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originally posted by: Aazadan
a reply to: toms54
Some states have tried that and it doesn't work. I forget which states offhand, but a few have attempted to implement maximum APR rates of 36% per year and when they did, it put the payday loan vendors out of business. But what rose in their place was online shops with even worse interest rates than what was already in place.
The fix probably involves getting people into the banking system so they can take advantage of credit. Even something as simple as a secured line of credit based on declared possessions someone has could go a long way towards getting people out of these interest rates.
I don't think it's possible to make everyone financially responsible, but credit lines could at least make less of their money disappear.
originally posted by: Edumakated
There are secured credit cards. You put up like $500 bucks and the card allows you to use credit up to that amount. Some people take out "title loans". These are loans typically secured by your car title, so if you don't pay the loan back, the loan company can come after the car.
It would be extremely easy for a church or community group to offer low rate personal loans, but they don't. Why?
originally posted by: toms54
a reply to: Aazadan
Let's just agree that everything you said was true. I don't know the exact figures but all your posts in this thread seem to reflect what I believe about this subject. So if all that is true, what is the solution? Just make it all illegal and let the demand for this go unfulfilled? Because I, for one, would really like to see these places go away.
originally posted by: Wide-Eyes
The only thing I'm left to say is that they work for some people. A contract is agreed without the hidden charges that banks sometimes put onto people.