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Thread: Chicagoan Files Class Action Suit Against Americash

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    Re: Chicagoan Files Class Action Suit Against Americash

    Quote Originally Posted by Birdzeye View Post
    True, but I'm still more outraged at the business taking advantage of such stupidity. Yeah, I know, that's life, but that doesn't mean I can't condemn what I consider shady business practices.
    Sure, it's shady business practice, but the man knew exactly what he was getting into, and how much he would have to pay BEFORE he signed the contract and received the money. That makes it HIS fault. Now, if the government wants to pass a bill against usury, they can do that, but this issue has no place in a court of law.
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    Re: Chicagoan Files Class Action Suit Against Americash

    Quote Originally Posted by danarhea View Post
    Here's the deal. A man goes into a payday loan outlet and borrows 700 smackeroos. He later cannot make his payments time, so then borrows 400 more which go towards making the payments he is behind. The result? He ended up owing 3500 on his initial loan of 700.

    That's a 500 percent interest rate. So my question to the man is this:

    Are you out of your ever loving mind?

    Another question - Why are you suing? Did Americash put a gun to your head and tell you to take the loan? Of course, they didn't. They had some money. You wanted to borrow some money. They gave you terms which were excessive as hell. You agreed to those terms. IMHO, YOU are one of the reasons that Darwin's Law even exists.

    The question we should ask is not why Americash is a bunch of low-life money grubbers. They are, no doubt about it. What we SHOULD be questioning are the man's intelligence, and also why something like this ends up in court. He is responsible for his own actions, and taking out stupid loans are nobody's fault but his. Period.

    Article is here.
    Personally I was under the impression that there were laws against "usurious" interest rate charges. Apparently I was wrong. I personally find such businesses as being predatory and should have caps on the rates that can be charged commensurate with the costs and risks associated with such loans; something perhaps like 36 to 50%.

    Here is an interesting article with a counter point to my views on such usurious businesses:

    Shurtleff defends payday loan rates
    By Lee Davidson
    Deseret Morning News
    Published: Wednesday, Jan. 30, 2008 12:22 a.m. MST

    Utah Attorney General Mark Shurtleff said Tuesday that banning "payday loans" could hurt the poor more than it would help them and could force more of them into bankruptcies or repossessions.

    But debating against that was University of Utah law professor Christopher Peterson, an expert on predatory lending. He said payday loans are essentially legalized loan sharking that can bury the unwary into deep debt. He said societies for millennia have banned the sort of high interest rates that payday lenders now charge.
    ......

    Shurtleff said, "I've done a lot of research in this area. And I truly believe in my heart of hearts that the people's good is best served by competition" and allowing payday loans as an option besides such things as bouncing checks or pawning goods.

    He said a recent study by staff of the Federal Reserve Bank of New York also concluded that after Georgia and North Carolina banned such loans, former users migrated to costlier alternatives, including bouncing checks (and paying expensive bank fees to cover them), or filing for bankruptcy.

    Peterson, who has written books examining predatory lending practices, said that study was flawed and did not control for many variables that could have increased bankruptcies and bounced checks. He said payday loans do hurt the poor.

    .......

    But since then, the median cap among states is 400 percent, and many states, including Utah, have no caps — which led to the rise of payday loans. Nationally, Peterson said, more payday lenders exist now than McDonalds, Burger King, J.C. Penneys and Target stores combined.


    Deseret News | Shurtleff defends payday loan rates

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    Re: Chicagoan Files Class Action Suit Against Americash

    Quote Originally Posted by Truth Detector View Post
    Personally I was under the impression that there were laws against "usurious" interest rate charges. Apparently I was wrong. I personally find such businesses as being predatory and should have caps on the rates that can be charged commensurate with the costs and risks associated with such loans; something perhaps like 36 to 50%.

