Flynrider
Phoenix,#2Consumer Comment
Wed, February 15, 2012
" I don't see how this is legal. "
Why do people always say that AFTER they agreed to pay triple digit interest? It sounds disingenuous. These loans have crazy interest because they are extremely high risk. Even someone whose credit is in the dumpster can borrow if the interest rate is high enough.
It's a basic fincancial rule that the interest rate follows the risk. There haven't been any effective usury laws in this country since the 1980s, so there is virtually no limit to the amount of interest that can potentially be charged (and the amount of risk that can be taken). Sounds bad, eh? The flip side of that coin is that when usury laws were in place, credit was virtually unobtainable to anyone with a spot on their record.
" I had received the money the next day and thought my payment was ... "
Oh, I think I get it. When you wanted the cash, the terms weren't important enough to bother to read them. Now that you have to pay it back, the terms are unconscionable. Is that about right?