Yet more ways to fuck the public

I noticed that there have been several interesting tidbits of financial news lately. It seems that the Federal Online Gambling prohibitions have been lifted, that the quick money places no longer need to list the interest and finance charges even in the near impossible to read fine print and that the average annual interest rate is now over 500%.To the 99%, you are welcome.

Obama tried to get Federal Laws put in place to limit fees and interest rates but under the current Administration those rules have been rescinded and it is up to each State.

quote:

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The average loan term is about two weeks. Loans typically cost 400% annual interest (APR) or more. The finance charge ranges from $15 to $30 to borrow $100. For two-week loans, these finance charges result in interest rates from 390 to 780% APR. Shorter term loans have even higher APRs. Rates are higher in states that do not cap the maximum cost.

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quote:

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High cost payday lending is authorized by state laws or regulations in thirty-two states. Fifteen states and the District of Columbia protect their borrowers from high-cost payday lending with reasonable small loan rate caps or other prohibitions. Three states set lower rate caps or longer terms for somewhat less expensive loans. Online payday lenders are generally subject to the state licensing laws and rate caps of the state where the borrower receives the loan.

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source

The rules that were rescinded involved the Advertising. In the past the TV ads had to show terms and interest, even though it was fine print and near impossible to read. Now the TV ads don't have to include interest rates and fine print beyond saying such things are determined based on the state laws. There is nothing beyond more come-ons like "First scheduled payment fee dropped."I'll see if I can find the source for that again but just watch a few of the payday loan ads on TV. Edited by jar, : appalin spallin swon ----> show