The Big Rip-Off

While watching TV today, I saw a commercial that was so shocking to me that I had to stop and watch it again. It was offering to lend money to those people with challenged credit that otherwise could not get a loan elsewhere.

Sounds like real Saints, right? Read on . . .

As the commercial was ending, I glimpsed the fine print of 99.25% interest! An error, I was sure.

I then checked out their website. It looks legit, even has testimonials of people who are actually thankful for this company's service.

When I clicked over to the rates, though, I verified what I had seen on TV. A poor sole that is roped into signing a contract with these schmucks for a mere $2,525.00 will pay in excess of $9,000.00 over the next three and a half years! More over, when I clicked on my state, they post rates as high as 141.42% plus a $500.00 loan fee.

I have to say that I am flabbergasted at the sheer brashness of these companies.

At the absolute least they must be violating our countries usury laws. However, I found in just a little bit of research, that because this company's loans are backed by a bank means that they are exempt from state usury limits.

It would appear, in my state at least, that the consumer has no protection from predatory lending as there are no traditional usury caps as seen in many other sates in the country today.

With today's economy, among all the other things that need fixing in this country, this is one of those things that needs to be a priority.

Yet another act of Big Brother sticking it to the little guy!

And That's What I Think!

UPDATE: Although I have had no personal dealings with this company, the mere thought of them charging outrageous interest rates doesn't set well with me. Even though it will probably do no good, I filed a formal complaint with the Federal Trade Commission Bureau Of Consumer Protection. Yea, me!