The fact that most are American Companies has been removed from the article as an update.
” one million Britons?”
they have that many still in the private sector?
You can make cash from medical research.
It’s not as bad as it sounds. Sometimes.
A million Britons take out payday loans (4000%) to help pay their mortgage costs in just one year
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BS
What they are doing is taking out payday loans so they can pay mortgages AND blow cash on crap they can’t afford...like drugs and gambling.
How did loan sharks suddenly become legal to operate in the USA and UK? Maybe they know someone in government.
Should we be elated that the Wall St bankers who played a big part in this economic collapse are doing just fine, with the help of crooked pols, our tax money and their cronies in the Federal Reserve passing out free money to invest for even their wives? This article demonstrates the gross manipulation of the system for the benefit of a few. “Inside Job” the non-partisan movie was a wake up call.
The games the insiders play are not at all about risk, reward, capitalism, creating innovation, expanding means of production and creating a robust economy. They on WS are a casino structured to suck in new money from the street that will be used to create wealth, power, and the means to influence government and expand cronyism for the few. It is a sanctioned private club (even the wives get to play) that gets our Federal Reserve dollars to invest globally at our expense, while conservative responsible savers that want no part of their Ponzi scam are trashed.
A number of states, as well as the US military, have placed maximum annual percentage rates on payday loans, which have effectively outlawed the service. Legitimate payday loan "stores" publish the APRs, it's in no way hidden. In fact, the application document practically screams the high APR, how much is being loaned, and how much must be paid back, and by what date (usually 2 weeks, which is why the high APR is required.) Another reason for the high APR is often the borrowers have a less than stellar credit history.
Here's why the incredibly high APRs... Let's say you need to borrow $500 to have your car fixed. And let's say the state has set a limit of 30% APR. If the loan had a term of a fully year, you would have to pay back the original $500 plus $150 interest. But the term is NOT 1 year, it's 2 weeks. A 30% APR for a 2 week loan would mean the payday loan store would receive interest of $5.77. There's no way any business could afford to loan $500 for two weeks for less than $6. On the other hand, using a round number of 600% APR (I believe most stores are closer to 450% APR), would result in having to pay back a bit less than $116 plus the original $500 after two weeks.
The simple fact is that sometimes people need an emergency source of money, due to medical bills, or in my case, having the transmission in my car fixed. Unfortunately I lived in NY at the time, which outlaws "usurious" interest rates. So I had no choice but to go to a drug dealer for a loan, and actually had to pay back substantially more than what a payday loan company would charge.
Mark