get any loan, are loyal fans of Chrissie the Thrill Runs Down my Legs for Hussein Obama.
Pathetic. Wonder if they're a subsidiary of GE Financial Corporation.
Wow, does a 99% APR approach the level of “predatory” lending or can that term only be applied to people the Demagogues don’t like?
when will David Gregory have to resign due to his wife’s involvement???
:-)
Ya pay the vig, you’re awright...
Here’s how it works: Let’s say you live in California and are looking to borrow $2600. Cash Call’s Web site tells you what its commercial conveniently omits: that you only receive $2525, a full $75 less.
But it gets better (worse, actually). If you were to go ahead and take out a loan, you’d be paying nothing less than a 99.25% interest rate, which translate to 42 payments of $216.55 each. That amounts to $9095.10 you’re giving Cash Call – over $6500 for a $2500 loan. And the company reserves the right to change its rates, so you could actually end up paying even more.
And as outrageous as it sounds, a 99.5% interest rate is legal. Very few states have usury restrictions, so companies like Cash Call are free to charge whatever they please.
http://www.cnbc.com/id/26533968
Any APR greater thatn 18 percent should be illegal. Especially since the fed can print all the money they want. We used to have usury laws in this country.
Matthews is a lib and you really expect him to understand things like economics, cash flow and interest?
;-)
Yesterday or today. I remember thinking how odd it was to have this type of ad on TV in the midst of a financial crisis.
On the other hand, they are running all sorts of ads for different mutual funds and financial services as well, perhaps to reassure people—or maybe just incredibly bad timing.
Thanks, wb. I’ve heard from others who have seen it in their markets: seems clear it is a national ad, and as such approved by MSNBC. Don’t know if Matthews was aware of it before, but he surely is now.
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