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Paycheck Loans APR

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Paycheck Loans APR

Old 08-10-04, 12:19 PM
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Paycheck Loans APR

Look at what a great deal these short term loans are.


I guess the check cashing stores needed something to make money on besides the lotto.

APR Disclosure

In Accordance with Various Truth in Lending Laws here are our fees calculated and disclosed as an Annual Percentage Rate (APR).

The APR will vary due to the length of the loan but will not change with the amount of the loan.

Days Deferred Amount of Loan Fee APR
8 $100 Loan $25.00 1140.63%
9 $100 Loan $25.00 1013.89%
10 $100 Loan $25.00 912.50%
11 $100 Loan $25.00 829.55%
12 $100 Loan $25.00 760.42%
13 $100 Loan $25.00 701.92%
14 $100 Loan $25.00 651.79%
15 $100 Loan $25.00 608.33%
16 $100 Loan $25.00 570.31%
17 $100 Loan $25.00 536.76%
18 $100 Loan $25.00 506.94%
19 $100 Loan $25.00 480.26%
20 $100 Loan $25.00 456.25%
8 $200 Loan $50.00 1140.63%
9 $200 Loan $50.00 1013.89%
10 $200 Loan $50.00 912.50%
11 $200 Loan $50.00 829.55%
12 $200 Loan $50.00 760.42%
13 $200 Loan $50.00 701.92%
14 $200 Loan $50.00 651.79%
15 $200 Loan $50.00 608.33%
16 $200 Loan $50.00 570.31%
17 $200 Loan $50.00 536.76%
18 $200 Loan $50.00 506.94%
19 $200 Loan $50.00 480.26%
20 $200 Loan $50.00 456.25%
8 $300 Loan $75.00 1140.63%
9 $300 Loan $75.00 1013.89%
10 $300 Loan $75.00 912.50%
11 $300 Loan $75.00 829.55%
12 $300 Loan $75.00 760.42%
13 $300 Loan $75.00 701.92%
14 $300 Loan $75.00 651.79%
15 $300 Loan $75.00 608.33%
16 $300 Loan $75.00 570.31%
17 $300 Loan $75.00 536.76%
18 $300 Loan $75.00 506.94%
19 $300 Loan $75.00 480.26%
20 $300 Loan $75.00 456.25%
8 $400 Loan $100.00 1140.63%
9 $400 Loan $100.00 1013.89%
10 $400 Loan $100.00 912.50%
11 $400 Loan $100.00 829.55%
12 $400 Loan $100.00 760.42%
13 $400 Loan $100.00 701.92%
14 $400 Loan $100.00 651.79%
15 $400 Loan $100.00 608.33%
16 $400 Loan $100.00 570.31%
17 $400 Loan $100.00 536.76%
18 $400 Loan $100.00 506.94%
19 $400 Loan $100.00 480.26%
20 $400 Loan $100.00 456.25%
8 $500 Loan $125.00 1140.63%
9 $500 Loan $125.00 1013.89%
10 $500 Loan $125.00 912.50%
11 $500 Loan $125.00 829.55%
12 $500 Loan $125.00 760.42%
13 $500 Loan $125.00 701.92%
14 $500 Loan $125.00 651.79%
15 $500 Loan $125.00 608.33%
16 $500 Loan $125.00 570.31%
17 $500 Loan $125.00 536.76%
18 $500 Loan $125.00 506.94%
19 $500 Loan $125.00 480.26%
20 $500 Loan $125.00 456.25%
Old 08-10-04, 12:22 PM
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I need some of that APR.

what the hell..

Of course the very people who need this money are the people who sure can't afford to pay such an APR.
Old 08-10-04, 12:24 PM
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This should be illegal. It is just legalized loan sharking.
Old 08-10-04, 12:26 PM
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I don't know if it's strictly my area, but I've never seen a single person in any of these places everytime I drive by one.
Old 08-10-04, 12:45 PM
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http://www.paydaycity.com/faq.php3?P...ea488f9326a1b9

It looks like you can get them online as well. It should be illegal then again if people are willing to pay the rate I guess so be it.
Old 08-10-04, 12:48 PM
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in san francisco on market street, there are lines out the door before the place opens.
Old 08-10-04, 01:51 PM
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I've never understood why somebody would use a check cashing place to cash a paycheck or something like that anyway. It makes very little sense to me.

The paycheck advance loans I understand. I think you'd have to be very foolish to do this, but I do understand it.
Old 08-10-04, 02:13 PM
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Originally posted by Tsar Chasm
This should be illegal. It is just legalized loan sharking.
It is in some states.
Old 08-10-04, 02:47 PM
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Originally posted by Otto
I've never understood why somebody would use a check cashing place to cash a paycheck or something like that anyway. It makes very little sense to me.

The paycheck advance loans I understand. I think you'd have to be very foolish to do this, but I do understand it.

