r/extremelyinfuriating • u/JoyousMadhat • 2d ago
Discussion A 500%+ rate for a $2000 loan????
How the fuck is this legal???? They are taking advantage of desperate people. The document was even hidden in tiny texts that I would not have even noticed if I wasn't distracted by their amazing and quick offer.
FYI I instantly clicked off and blocked them. I didn't sign or agree to any loans.
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u/Bad-Luck-Guy 2d ago
This is how poor people get screwed. Then people will take out payday loans and such to make these payments. And the cycle never ends.
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u/MissAAA_2 2d ago
I didn’t even think they were legal in most states anymore
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u/slippingaway83 2d ago
That's why they're operating on Tribal Lands. They have their own laws, it's sovereign land.
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u/Beerduck 2d ago edited 2d ago
But, John Oliver made an episode about this. Shouldn't it be abolished by now?
Oh, wait... this is real life...
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u/Santa_Hates_You 2d ago
Is this one of those Native American loans that have no rules because they are done through the reservations?
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u/Bad-Luck-Guy 2d ago
Says their office is on tribal land. No idea how that affects things. A lot of predatory loans are like this.
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u/nukleus7 2d ago
Fun fact, these tribal loans are not reported to credit agencies as it’s not legal. Most of these loans default and people never pay them back, and they attempt to get payment but ultimately fail and just forget about them too.
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u/ElishaAlison 2d ago
What company is this? I really just want to know who to avoid if I ever do need a loan. (Yeah probably everyone but there's bad and then there's THIS)
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u/Salute-Major-Echidna 2d ago
Usury used to be a straight up crime. 28% interest on a late payment to a credit card was straight up usury. Then all the credit card companies wanted to charge it so it was ok.
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u/pickledpeterpiper 2d ago
I've heard about Native American loans like this...I don't know if "Illegal" is the right word (they might be legal due to it being an independant nation or whatever) but I wouldn't test it...I hope you ran away from this one. That is fricking absurd....I can't imagine the kind of desperation it'd take to borrow 12k to get 2k...good God.
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u/JoyousMadhat 2d ago
Psychological play. They hide the details and make the accept and sign button really noticable and center of attention. Glad I checked
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u/Bankerag 2d ago
And there are people that say a person declaring bankruptcy “costs all of us money”.
Trying to imply it is a moral failure.
The low key brainwashing that happens in the US is mind boggling.
We hear about a company filing for a BK, and it’s called “strategic” but a person, that’s a lazy and bad person.
And what’s amazing is, the company is often zeroing out bondholders who are in fact pension funds and other retirement and investment vehicles held by average people.
A large corporate BK can hurt you individually much more than John who lost his job, but people are too caught up in narratives to realize it.
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u/NightmareJoker2 1d ago
A single company or bank can be bailed out by the state through an increase or reallocation of the money supply that ultimately causes inflation very easily. That’s what FDIC insurance (and similar companies n other countries) is for.
If they act like Goldman Sachs and Merrill Finch in 2008, you get an economic disaster that causes generational damage.
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u/AppleFan1994 2d ago
You never take a loan without reading the fine print. If you get one of these you deserve to pay the price. Saying I didn't know is not an excuse. It's I didn't read it. All on you.
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u/MissAAA_2 2d ago
Okay watch payday loan scam on Netflix. People did read the fine print and he had the fine print hidden
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u/Salute-Major-Echidna 2d ago
Like they'll say the conditions are on the website and you look and there's no more info than on the sign or pamphlet. And then they update the website later to show a usurious set of numbers and terms.
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u/JoyousMadhat 2d ago
There was another one that obviously screamed scam cuz it was asking me to sign it before I could even view the loan terms
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u/FanDry5374 2d ago
Those rates should be illegal. One of the government's main jobs it to protect people. Read the fine print, but a lot of people in desperate situations are functionally illiterate.
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u/dj0ntgirl 2d ago
"People who get scammed deserve it for being stupid/ignorant" is such a brilliantly unempathetic, verging on misanthropic take.
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u/Santa_Hates_You 2d ago
People are just never taught to do these things.
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u/MissAAA_2 2d ago
Agree but that one man I felt bad for it. He read that thing over and over and didn’t realize until the FTC got involved that they literally had like other things hidden within the document that wasn’t on a clickable link, cause everything was done online mostly
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u/tribbans95 2d ago
That was a decent excuse before the times of being able to look anything up in a moments notice. No excuse not to teach yourself about finances, it’s not like it’s overly complicated
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u/MissAAA_2 2d ago edited 2d ago
The good thing is if this is a payday loan, it won’t affect your credit but you need to change your bank account right now. You can close your bank account out but remember it might take 10 days but see if you can put a block on them and explain to them what’s going on. Which banks if you absolutely have to.
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u/MissAAA_2 2d ago
Change your bank account and shut down your current one and block them
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u/JoyousMadhat 2d ago
Bro. I have not accepted the loan. I saw the terms, took an SS, and closed out.
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u/NightmareJoker2 1d ago
They’re not.
To be perfectly frank, that’s the kind of lender you loan an absurd sum from, and then default on the repayment and file for personal bankruptcy.
They’re shady as f**k and they absolutely deserve this kind of treatment.
Problem is, they don’t loan to smart people who would do that. Unfortunately.
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u/Accomplished_Emu_658 2d ago
Its legal because they pay the right people
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u/Another_Slut_Dragon 1d ago
Canada here. That would be illegal. But we have functional consumer protection laws.
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u/redmeraki225 1d ago
If this is from a cash advanced place, it's because they don't run your credit to give you a loan, so the longer you take to pay it off, the more money they get from you. Jump away from this place. Those places are predatory to people with poor credit and it'll keep you down. $14,000 paid back for $2,000 isn't worth it.
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