Loan sharks would be jealous
Recently I got to spend some quality time channel surfing while I dealt with a bout of bronchitis and one of the daytime TV ads that caught my eye was one which offered a loan of up to $5,075... in minutes!
That seemed like an odd amount so I surfed on over to the web site in the ad to see what that was about and figured out that the extra $75 was a loan fee so on top of loaning someone the money they were sticking the mark, um... customer, with paying interest on the loan fee.
Ok, whatever... but then I noticed the rate on the loan: 70.08% APR for seven years. That translates to 84 payments of $294.50 for a total liability of $24,738.
Wow. Who takes that loan? Seriously... unless someone was literally going to kneecap you over a $5,000 gambling debt what could be worth it?
They also had a $2,600 loan ($2,525 + $75) with a rate of 99.25% for three and a half years. So that is 42 payments of $216.55 which equals $9095.10.
Or, a $1,500 loan which had proceeds of $1,000 and a $500 loan fee with an APR of 141.42%. Payable in 12 payments of $159.83 for a total of $1917.96.
That seemed like an odd amount so I surfed on over to the web site in the ad to see what that was about and figured out that the extra $75 was a loan fee so on top of loaning someone the money they were sticking the mark, um... customer, with paying interest on the loan fee.
Ok, whatever... but then I noticed the rate on the loan: 70.08% APR for seven years. That translates to 84 payments of $294.50 for a total liability of $24,738.
Wow. Who takes that loan? Seriously... unless someone was literally going to kneecap you over a $5,000 gambling debt what could be worth it?
They also had a $2,600 loan ($2,525 + $75) with a rate of 99.25% for three and a half years. So that is 42 payments of $216.55 which equals $9095.10.
Or, a $1,500 loan which had proceeds of $1,000 and a $500 loan fee with an APR of 141.42%. Payable in 12 payments of $159.83 for a total of $1917.96.