iono1
Familiar Member
Joined: Jan 6, 2011 8:58:24 GMT -5
Posts: 561
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Post by iono1 on Mar 15, 2011 15:09:46 GMT -5
I saw an ad for them on TV, the guy in the ad admits their rates are high. I guess since they're a Native American group operating from their "nation" they can't be stopped. Here's their rates, followed by a link to their website: Loan Product Borrower Proceeds Loan Fee APR Number of Payments Payment Amount $2,600 Loan $2,525 $75 139.34% 36 $298.94 $1,500 Loan $1,000 $500 194.70% 24 $166.95 www.westernsky.com/ Edit: Here's the ad I saw : |
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resolution
Junior Associate
Joined: Dec 20, 2010 13:09:56 GMT -5
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Post by resolution on Mar 15, 2011 15:20:23 GMT -5
It looks like Maryland and West Virginia are not on their list of states that they service, so there is either some limitation on them or they picked out a couple states to skip.
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midjd
Administrator
Your Money Admin
Joined: Dec 18, 2010 14:09:23 GMT -5
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Post by midjd on Mar 15, 2011 17:36:25 GMT -5
I was wondering the same... thanks for looking up the rates. Wow is all I have to say to that. More than $10K for a $2500 loan? $4K for a $1500 loan? What I want to know is 1) who is getting these loans? and 2) What on earth are they spending it on? I can see that without an emergency fund, something like an unexpected car repair can really mess you up - but JFC. My third question would be whether people really know how much they're going to be paying back. One of my friends and a couple of DH's relatives are frequent customers of Rent-A-Center, JD Byrider, etc., and they seem to know they'll be paying "a little more" than they would by paying cash, but I don't think they grasp the actual numbers - just "I need to pay them $100 a week til next December", which I guess seems more manageable. ETA - looks like this is why they aren't in Maryland (interesting reading if you're into these things) www.dllr.state.md.us/finance/consumers/pdf/westernskyc&d.pdf |
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resolution
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Joined: Dec 20, 2010 13:09:56 GMT -5
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Post by resolution on Mar 15, 2011 18:59:10 GMT -5
Wow there is a whole page of names that the company is going under in that cease and desist order. |
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Clever Username
Well-Known Member
Joined: Jan 27, 2011 14:15:59 GMT -5
Posts: 1,313
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Post by Clever Username on Mar 16, 2011 13:10:43 GMT -5
Pshaw. That's nothing.
I've seen loan agreements in the 900% range before.
Granted it's while listing them on a bankruptcy petition.
But that give you an idea of the clientelle.
How's about I rephrase it back at ya? Look at the down and out broke people going into there. Would you loan them money on a 6% margin?
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