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    manutdman's Avatar
    manutdman Posts: 12, Reputation: 1
    New Member
    		  
    #1

    Apr 30, 2006, 08:03 PM
    Payday loan fees typical?
    How much fee do you pay for payday loans? If you check out some of the fees or interest rates here No Teletrack Payday Loans

    Mississippi ($400, 18%)
    Missouri ($500, 75%)
    Montana ($300, 25%)
    Nebraska ($500, 15%)
    Nevada (no limit, no limit)
    New Hampshire ($500, no limit)
    New Mexico (no limit, no limit)

    75%? 25%? Aren't these too high?

    They are more of ripoffs!

    I wonder why these states allow such high fees?
    aqua@home's Avatar
    aqua@home Posts: 565, Reputation: 107
    Senior Member
    		  
    #2

    Apr 30, 2006, 09:29 PM
    I heard that these companies are actually asking people to do something illegal. That is, write a "hot cheque". I've heard people talk about how this is not okay although I'm not sure what they propose you do about it. I guess I was just wondering if it really is illegal? If it is illegal then maybe these interest rates are too.
    Jahiem28's Avatar
    Jahiem28 Posts: 103, Reputation: 5
    Junior Member
    		  
    #3

    Jun 4, 2006, 09:04 AM
    Payday Loans


    Payday loans have become a multibillion dollar industry in recent years. There are over 10,000 payday loan stores across the country. Nevertheless, it is illegal in Georgia to make a payday loan.

    Payday lenders require you to furnish a copy of your pay stub, identification, and a copy of your bank statement to get a short-term loan, usually for about two weeks. They do not perform a credit check, and you write them a post-dated check for the amount you want to borrow, plus a fee of $15 to $30 for every $100 borrowed and an account set-up fee. They will deposit your check if you are unable to repay your loan. Otherwise, if you cannot pay off the loan in time, you must pay the borrowing fees to renew the loan. The annual percentage rate (APR) for a payday loan usually starts at about 390 percent!

    The federal Truth in Lending Act requires disclosure of the cost of credit. You must receive, in writing, the finance charge (a dollar amount) and the APR, which is the cost of credit on a yearly basis. Payday lenders are subject to this regulation
    fredg's Avatar
    fredg Posts: 4,926, Reputation: 674
    Ultra Member
    		  
    #4

    Jun 5, 2006, 07:34 AM
    HI,
    Yes, most are legal.
    The sad part is that many, many people are not well educated enough to even understand what 75% interest means!
    Some also don't know to even ask someone what it means... that's even more sad.
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