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Hey y’all, I’m pre-approved for a personal loan

Gil Bang

By Gil Bang
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Beau Vine

Beau Vine 54,208

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Posted
2 hours ago, Incredulity said:

184.36% how is that legal?

The same way payday loans are.  State legislators from both parties specifically wrote in get-arounds to avoid state usury laws.  In this state, they are Credit Servicing Organization exceptions.  

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Zombie

Zombie 284

Posted
Posted
1 hour ago, futureman said:

wouldn’t you pass that debt to your children?  

Children don't inherit a dead parent's debt. The dead parent's estate would inherit the debt and decrease the children's inheritance. So yes, it's a good idea if you have a terminal illness. 

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AUS-97HORN

AUS-97HORN 11,757

Posted
Posted

nice little loophole in the Usury laws of the country, you are allowed to loan money to anyone in the country to the max rate allowed *IN THE STATE THE LOAN IS BEING PROVIDED FROM*, which is why South Dakota is a very popular state that Credit Card companies say they reside in, at last check the max rate allowed to be charged on a card in SD is $28.68%

also another fun fact- Tribal Lands of Indigenous Peoples are considered their own entity, and thus they are able to charge whatever interest rate their tribe allows.  Which is where you get the 180% number above.    

There used to be a crappy commercial played on daytime tv for a company called Western Sky that charged up to 300% using that loophole

 

company got popped for fraud shortly after

 

 

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Liquor and Poker

Liquor and Poker 3,659

Posted
Posted
9 minutes ago, AUS-97HORN said:

nice little loophole in the Usury laws of the country, you are allowed to loan money to anyone in the country to the max rate allowed *IN THE STATE THE LOAN IS BEING PROVIDED FROM*, which is why South Dakota is a very popular state that Credit Card companies say they reside in, at last check the max rate allowed to be charged on a card in SD is $28.68%

also another fun fact- Tribal Lands of Indigenous Peoples are considered their own entity, and thus they are able to charge whatever interest rate their tribe allows.  Which is where you get the 180% number above.    

There used to be a crappy commercial played on daytime tv for a company called Western Sky that charged up to 300% using that loophole

 

company got popped for fraud shortly after

 

 

I can’t believe they’ve been OOB for 6 years.  I feel like I saw a Western Sky commercial in the last few months.  

“The money’s expensive, but...”

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Gil Bang

Gil Bang 25,920

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Posted
5 hours ago, AUS-97HORN said:

nice little loophole in the Usury laws of the country, you are allowed to loan money to anyone in the country to the max rate allowed *IN THE STATE THE LOAN IS BEING PROVIDED FROM*, which is why South Dakota is a very popular state that Credit Card companies say they reside in, at last check the max rate allowed to be charged on a card in SD is $28.68%

also another fun fact- Tribal Lands of Indigenous Peoples are considered their own entity, and thus they are able to charge whatever interest rate their tribe allows.  Which is where you get the 180% number above.    

There used to be a crappy commercial played on daytime tv for a company called Western Sky that charged up to 300% using that loophole

 

company got popped for fraud shortly after

 

 

"Cash Call" was actually funding those loans, and using the injuns to "broker" them.  The feds tore them a new asshole over it. 

Paul Reddam, the horse-racing bigshot, is the owner of that company. 

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Beau Vine

Beau Vine 54,208

Posted
Posted
6 hours ago, TrashMaster G said:

I've always wondered about those commercials.  How many people out there are receiving annuity payments?

A lot of retired people, including my dad.  Those tend to be federally insured, so that's nothing like the topic here.  

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Beau Vine

Beau Vine 54,208

Posted
Posted (edited)
5 hours ago, Vic Mackey said:

Isn't this about the interest rate charged at those payday loan places? 

That's way lower.  Last time I looked, Ace Cash Express was charging something like 692% APR.  

But they had Ron Washington doing ads for them, which really cuts into their profit.

Edited by Beau Vine
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Sbbruin

Sbbruin 21,829

Posted
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3 hours ago, Gil Bang said:

"Cash Call" was actually funding those loans, and using the injuns to "broker" them.  The feds tore them a new asshole over it. 

Paul Reddam, the horse-racing bigshot, is the owner of that company. 

Cash Call/IMPAC Mortgage is who my mortgage is through.  I'll take my 2.75% 15 yr fixed all day long.

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ImissWallyPryor

ImissWallyPryor 9,046

Posted
Posted (edited)
21 hours ago, Incredulity said:

184.36% how is that legal?

Payday Lenders have more scruples than banks. Banks hold NSF checks as a “service” to their customers until they make their next deposit, only they charge a $35 fee per check. If some poor schmuck has 3 NSF checks totaling a few hundred bucks instead of getting a Payday Loan, they are paying more than 184.36% on that “loan” from their friendly banker. 

Edited by ImissWallyPryor
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Walden Ponderer

Walden Ponderer 12,639

Posted
Posted
22 hours ago, dingleberryswitzer said:

I'm totally gonna do this if I ever get a terminal Illness.

Man, one of my 1,001 temp jobs back when I was still in school was in a credit card company call center, and I once helped a 96 year old woman with her application. "I'm fresh out of relatives worth leaving anything to, so I'm gonna run this sucker up as high as I can get it."

She got a $5000 limit, if I'm remembering rightly. Probably been dead for 20 years at least now, but I always wondered how high she got it before she croaked.

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Llano Estacado

Llano Estacado 1,257

Posted
Posted
A lot of retired people, including my dad.  Those tend to be federally insured, so that's nothing like the topic here.  


That’s exactly what JG Wentworth preys on though.

They find someone with an insured annuity or a structured payments from divorce, bankruptcy, lawsuits, etc. then pays the recipient a lump sum worth a fraction of the total value to assume the annuity.

Guy with bad credit and poor financial sense has $100,000 for a motorhome or Harley in retirement and JG Wentworth takes over that pesky mailbox money coming in at 1k/month for the next 20 years. (No idea how bad they screw clients to process claims or for the time value of money)
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GhostOfTomJoad

GhostOfTomJoad 9,323

Posted
Posted (edited)
22 hours ago, dingleberryswitzer said:

I'm totally gonna do this if I ever get a terminal Illness.

A beer drinking buddy of mine tells the story of a friend of his in DFW who was told by his doctors in the early '00s that he had a terminal condition & that he basically had 6-12 months to get his affairs in order. Dude was in his early 50s, smoked like a chimney & had been a functioning alcoholic most of his adult life. So he said "fuck it," quit his good job at IBM, cashed in his 401k, liquidated everything AND maxed out his credit cards traveling the world on a year long bender.

Except he didn't die.

He still hasn't died. Whatever condition he has/had hasn't killed him yet. He didn't blow through all of his savings, but put himself in a massive hole that he'll never crawl out of. I've seen the dude a few times, most recently just before baseball season began. My buddy and him have a tradition of going to the Rangers' opening day game every year. He looks like an old catcher's mitt. And he's still a total lush that jokes he "miscalculated."

Edited by GhostOfTomJoad
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TwiceHorn

TwiceHorn 31,439

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Posted (edited)
8 hours ago, TrashMaster G said:

I've always wondered about those commercials.  How many people out there are receiving annuity payments?

A lot of personal injury settlements come in the form of an annuity.  Particularly so for minors. 

So those commercials appeal to the same people that hire the Texas Hammer, but they need cash now.  I assume that those outfits convert to cash at an unconscionable discount, but don't know.

Edited by TwiceHorn
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