The 2.6 Million Percent Payday Loan
Date: Wed, 12/26/2007 - 07:10
[quote]December 21, 2007
The 2.6 Million Percent Payday Loan
When you think of exorbitant payday loan rates, your imagination probably putters out around one thousand percent APR. While some states like Wisconsin maintain lax or nonexistent cash advance lending restrictions and horror stories of quadruple-digit fast cash loan interest rates pop up from time to time, the fact of the matter is that these atrocities just are not the norm. The short-term, high-interest personal loans extended by cash advance loan joints are universally expensive, but the majority of lenders tend to show some restraint, lest they be called up on charges of loan sharking by the municipality in which they reside. Therefore, the story of the 2.6 million percent payday loan really is amazing. And yes, you read that right.
A fast cash loan firm in York, England, allegedly charged a female consumer that rate for a one week loan of three hundred twenty pounds. Cash advance interest rates are calculated on an annual basis, regardless of their actual (usually short) term. By those calculations, the unnamed customer’s interest rate of eighty pounds was nothing short of highway robbery. The proprietor of Early Payday Loans insists that the store’s rates are “competitive,†but a flurry of press attention has attracted outcry suggesting otherwise.
The UK has not utilized a credit limit ceiling on any personal loans (including cash advances) since the passage of the 1974 Consumer Credit Act. Yet the Early Payday Loans story is too outrageous to ignore, to many. York Credit Union Manager Mike Horncastle was the first to discover the woman’s plight when he plugged her fast cash loan details into computer software designed to calculate the APR of personal loans. When he saw the results, he was so floored that he “assumed it was a mistake,†he said. [/quote]
The 2.6 Million Percent Payday Loan
When you think of exorbitant payday loan rates, your imagination probably putters out around one thousand percent APR. While some states like Wisconsin maintain lax or nonexistent cash advance lending restrictions and horror stories of quadruple-digit fast cash loan interest rates pop up from time to time, the fact of the matter is that these atrocities just are not the norm. The short-term, high-interest personal loans extended by cash advance loan joints are universally expensive, but the majority of lenders tend to show some restraint, lest they be called up on charges of loan sharking by the municipality in which they reside. Therefore, the story of the 2.6 million percent payday loan really is amazing. And yes, you read that right.
A fast cash loan firm in York, England, allegedly charged a female consumer that rate for a one week loan of three hundred twenty pounds. Cash advance interest rates are calculated on an annual basis, regardless of their actual (usually short) term. By those calculations, the unnamed customer’s interest rate of eighty pounds was nothing short of highway robbery. The proprietor of Early Payday Loans insists that the store’s rates are “competitive,†but a flurry of press attention has attracted outcry suggesting otherwise.
The UK has not utilized a credit limit ceiling on any personal loans (including cash advances) since the passage of the 1974 Consumer Credit Act. Yet the Early Payday Loans story is too outrageous to ignore, to many. York Credit Union Manager Mike Horncastle was the first to discover the woman’s plight when he plugged her fast cash loan details into computer software designed to calculate the APR of personal loans. When he saw the results, he was so floored that he “assumed it was a mistake,†he said. [/quote]
Thanks for the article-- sounds like what they cahrged me on th
Thanks for the article-- sounds like what they cahrged me on the cc debt from 25 years ago they are still after :lol:
