3 ms·
FYI, for a 3 month daily debit loan like this, 350% APR means paying $60,000 for a $35,000 loan. This is obviously very high, but it's not the 3.5 * the princip
by cm2012 8y ago
FYI, for a 3 month daily debit loan like this, 350% APR means paying $60,000 for a $35,000 loan. This is obviously very high, but it's not the 3.5 * the principle like many people would assume.
- ggggtez 8y agoHow so? You are nearly doubling your money every 3 months. What investments can do that? Crypto? Not guaranteed. Pretty much only usury and actual crime.
- cm2012 8y agoMy comment was just on how APR is calculated for short term loans. Also, you only double your money every 3 months if none of your loans default and you collect everything. Most of these loans default. Profits are way slimmer than you're imagining, even for the scammers (Who I definitely agree should be punished for these practices).
- saalweachter 8y agoWhenever I'm evangelizing the PPACA, I always hit on the regulations around the MLR - the "medical loss ratio", ie, what percentage of premiums are paid back out as medical claims. One insurance company had a plan with a ten-percent MLR! (Marketing plans that didn't cover anything to college kids, of course.) They took in premiums and kept ninety-percent of it as profit.
- rustcharm 8y agoprincipal