194% APR on a loan?

[Marcus78]

While watching a little T.V. today, I saw about 5 Western Sky loan advertisements. You know the ones; they have an Indian talking with drums in the background with him explaining that the money isn't cheap, but its your only hope in a time of crisis or some B.S. like that.

Well, I went to their website out of curiosity. I was expecting to find a high interest rate, say something like 25%, with a high loan fee attached. But 194% APR???? Who in their right mind would even consider that? That's on top of a $500.00 loan fee. I thought it was a typographical error, but apparently not. If you take all 47 payments on the $2,500.00 loan, (only a $75 loan fee and a much more reasonable 139% APR) you will owe close to $14,000 dollars! You give up $500.00 in loan fess on a $1,500.00 loan before you even see a nickel in your pocket. I found this amazing and shocking on so many levels. I guess I am easy to entertain!

[Guest083013]

this is a teepee
for you to peepee
and not a wigwam
to beat your tomtom

(from the drums in the background....)

[JusticeMutt]

I especially like the BOLD print about how they reserve the right to change the fees & loan products without notice...some people will never learn huh

But to some desperate folks, they will get a loan without even thinking about paying it back

[Rakhir]

I have seen those types of load rates as well. How come they're not illegal I wonder? That's basically loan sharking and under Texas law considered usury which is highly illegal. I wonder how they are getting away with it?

[oldtiger]

Getting it back from the White Man one loan at a time.....

[Doglegg]

Being the lender is of the Native American Nation, some rules do not apply, especially Texas. Same for gambling.

There is a disclaimer on the commercial.

Oh to be more than .0625 and able to claim my percentage of the income.

[Aftershock]

Originally Posted by oldtiger

Getting it back from the White Man one loan at a time.....

I had a simalar thought but didnt wanna get flamed for it lol. Put that idea on a t-shirt

[pyramider]

They can get away with it same way Native Americans can take product onto the Reservation on a demo and keep it.

[TexanAtPlay]

Originally Posted by Marcus78

While watching a little T.V. today, I saw about 5 Western Sky loan advertisements. You know the ones; they have an Indian talking with drums in the background with him explaining that the money isn't cheap, but its your only hope in a time of crisis or some B.S. like that.

Well, I went to their website out of curiosity. I was expecting to find a high interest rate, say something like 25%, with a high loan fee attached. But 194% APR???? Who in their right mind would even consider that? That's on top of a $500.00 loan fee. I thought it was a typographical error, but apparently not. If you take all 47 payments on the $2,500.00 loan, (only a $75 loan fee and a much more reasonable 139% APR) you will owe close to $14,000 dollars! You give up $500.00 in loan fess on a $1,500.00 loan before you even see a nickel in your pocket. I found this amazing and shocking on so many levels. I guess I am easy to entertain!

That beats the 89.99% APR credit card I read about the other day.

My opinion...it's free commerce. Nobody FORCES anybody to sign that contract, and I don't believe it's the government's place to step between a contract between a person and a business, or two individuals for that matter..... Next before you know it they'll put restrictions on turning sex into business or telling you that you can't have sex with a person under certain circumstances.......wait...... darn, they're already doing that!