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What's wrong is the absurd fees they charge. The only difference I can see between them and payday lenders is the shabby facade of credibility they think they h
by sidlls 9y ago
What's wrong is the absurd fees they charge. The only difference I can see between them and payday lenders is the shabby facade of credibility they think they have by being a "tech" company. Nobody who has to scrabble for $250 for an emergency is in a position to drop a 25% vig on top of it in repayment.
- austenallred 9y agoWhat would you charge?
- mixmastamyk 9y ago(Don't know their expenses, however if they don't pay rent downtown they should be saving some money.) High fees go hand in hand with the high risk they are taking of not being paid back. Everyone has to chip-in or the model doesn't work.
- bmelton 9y agoBut if you lend to high-risk creditors, you have to have non-repayment built into the rate. As of the last time I saw an article on it, the rate of default for payday loans was something like 50%. High interest rates are there to absorb the risk.
- jdminhbg 9y ago> Nobody who has to scrabble for $250 for an emergency is in a position to drop a 25% vig on top of it in repayment. How do you know?