    Here is an interesting article with a counter point to my views on such usurious businesses:

    Shurtleff defends payday loan rates
    By Lee Davidson
    Deseret Morning News
    Published: Wednesday, Jan. 30, 2008 12:22 a.m. MST

    Utah Attorney General Mark Shurtleff said Tuesday that banning "payday loans" could hurt the poor more than it would help them and could force more of them into bankruptcies or repossessions.

    But debating against that was University of Utah law professor Christopher Peterson, an expert on predatory lending. He said payday loans are essentially legalized loan sharking that can bury the unwary into deep debt. He said societies for millennia have banned the sort of high interest rates that payday lenders now charge.
    ......

    Shurtleff said, "I've done a lot of research in this area. And I truly believe in my heart of hearts that the people's good is best served by competition" and allowing payday loans as an option besides such things as bouncing checks or pawning goods.

    He said a recent study by staff of the Federal Reserve Bank of New York also concluded that after Georgia and North Carolina banned such loans, former users migrated to costlier alternatives, including bouncing checks (and paying expensive bank fees to cover them), or filing for bankruptcy.

    Peterson, who has written books examining predatory lending practices, said that study was flawed and did not control for many variables that could have increased bankruptcies and bounced checks. He said payday loans do hurt the poor.

    .......

    But since then, the median cap among states is 400 percent, and many states, including Utah, have no caps — which led to the rise of payday loans. Nationally, Peterson said, more payday lenders exist now than McDonalds, Burger King, J.C. Penneys and Target stores combined.


    Deseret News | Shurtleff defends payday loan rates
    That should come about by the legislative process, and not legislated by the courts.
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    Re: Chicagoan Files Class Action Suit Against Americash

    Quote Originally Posted by danarhea View Post
    That should come about by the legislative process, and not legislated by the courts.
    I absolutely agree with you on this.

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    Re: Chicagoan Files Class Action Suit Against Americash

    Here's the solution.

    Withdraw the restrictions on use of force to collect loans.

    Back when people had their kneecaps busted, they stayed away from loan sharks, didn't they?

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    Cool Re: Chicagoan Files Class Action Suit Against Americash

    Quote Originally Posted by Scarecrow Akhbar View Post
    Here's the solution.

    Withdraw the restrictions on use of force to collect loans.

    Back when people had their kneecaps busted, they stayed away from loan sharks, didn't they?
    /facepalm


    Here is the real deal. As sinister as these business types are, the reason they charge what they do is because the people taking out these type of loans are of the highest risk class that can possibly exist. They deal largely with druggies, junkies, and derelicts. If a lower rate could be extended and a profit still be easily turned, sign me up for the new business venture.

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    Re: Chicagoan Files Class Action Suit Against Americash

    Sad part is, this guy is gonna win and probably get paid... well his lawyer will get paid, he however will get something out of it.

    These places exist, and if you're dumb enough to use one, and get yourself screwed over that's your problem.

    The wife an I went and bout some beds for the kids this past weekend, they wanted us to sign up for thier "No interest payment plan". Rate? 26.8%.

    What's the difference between that furniture company and these loan sharks?
    Climate, changes. It takes a particularly uneducated population to buy into the idea that it's their fault climate is changing and further political solutions can fix it.



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    Re: Chicagoan Files Class Action Suit Against Americash

    Quote Originally Posted by ARealConservative View Post
    /facepalm


    Here is the real deal. As sinister as these business types are, the reason they charge what they do is because the people taking out these type of loans are of the highest risk class that can possibly exist. They deal largely with druggies, junkies, and derelicts. If a lower rate could be extended and a profit still be easily turned, sign me up for the new business venture.
    No one thinks about that when they call for regulating interest rates.

    Good point.
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    Re: Chicagoan Files Class Action Suit Against Americash

    I live in Missouri and heard about a similar case in Arkansas a number of years ago. Apparently in AR they have a state law capping interest rates on loans to a "reasonable" amount. Its been a long time ago and I didnt pay a heck of alot of attention but I believe the person sueing won the case due to "unreasonable" interest.

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