Payday Lending- A 400% Interest Debt Trap

[physioex]

Run time: 06:00 https://www.youtube.com/watch?v=SzO7lFAiF4Q   Posted on YouTube: May 21, 2009 By YouTube Member: CRLvideos Views on YouTube: 2274   Posted on DU: August 20, 2011 By DU Member: physioex Views on DU: 1080

 
There have been several shows on this topic including one by Frontline. One thing not mentioned in this film is that most these lending businesses are not mom and pop but rather large bank owned.

[Turbineguy]

1. Do business with these people

and you'll always be poor.

[physioex]

2. Not only do they try to screw you....

When you are reasonable stable with predatory lending practices, they screw you on the way to the poor house.

[demosincebirth]

3. who else can the poor do business with...the banks?

[physioex]

4. Ummmm....

The corporations are the same regardless. Frontline did a segment and mentioned that most of these businesses are owned by the likes of Bank of America and Wells Fargo. It is just a tiered service based on your socio-economic status. I would use the term "business" pretty loosely its more of a loan shark scheme.

But to answer your question, I would say that the negative impact that these businesses far outweigh the benefits.

[demosincebirth]

5. the majority the fast cash and payday loans business' here in Oakland are

owned by Middle-easterners not banks. They are the only ones that will cash checks for low incomers who have no bank accounts and no credit...and sometimes no lic or ID. What do they do? I know they are rip-offs. The states should enact laws limiting the amount they can charge for cashing a check and lower the interest that they can charge for loans. That would help a lot

[noiretextatique]

7. Golden Gate Capital Completes Investment in California Check Cashing Store

http://goldengatecap.com/team1.shtml

[demosincebirth]

8. What's your point? I don't understand

[noiretextatique]

9. these folks aren't middle eastern

i live in oakland too :hi:

[noiretextatique]

6. poverty industry scams

stealing money from those who can least afford it. just another way the big banks are screwing people.