4 ms·
Loan sharking is illegal, but I sometimes wonder how far banks are from that... States craft laws for maximum interest rates, so the banks relocate to where the
by jeromec 16y ago
Loan sharking is illegal, but I sometimes wonder how far banks are from that... States craft laws for maximum interest rates, so the banks relocate to where they can charge the most. The highest allowed currently is 29% I think. Ridiculous. If 100% interest was allowed I don't think a single bank would exercise restraint.
- jacquesm 16y agoThe really nasty thing I think (not sure if that's the same in the US) is that debt is charged with interest monthly but credit balance only annually. So the cumulative effect of interest on interest for debt is much higher than it is for credit. The 29% is pure usury.
- jeromec 16y agoYeah, the game is totally biased in their favor. I got my parents to get their finances in better order. My dad paid off one large balance and somehow ended up with the company owing him a few cents. It did him good to call them up threatening late fees if they didn't send his refund within 30 days.