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1369 Reasons For Not Using Payday Loan Companies
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1369 Reasons For Not Using Payday Loan Companies

I have done a bit of research and I have come up with 1369 reasons for not using payday loan companies. I will list them all in one word, interest!

1369?

This is the interest number that Integrity Advance LLC, a payday loan company is charging in interest on their online payday loans in Minnesota. 1369% interest, and believe it or not people were still signing up and taking out the loans.

Now knowing what we know about payday loans and how most people who take them out either have bad or no credit and are usually desperate for money, should we not be mad as hell about a company like this taking advantage or the disadvantaged?

What happened to having integrity in this country?

Illegal!

First and foremost, charging these kinds of interest rates in Minnesota is illegal.When confronted by state of Minnesota investigators, this company at first denied they were writing any loans in Minnesota. When presented with proof that they were, they then changed their story to say they had to date written 1269 loans in this state.

They understand that actually prosecuting them for online loans is virtually impossible due to them being based just about anywhere in the world. They will change their names and locations, and just keep doing business and making mega bucks at our less fortunate peoples expense.

Who are these guys?

Payday loan companies are so hard to trace and keep track of, but there may be a way to get to them that has been coming to light lately. Seems these companies are being backed by the major banks right here in the good ole USA.

Now, according to experts this is very true and one of the biggest financial backers is Wells Fargo. If this does pan out to be a fact, and you can bet I will be doing much more research on just where the money does come from to keep these businesses liquid, then there should be a pretty good paper trail for tracking these guys.

Make a statement!

We all need to do our homework and stand up and make a statement about what we think of these kinds of loans, and why it is not alright to exploit the poor and disadvantaged.

  • First, do not use these companies!
  • Second, find out who backs them and do not use those companies!
  • Third, contact your lawmakers and let them know you are watching and expecting them to do their jobs in looking out for what is best for all residents of your state!

Summery

Stay away from these companies, get involved in your community on fighting these guys, and always make wise choices when borrowing money.

If you are having trouble with payday loan debt, there are many payday loan consolidation companies available to help you out. Why not stick it back at the loan companies a bit?


Street Talk

The rules I live by are to only buy things that benefit me or someone I care about and that If I can`t buy something in CASH(a purchase in full) it means that I can`t afford it. Only the very bad with money or the very unlucky should ever resort to such things...

Reply
  about 6 years ago

Very good rules Chip.

Reply
  about 6 years ago
Robbie-  

1369 - You have it easy over there in the ole US of A. When they get advertised on the telly over here, they're after stuff like 2798 in some cases. I usually fast forward ads, but when I see fast payday loans...no credit, no hassles, I'm forced to chuckle at the small print along the bottom of the screen. Typical APR 2798%. First ad I saw I thought it was a misprint and supposed to read like 27.98 but no. Eyesight fine, so my eyes weren't deceiving me.

Reply
  about 6 years ago

It is crazy. I am amazed people knowingly take these things out. Thanks for reading and commenting Robbie!

Reply
  about 6 years ago

Until you brought this up Shawn I had no clue on the interest rate on Pay Day and short term loans advertized on T.V. and the internet. From 650% to over 800%???? Shouldn't that be illegal? That's loan sharking! Maybe they will not break your legs but they will break you in so many other ways. Anyone who pursues a loan with these criminals needs their heads examined no lie.

Reply
  about 6 years ago

April, the world has changed while we were not looking. :(

Reply
  about 6 years ago

Yes Shawn, most of us "regular Jo's" were too busy trying to scratch out a living. When we had the time to take a good look, the food and gas prices were why up among other things. Think that's the plan, let average American citizens work themselves into the ground while we drain them and they are running on empty!

  
  about 6 years ago

Great article Sean. Glad to see that you are warning John Q. Public about these shysters. I have been telling my granddaughter to steer clear of these outfits for years. If it sounds to good to be true then you can be sure that it is not true. Just do your due diligence before you jump into any financial dealings. I did not realize that some of the major banks are financing these clowns. Thank you for the great information.

Reply
  about 6 years ago

You are welcome Peter. It just needs to be talked about.

Reply
  about 6 years ago
Golfspice  

UK perspective - I find it amazing that payday loan companies can get away with the interest rates they charge. I also object to the style of advertising used to attract customers. For example, one company in the UK advertises on prime time television using puppets of little old ladies / and gent promising instant cash and approval in minutes. This company is currently the biggest financial tech start up business in the UK, and planning to go global. I read in a recent article they identified a gap in the market when banks started making it more difficult to borrow money from them. The same article also revealed their standard loan rate to be 4124 per cent, which under certain circumstances can rise to nearly 12,000 per cent. Apparently, this company claim that nobody will ever pay this rate because it is capped after 60 days. How do they get away with it - unbelievable!

Reply
  about 6 years ago

I am pretty much no longer surprised by any of it. :) Thanks for commenting!

Reply
  about 6 years ago

1369% is the highest interest rate I've seen so far. A payday loan company's online presence should not make them untouchable. The jurisdiction issue should work this way: if a payday loan company can do business with the people of a particular state, then that payday loan company should automatically fall under the jurisdiction and laws of that state. No company should be above the law because they lack a brick and mortar presence. In fact, state legislators should enact laws that prohibit anyone from offering online payday loans unless they have an actual physical presence in one of the 50 states. Such a law might be hard to enforce, but it's a good place to start.

Reply
  about 6 years ago

Very well said Bill!

Reply
  about 6 years ago

Great info Shawn! I was not surprised that some big banks are behind these "loan sharks". Hey if they let huge amounts of drug money funnel through them what else are they doing? See below just the main meat out of two of many articles......... Fox News (yuk) but here is just part of the article. Mexico Drug Cartel Funneled Money through Bank of America, FBI .. (A notoriously violent cocaine-trafficking cartel funneled drug money through accounts at Bank of America to purchase race horses in the United States, according to the Federal Bureau of Investigation. Los Zetas routed roughly $1 million per month for two years through Bank of America accounts, FBI Special Agent Jason Preece said in an affidavit filed June 11. Banks Financing Mexico Gangs Admitted in Wells Fargo Deal By Michael Smith - Jun 29, 2010 12:00 AM ET Just before sunset on April 10, 2006, a DC-9 jet landed at the international airport in the port city of Ciudad del Carmen, 500 miles east of Mexico City. As soldiers on the ground approached the plane, the crew tried to shoo them away, saying there was a dangerous oil leak. So the troops grew suspicious and searched the jet. They found 128 black suitcases, packed with 5.7 tons of cocaine, valued at $100 million. The stash was supposed to have been delivered from Caracas to drug traffickers in Toluca, near Mexico City, Mexican prosecutors later found. Law enforcement officials also discovered something else. The smugglers had bought the DC-9 with laundered funds they transferred through two of the biggest banks in the U.S.: Wachovia Corp. and Bank of America Corp., Bloomberg Markets magazine reports in its August 2010 issue.

Reply
  about 6 years ago

Money just seems to breed corruption. You can really test the morality of a person with it for sure.

Reply
  about 6 years ago
Kymee  

I have to say, glad you are out there. I now here of more people that use this type of help I can tell them why not to. Have a great day Shawn. Kymee

Reply
  about 6 years ago

Thanks Kymee!

Reply
  about 6 years ago
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