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:Under the agreement Johnson signed, Americash required him to pay back the loan in 24 semi-monthly installments of $105.30 for one full year, totaling $2,611 dollars, equivalent to a 365 percent annual interest rate. After making steady payments for 6 months, Johnson just couldn't dig up the necessary funds to pay off his increasing debt. So Americash provided him a second loan in February of this year for $400 dollars and with virtually the same terms. Now, if he pays off both loans on time and in full, he will have forked over almost $3,500 to Americash, all for $700 in short-term financial assistance.
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.