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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 nee
by 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 agoYou'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 agoThat'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