I would bet people that do not have a checking account. I used to work for a grocery store and people would come in cash the pay check or welfare check then get money orders for all the bills for the month.
Old 08-10-04, 03:33 PM
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Originally posted by Tsar Chasm
This should be illegal. It is just legalized loan sharking.
Why? Are people being forced to use the service?
Old 08-10-04, 03:40 PM
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Tile advance, pawn shops and packcheck loan have exemptions from the usuary laws that are used to monitor credit cards.
Old 08-10-04, 03:50 PM
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NC was debating making this industry illegal, or capping the rates, or something a while back. Making it illegal is one thing, capping the rates is another, but I digress. There was a local conservative talk show host who recently discussed this, and he was of the opinion that as long as there's no outright defrauding or misleading contracts going on, they should be able to do what they want. More of them would mean more competition [a good thing], but also they fulfilled a need in the community, for better or worse.
Most of the people who need this help probably either don't have credit cards, or need the payday loans to help pay off the credit cards among other things [and cc's have ridiculous long term rates and fees as well, if your credit isn't spotless.] Where else do these people get the money? If they go to a bank and say I need 500 bucks to pay my bills until I get paid next Friday, the bank would laugh them out of their office. They may not have any assets to put up, and they don't need a long term loan or a huge loan that the bank could give them, if their credit was good enough [again, which it probably isn't]. So the only place they can get this money quick is these payday places.
Obviously that doesn't solve the problem that caused the person to need the quick cash in the first place, but it would only exacerbate it if this option weren't available to them.
Old 08-10-04, 03:56 PM
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Originally posted by BigDaddy
I would bet people that do not have a checking account. I used to work for a grocery store and people would come in cash the pay check or welfare check then get money orders for all the bills for the month.
So get a checking account. It's not like you have to have a good credit rating or that there's some kind of high standard or something, just to get a checking account.
Old 08-10-04, 04:17 PM
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Originally posted by Otto
So get a checking account. It's not like you have to have a good credit rating or that there's some kind of high standard or something, just to get a checking account.
Most banks will run yor information through telecheck when opening a new account for you. If you have had any NSF checks before it will show up.

So, there is a standard for banks to decline a new account for you. It may be for a good reason like NSF checks at previous bank, but there is a standard.

Check out:

TeleCheck
Old 08-10-04, 04:31 PM
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Originally posted by Tsar Chasm
This should be illegal. It is just legalized loan sharking.
These places are open to a lot of fraud and that is why the high rates exist.
Old 08-10-04, 04:38 PM
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Originally posted by Just Lurking
Most banks will run yor information through telecheck when opening a new account for you. If you have had any NSF checks before it will show up.
So, there is a standard for banks to decline a new account for you. It may be for a good reason like NSF checks at previous bank, but there is a standard.
Never heard of Telecheck, but I have heard of ChexSystems before. But they don't have total bank penetration... Many banks will open a basic checking account for anybody, more or less. They may charge a monthly fee, but it's far less than these check cash places charge. I mean, ChexSystems sucks, but it's not like a credit report, where everybody and everything checks up on it and it becomes impossible to get credit. Getting a checking account is within the means of pretty much everybody.
Old 08-10-04, 05:03 PM
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ChexSystems reports can be pretty brutal.

Waaaay back in college, I didn't exactly keep the most balanced checkbook in the world (understatement of the year.) After I left school and entered the "real world", I couldn't get a regular checking account because I had a flag on my ChexSystems report. I ended up having to deposit my paychecks in a Savings Account (no checks, no ATM card) until I was able to resolve the situation with the now-defunct Shawmut Bank. It took over a year to do, but I was finally able to open another checking account.

This taught me a huge lesson in money management. From what I understand, derogatory Chexsystem reports last for five years. If someone loses their job, gets a ton of NSFs, and later pulls themselves out of the hole, they might find themselves without a viable checking account for years.

Still, anyone who uses these "Paycheck Loans" are much better off borrowing from a friend, getting a cash advance off their credit card, or selling a kidney. Over here at our firm we got a letter from one of these Paycheck Cashing stores; one of our consultants got a payday loan and never paid it back. I think they borrowed something like $300 and currently owed $1124 on it. Unbelievable.
Old 08-10-04, 05:07 PM
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Originally posted by Otto
Never heard of Telecheck, but I have heard of ChexSystems before. But they don't have total bank penetration... Many banks will open a basic checking account for anybody, more or less. They may charge a monthly fee, but it's far less than these check cash places charge. I mean, ChexSystems sucks, but it's not like a credit report, where everybody and everything checks up on it and it becomes impossible to get credit. Getting a checking account is within the means of pretty much everybody.

I had a buddy that worked for a company that had prepaid credit cards for people that could not get checking accounts. What he told me is that credit does have a factor in checking accounts. Then again third party information.
Old 08-10-04, 05:27 PM
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All I know is that there has been multiple times where I've gone into a bank, gotten a checking account by filling out a form, gave them cash for my first deposit, along with a paycheck from a local business, and walked out with a book of checks in my hand - all within 10 minutes. I admit that they could have an automated system, but the guy never typed anything on his computer while I was sitting there in front of him, in both cases. He could have checked on it later, but he had my cash and I had checks in hand at that point, so what would happen had there been a denial situation? Makes little sense.

I grant you that different banks could be harder, but I find it hard to believe that all banks are this way.
Old 08-10-04, 05:41 PM
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You may be right not as much credit but this.


Usually, checking accounts are refused based on what is called ChexSystems, not your credit report (although banks vary). The last information that I have heard is that about 80% of banks use ChexSystems. When you owe a bank money, like when you have insufficient funds and you have a negative balance and it is not paid back, they can send a report into ChexSystems. Since ChexSystems is not regulated as much as credit-reporting agencies, the banks are not required to report you or to turn down an account applicant because of a bad report. However, once you have anything on your ChexSystems report, most banks will turn you down for a checking account anyway.
Old 08-10-04, 05:46 PM
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Originally posted by al_bundy
These places are open to a lot of fraud and that is why the high rates exist.
Most state's (like NY) usury laws limit interest to no more than 25%. I would bet in some states these kinds of places are just plain illegal.

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