r/extremelyinfuriating • u/JoyousMadhat • 1d ago
Discussion A 500%+ rate for a $2000 loan????
How the fuck is this legal???? They are taking advantage of desperate people. The document was even hidden in tiny texts that I would not have even noticed if I wasn't distracted by their amazing and quick offer.
FYI I instantly clicked off and blocked them. I didn't sign or agree to any loans.
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u/Bad-Luck-Guy 1d ago
This is how poor people get screwed. Then people will take out payday loans and such to make these payments. And the cycle never ends.
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u/MissAAA_2 1d ago
I didn’t even think they were legal in most states anymore
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u/slippingaway83 22h ago
That's why they're operating on Tribal Lands. They have their own laws, it's sovereign land.
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u/Beerduck 23h ago edited 22h ago
But, John Oliver made an episode about this. Shouldn't it be abolished by now?
Oh, wait... this is real life...
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u/Santa_Hates_You 1d ago
Is this one of those Native American loans that have no rules because they are done through the reservations?
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u/Bad-Luck-Guy 1d ago
Says their office is on tribal land. No idea how that affects things. A lot of predatory loans are like this.
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u/nukleus7 1d ago
Fun fact, these tribal loans are not reported to credit agencies as it’s not legal. Most of these loans default and people never pay them back, and they attempt to get payment but ultimately fail and just forget about them too.
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u/ElishaAlison 23h ago
What company is this? I really just want to know who to avoid if I ever do need a loan. (Yeah probably everyone but there's bad and then there's THIS)
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u/Salute-Major-Echidna 23h ago
Usury used to be a straight up crime. 28% interest on a late payment to a credit card was straight up usury. Then all the credit card companies wanted to charge it so it was ok.
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u/pickledpeterpiper 1d ago
I've heard about Native American loans like this...I don't know if "Illegal" is the right word (they might be legal due to it being an independant nation or whatever) but I wouldn't test it...I hope you ran away from this one. That is fricking absurd....I can't imagine the kind of desperation it'd take to borrow 12k to get 2k...good God.
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u/JoyousMadhat 1d ago
Psychological play. They hide the details and make the accept and sign button really noticable and center of attention. Glad I checked
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u/Bankerag 22h ago
And there are people that say a person declaring bankruptcy “costs all of us money”.
Trying to imply it is a moral failure.
The low key brainwashing that happens in the US is mind boggling.
We hear about a company filing for a BK, and it’s called “strategic” but a person, that’s a lazy and bad person.
And what’s amazing is, the company is often zeroing out bondholders who are in fact pension funds and other retirement and investment vehicles held by average people.
A large corporate BK can hurt you individually much more than John who lost his job, but people are too caught up in narratives to realize it.
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u/AppleFan1994 1d ago
You never take a loan without reading the fine print. If you get one of these you deserve to pay the price. Saying I didn't know is not an excuse. It's I didn't read it. All on you.
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u/MissAAA_2 1d ago
Okay watch payday loan scam on Netflix. People did read the fine print and he had the fine print hidden
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u/Salute-Major-Echidna 23h ago
Like they'll say the conditions are on the website and you look and there's no more info than on the sign or pamphlet. And then they update the website later to show a usurious set of numbers and terms.
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u/JoyousMadhat 23h ago
There was another one that obviously screamed scam cuz it was asking me to sign it before I could even view the loan terms
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u/FanDry5374 22h ago
Those rates should be illegal. One of the government's main jobs it to protect people. Read the fine print, but a lot of people in desperate situations are functionally illiterate.
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u/Santa_Hates_You 1d ago
People are just never taught to do these things.
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u/MissAAA_2 1d ago
Agree but that one man I felt bad for it. He read that thing over and over and didn’t realize until the FTC got involved that they literally had like other things hidden within the document that wasn’t on a clickable link, cause everything was done online mostly
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u/tribbans95 20h ago
That was a decent excuse before the times of being able to look anything up in a moments notice. No excuse not to teach yourself about finances, it’s not like it’s overly complicated
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u/dj0ntgirl 21h ago
"People who get scammed deserve it for being stupid/ignorant" is such a brilliantly unempathetic, verging on misanthropic take.
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u/Another_Slut_Dragon 6h ago
Canada here. That would be illegal. But we have functional consumer protection laws.
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u/MissAAA_2 1d ago edited 1d ago
The good thing is if this is a payday loan, it won’t affect your credit but you need to change your bank account right now. You can close your bank account out but remember it might take 10 days but see if you can put a block on them and explain to them what’s going on. Which banks if you absolutely have to.
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u/MissAAA_2 1d ago
Change your bank account and shut down your current one and block them
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u/JoyousMadhat 23h ago
Bro. I have not accepted the loan. I saw the terms, took an SS, and closed out.
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u/Accomplished_Emu_658 1d ago
Its legal because they pay the right people
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u/redmeraki225 9h ago
If this is from a cash advanced place, it's because they don't run your credit to give you a loan, so the longer you take to pay it off, the more money they get from you. Jump away from this place. Those places are predatory to people with poor credit and it'll keep you down. $14,000 paid back for $2,000 isn't worth it.
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