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I was born in a post-USSR, but now European country, where payday loans entered the market in 2009. All I can say is - Google did it the right way, as this busi
by aavotins 10y ago
I was born in a post-USSR, but now European country, where payday loans entered the market in 2009. All I can say is - Google did it the right way, as this business model is very, very evil. Until strict regulation takes place, payday loans with APR in hundreds of percents should be considered loan sharks.
They don't do any good, I've seen it with my own eyes. At first it seems like a nice idea, but eventually poorer and socially endangered groups of people use these loans to pay off other loans or just to make ends meet - again, again and again. That essentially binds them in an infinite loop, which is bad. APR of 300% is madness per se!
- lujim 10y agoThis whole argument has been rehashed over and over. The argument for allowing payday loans are generally. - If the default rate is very high, then the option is high APR payday type loans, or no loans. You just can't provide prime interest rate loans that have 50% default rates. - Saying the APR is 300% is just like saying the cost of living is $30,000 per year because that is the annual cost of a hotel room. Hotels are not meant to be used a year at a time.