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Pay day loan vendors... if you can pay them off, they've lost.

• tim333 8y ago
  I chatted to a guy who worked for one of those. Apparently either wealthy or very hard up customers were not profitable - the wealthy pay to quickly, the hard up not at all. What they wanted were people on the borderline that could pay back eventually having run up some interest.
  • kurthr 8y ago
    You can always pay them off with another loan... until you can't. At a typical $30 of "finance charges" for a $100 loan for 2 weeks (over 400% apr) you only need a few cycles to pay off the principal with fees... then it's all profit!
    • deleted 8y ago
      [deleted]
    • tim333 8y ago
      You'd think so though the leading one in the UK, Wonga seems to be going bust from customer compensation claims. https://www.theguardian.com/business/2018/aug/07/wonga-loans-where-did-it-all-go-wrong https://www.theguardian.com/business/2018/aug/07/wonga-loans...
      • kurthr 8y ago
        That's because there are 2014 regulations in the UK that limit interest to .8%/day and total compensation of loaned amount plus fees. Those don't exist in the US. https://www.bbc.co.uk/news/amp/business-40044871 https://www.bbc.co.uk/news/amp/business-40044871