There's logical risk mitigation and then there's predatory policues. This is definitely falling towards the latter, 350% return on your money isn't a sustainable practice for ANY industry.
@@Nietsnebarg: Way to avoid the question. If the rate was closed BEFORE the customer agrees to take the loan, it's VERY different than if they don't. Also, normal credit card rates are 20 to 30 percent these days, so the 15% limit is NONSENSE unless they're also going to get involved with ALL credit cards, etc. Disclosure: I never pay a penny of interest on credit cards or consumer loans, etc. But at SOME point, people need to take a certain amount of personal responsibility as long as the terms are HONESTLY DISCLOSED before the initial transaction.
Making short term loans with high enough interest so when you sell it to a collection agency its still a profit. not a smart choice to take the loan but still in the old days if you tried this on people they would bring out the pitch forks. dropping usury laws is really to blame.
In my 20's (in the 80's) I remember getting a variety of mailings offering 30 percent-ish rates for no-questions-asked cash loans. I always snorted and threw them away, after tearing them up. Actions do and SHOULD have consequences.
Does the loan application and agreement written in Chinese language? If ít is , you would not understand what you're getting into . But if it's in English , you are the problem.
As long as the terms are fully disclosed openly, in a reasonable font and position, etc., then sure. Until recently, the credit card companies wouldn't even disclose the total interest that would be charged on credit card loans (until the CFPB forced them to), so there's a LOT of scumminess in the industry. People need to behave reponsibly, BUT they need to clearly have the needed honest terms to be able to do so.
Did the company disclose the high interest rate before these people took the loan?
There's logical risk mitigation and then there's predatory policues.
This is definitely falling towards the latter, 350% return on your money isn't a sustainable practice for ANY industry.
@@Nietsnebarg: Way to avoid the question. If the rate was closed BEFORE the customer agrees to take the loan, it's VERY different than if they don't.
Also, normal credit card rates are 20 to 30 percent these days, so the 15% limit is NONSENSE unless they're also going to get involved with ALL credit cards, etc.
Disclosure: I never pay a penny of interest on credit cards or consumer loans, etc. But at SOME point, people need to take a certain amount of personal responsibility as long as the terms are HONESTLY DISCLOSED before the initial transaction.
Aren’t there usury laws?
I would like to know which MN Representatives received donations from OppFi.
Making short term loans with high enough interest so when you sell it to a collection agency its still a profit. not a smart choice to take the loan but still in the old days if you tried this on people they would bring out the pitch forks. dropping usury laws is really to blame.
Public school education
This loan approve the bank style because this is run by dem policy
Life is tough. It’s even tougher when you’re stupid.
No doubt. Yet looking at the financial status (and decision) of a HUGE proportion of Americans -- there's PLENTY of that to go around re finances.
Does anyone actually feel bad for these people? Lmao. 222% interest? Yeah womp womp.
In my 20's (in the 80's) I remember getting a variety of mailings offering 30 percent-ish rates for no-questions-asked cash loans.
I always snorted and threw them away, after tearing them up.
Actions do and SHOULD have consequences.
Does the loan application and agreement written in Chinese language? If ít is , you would not understand what you're getting into . But if it's in English , you are the problem.
As long as the terms are fully disclosed openly, in a reasonable font and position, etc., then sure.
Until recently, the credit card companies wouldn't even disclose the total interest that would be charged on credit card loans (until the CFPB forced them to), so there's a LOT of scumminess in the industry.
People need to behave reponsibly, BUT they need to clearly have the needed honest terms to be able to do so.