Didn’t the neon sign on the front reading “Abandon all money, ye who enter here” give the “unwary borrowers” a clue? Seriously, does anyone actually think this is a good idea when there is any alternative? Maybe the people who borrowed had no other sources, such that, as bad as this deal is, it’s better than what they had available without these places.
About 10 yrs. ago, I sold a pick up to my s-I-l and her husband for $7,000. They couldn't get a bank loan because of poor credit. She tried to get me to "take pymts" on it. I refused for the same reason the bank did but to keep the peace, I told her that we really needed the cash.
I've known her and her husband for more than 50 years, I knew, without a doubt, that they would never repay me in a hundred years.
They really wanted that truck and I was selling it to them at a real bargain price. They finally found a loan company to loan them the money at 27% for 7 years.
I didn't do the math but they probably paid double for the truck.