Quote:I hear you, I've been there, at one point we where stuck in the $500 every other week we owed $555. I don't blame the company though it wasn't anyone's fault we just had more bills then money. I just don't consider it predatory lending, they're upfront on the cost and how much you're paying, for the people using them (myself included for a long time) it's a decision of taking the loan or not paying something. the real solution is helping people out of poverty not punishing the people offering them services.

 

Predatory loans to me are more like the housing loans people where given with the 2 year ARMS and Balloon payments prior to 2008, or any of the "creative" loans before the housing crash.

 

They trap low income borrowers in a cycle of debt.  I'd consider that predatory.  Again, they have their uses. If you can pay it off like you did, then it's not nearly as bad.  But when you can't, and you have to roll over your debt -- that's when it gets really bad.  And that's who they're really marketing to.  People on government assistance including people in the military.  Voters have wanted to put a cap on interest rates charged by pay day loan companies, but they've had lobbyists fighting it at every turn.  Their idea is to get people into a cycle of debt, so they keep coming back for more.

---