Loan Sharking is Legal??

I just have to comment on a commercial as I think it’s funny as all get out and yet horrifies me to the core.

It’s for an loan kinda place and the on-air chick says, “Yes, the money is expensive, but it’s a lot cheaper then a payday advance.” I find the statement, “Yes, the money is expensive,” to by hysterical. You mean buying money COSTS money? Who’d have guessed.

Then come the terms of the loan.

“The APR for a typical loan of $5,000 is 110.73%, with 84 monthly payments of $488.58.”

That means you pay $41,040.72 for $5,000. Holy ever loving mother of God. Are you shitting me???

I’m not sure how loan sharking became legal. I must have missed that on the news. They don’t mention knee-capping for lack of payment, but I guarantee if you don’t pay on time, some big ass mo fo shows up at your door with a pair of pliers and a blow torch. Either him or, as the picture shows, the Grim Reaper with his, “You are SO out of time,” speech.

Options you have instead of going to this place of insanity:

  • Hooking on the street corner. You could earn at least $500 a day if you have ANY skill.
  • Panhandling on the street corner if hooking scares you.
  • Starting your own Pyramid scheme. As long as you are at the top, you earn money.
  • Selling stuff you own. Not fun, but still better than being violated in unpleasant places.
  • Having a bunch of lemonade stands in your front yard. Might not make you 5k, but it’s better than the alternatives.

Having no money sucks. I’ve been there and it seriously blows. But trading 41k for 5k just seems like bad business to me. And SHAME on WesternSky Financial (the money rapers) for being so greedy and taking advantage of people in need. Asshats.

Stepping down from soapbox now! πŸ˜‰

22 comments on “Loan Sharking is Legal??

  1. Great minds think alike!! πŸ™‚ I saw that ad and thought the same thing!! How could that be legal, but sure some poor soul down on their luck will use it and this scum company will make tons of money off of them.

    I’ll try the lemonade alternative instead. Hung up my hooker shoes for the moment! πŸ™‚

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    • Yes they do! Isn’t that ad insane???? How on earth it’s legal is beyond me! It’s one of those, “The rich get richer and the poor get poorer.” Just awful!

      As for the hooking, yeah, I guess my hooking days are over too. πŸ˜‰

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  2. Yeah, we have those commercials here in the southeast too. I guess since they operate on a reservation, they aren’t subject to our laws and regulations. It’s a shame that the native American community is reduced to this. It’s probably because of some guy that is 1/64th native American.

    I’ve never tried hooking. I would, but I’d probably end up even more in debt if I did. Hell, I doubt the police would even bother to arrest me.

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  3. I saw this picture posted a long time ago, explaining in layperson’s terms how the different predatory lending scams work. If you don’t read or understand the fine print, you’re stuck once you sign the papers.
    If you ask the salesperson to explain it to you, I’ll bet they leave out some of the service charges or the full terms.

    Your state or province may (should) have a Consumer Protection office. In Manitoba they license and regulate payday lenders and will assist with complaints, investigations etc.

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    • I believe that this particular loan sharking organization is on the Native American reservation, so they aren’t held to the same regulations. It’s just sinful how people prey on others who are less fortunate. I wish I was a billionaire–I’d stand out side that place and just give people money. πŸ™‚

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      • Aahh… that makes it a whole different game then. A level playing field would probably straighten that out, but that won’t happen. I can understand the draw for some to borrow money and get sucked in to the trap.

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  4. We have this in the UK too – payday advance. Great scheme if you are incredibly conscientious about money, but then again if you were, you wouldn’t need a payday advance!!!! Only the vulnerable are going to get caught up in this and the Govt. stands by and allows it to happen with no safety net. I’m trying to figure out how the Govt. gets their cut.

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    • Stuartart, that’s the interesting part. The money raping lenders are on the Native American Reservation, so the gov’t likely doesn’t get anything–it all stays on the Res. I understand that we allow, essentially, self-governance on the Reservation because, well, you know, our ancestors did really horrible shit to their ancestors and we are trying to make amends. But I just find it disheartening when anybody tries to take advantage of people who are having money troubles. It just seems like one of the lowest forms of predator/prey out there.

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    • Thanks, Stephie! I figure people either love it or really, really hate it! Glad you fall into the former category. πŸ™‚ Thanks for stopping by. It’s always great to see new faces. πŸ™‚

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  5. When I read you rant at that measly APR I nearly fell of my chair, lmao here in “Rip of Britain” we have TV ads offering over 3000% I have written and complained to everyone I can and guess what?

    All financial institutions in the UK are independently governed and their is frack all we can do about it, I guess you guys are heading that way as well, sorry for the anger Jodi, I am usually much calmer but I warn y’all higher percentages in the thousands will be coming soon!

    Watch this space….

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  6. My husband and I LOVE this commercial. The admission that they are utterly ripping you off amuses us – and we are bummed that they have recently changed the commercial to sound much more pleasant and friendly, though the ridiculous rates are still visible in the small print. Not the only company out there that does such skeevie business, but possibly the worst rate – at least that I have seen.

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    • This commercial cracks me up too. “Hi. We are going to financially rape you and smile whilst doing so.” Good grief!!! Another blogger said that in the UK they have rates as high as 3000% APR. Holy moly!!!

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