the New Loan Sharks

[CoryKS]

If they REALLY want to "stay competitive" they should be more responsible about who they approve for credit cards instead of jacking with people by putting ridiculous fees and fines in microprinted legalese.

As it is now, those with a sense of responsibility are subsidizing the irresponsible users of this "service."

Banking in general has become really shady in the last 30 years or so. But I guess that is a different subject.

Perhaps they should require that a customer must pass an "economic literacy test" in order to be approved for credit? Racial backlash in 5...4...3...

 

[Cryozombie]

However, I completely disagree with any restriction on interest charges, personally. I don't think that should be legislated at all. The market should decide according to the risk associated with the loan.

I'm not in favor of government regulation on the charges , either fees or rates... but I think that they should be made to print all fees, costs and % upfront in plain english as opposed to hiding it in fine print 6 pages into their documantation in language so obscure that the people getting the cards have no real idea what it is saying, and then being able to hide behind the excuse "Well, we gave them the info, we cant make em read it!"

 

[SFC JeffJ]

I'm not in favor of government regulation on the charges , either fees or rates... but I think that they should be made to print all fees, costs and % upfront in plain english as opposed to hiding it in fine print 6 pages into their documantation in language so obscure that the people getting the cards have no real idea what it is saying, and then being able to hide behind the excuse "Well, we gave them the info, we cant make em read it!"

I agree, full disclosure all all fees, inerest, ect. would be the best direction for any regulation/lesislation to take. If people saw how much they were paying, I'm betting not nearly as many people would make use of their services.

On a bit of a side note, from what I've read, isn't a helluva lot of money laundered through these check cashing busnisess?

Jeff

 

[DavidCC]

1147% ?!?!?!

Get a freakin' rope. Bring out the rifles and the portable adobe wall. That's the sort of thing that really should be illegal. Preferably illegal as in "punishable by hanging, drawing, quartering and being left for the army ants."

well, if you cash a check for $110 and get back $100 and they hold it for a week in return for that $10... that calculates to an insane Annual Interest Rate, but it's really only $10.

What would a week's worth of interest be on $100 at 7% APR? .07/52*100 ?? that's pretty close to nothing. 13 cents or something?

 

[Senjojutsu]

Here is another ticking financial timebomb for all of us who have credit cards with reasonable rates.


http://en.wikipedia.org/wiki/Universal_default


...be afraid, be very afraid.

 

[Phoenix44]

Well according to AP News, "Bank of America Corp. said its fourth-quarter earnings rose 47 percent"

I guess they can afford to cut their customers a little slack.

 

[Flatlander]

Well according to AP News, "Bank of America Corp. said its fourth-quarter earnings rose 47 percent"

I guess they can afford to cut their customers a little slack.

Shareholders of Bank of America Corp might disagree.