“My favorite is this “Western Sky” payday lender who advertises on primetime TV to the “urban” crowds. It says in the fine print on the bottom of the commercial that there’s a 135% interest rate. 135%! You take out a $100 payday advance and you owe them over double what you took out. How is that legal?”
Please leave the economic ignorance to the democrats where it belongs. The 135% is an Annual Percentage Rate and is frankly much too low. A payday loan is supposed to tide you over for a week until you get your paycheck. If you pay back the $100 in a week, it cost you $2.60 in interest. Are you kidding me? You try to operate a lending business in an urban area and see if you can make it go by charging $2.60 per loan.
Again... regardless of my presumed level of economic ignorance, the fact that they advertise their rate at that should make ANYONE think twice about a payday loan.
My level of ignorance is due to the fact that I have no debt nor any need for a payday loan. I don’t pay attention to those factors prima facie because they don’t apply to my situation.
See post #12 for my point.