I was in a suburb recently and a chain pawnshop company, quite famous in Australia and very legit had it's door open and second hand DVD's for sale, so I went to check if there were any I wanted.
A woman walked in, a person who has been disadvantaged in life and not very intelligent, a person who needs protection in our society.
She needed $50. She needed it to go to her sister's funeral.
I listened in.
If she left her wedding ring for 5 days they would give her $50 and then give it back when she paid $67.50. She was terrified that she would lose her ring, it may be substituted, it may be sold etc.
She was frightened. She was reassured.The guy serving her was charming and polite and understanding and even sympathetic.
I was shocked, that is 38% interest for 7 days.
This is a legit and large chain and it is feeding on the disadvantaged.
This is professional loan sharking.
How common is this?
I felt cheapened as a human being that a legit company could do this.
Sorry just a rant.
BTW I gave her $100 and told her I found it on the floor. I didn't buy any DVDs.
Welcome to Australia 2014. :(
And good on you Cindy, what a lovely thing to do!
Not the Australia I want to have.
Oh and there is nothing nice about me, it was what anyone would do.
It's all over the UK.My local football team is sponsored by these money grabbing reptiles who's specialty is "payday loans" where small sums of money are repaid with massive interest.It's always the most disadvantaged who are targeted,can't get a loan?part time minimum wage job? on benefits? No problem.
These people disgust me preying on the poorest
It is a thin edge $50 seems so little, but it costs you $17.50 for it!!
Evil.
If she couldn't pay she loses her wedding ring.
She wasn't told that and it was her greatest possession.
That is Evil.
Pay day loans we'll cover your shortage till your pay comes in but we're going to change you so much interest that your going to come back to us again next week. Proof that someone who is nice to you is not necessarily your friend. I know the tabloid newspaper in Sydney runs a column every couple of weeks on a Thursday about some poor person who has been taken by these outrageous interest rates.
QuoteOh and there is nothing nice about me, it was what anyone would do.
I wish it were what anyone would do. You're a champ.
And it's not evil, exactly -- it's capitalism. (Which may be a distinction without a difference, but I won't go there...)
My local payday loan outfit charges a 10% commission to cash a personal check.
High interest for poor people is the norm, unfortunately. No wonder the rich get richer and the poor get poorer. Interest rates plus 'fees' often add up to double by a months time.
Years ago I was in a situation where I used a payday loan company to pay the rego on my car with the interest setting me back the next pay I had to use them again and again it's the worst decision of my life.
Now I just go without if I don't have the money they don't deserve that much interest it's just legalised robbery.
There was another company that cashed cheques straight away but it costed you 10% of the cheques value and the cheque I wanted to cash was for $4000 so it was going to cost me $400 to get it cashed, I told them to go jump took it to my bank and got it cleared in 24 hours for $20.
Ye, payday loans are just legal loansharking. Instead of breaking legs, they sue you for more of what they already know you don't have.
You are truly a wonderful for doing such a thing Cindy
The other side, shocking.
Cindy = :angel:
Quote from: Cindy on May 20, 2014, 06:15:10 AM
Not the Australia I want to have.
Oh and there is nothing nice about me, it was what anyone would do.
Pawn shops and payday loan places are in nearly every town all over the would and seem to feed upon the less fortunate and desperate - Most seem to be legalized loan sharks imo as well - Such behavior makes me sad
You're tops in my book Sis
Hugs
Quote from: Cindy on May 20, 2014, 06:15:10 AM
Oh and there is nothing nice about me, it was what anyone would do.
You raised the average level of goodness in the world. Not everyone manages that (and not everyone tries).
You are what we should aspire to be.
It's so sad that these operations are around, but I guess it's considered "harm minimisation" over criminal loan sharks.
Mind you though, their behaviour isn't far off - the lack of disclosure is deliberate and preys on those who don't know better. :(
The sad part is that the metal in the ring probably was worth way more than $50, not withstanding the sentimental value which cannot be estimated.
loan sharks have probably always existed, and the only ones i know that have forbidden it, are the muslims.
i'm really glad to know that there are others who think that what you did is something anyone would do. angels are just normal people with a big heart.
Quote from: big kim on May 20, 2014, 06:17:40 AM
It's all over the UK.
It's all over the US as well. Pay day loans - don't get me started. Then here we have "rent to buy" another means to seperate people who have very little from ALL of that little.
Good for you Cindy! Hugs!!!
Erin
Cindy, what you did is beyond "nice". It was a wonderful thing you did in helping that woman.
You said "Oh and there is nothing nice about me, it was what anyone would do." MALARKEY! Probably 90+% would have walked away and not given her and her need a second thought.
Now I DO wish anyone would do this sort of thing but they wouldn't so give yourself a pat on the back, okay!
My sister got into sooo much debt with this type of loan. Bless her to bits trying to stand on her own feet. It wasnt antill she was about to loose everything that i found out about it.
i payed it off for her. And told her all she had to do was vist more often. And come to me for intrest free loans in future.
And cindy. ITs what any decent person would do.
Now get yourself somthing nice :)
No, you're wrong, I'd say most people wouldn't do that; you're apparently a wonderful person.
Well done, Cindy.
But I'll play devil's advocate a bit here. Banks give loans to people that are low credit risks. People who use these sort of places are high credit risks, so they don't have other options. And so although it's a terrible deal, these payday loan places are offering a service to risky people who wouldn't otherwise have options -- and likely because they've made poor decisions about money in the past.
But charging 10% to cash a check is going too far. In the US the issuing bank will cash it for free...does it not work like that in other countries?
Quote from: Taka on May 21, 2014, 04:50:47 AM
loan sharks have probably always existed, and the only ones i know that have forbidden it, are the muslims.
Judaism forbids what it calls usury -- charging unfair amounts of interest for loans. So technically Christianity should be against it as well.
Exodus 22:25 — If you lend money to one of my people among you who is needy, do not treat it like a business deal; charge no interest.
Quote from: Ms Grace on May 20, 2014, 06:10:18 AM
Welcome to Australia 2014. :(
And good on you Cindy, what a lovely thing to do!
I second that! Very nice gesture Cindy. :angel:
Cindy, well done.
Quote from: Cindy on May 20, 2014, 05:58:45 AM
BTW I gave her $100 and told her I found it on the floor. I didn't buy any DVDs.
Just made me cry, Cindy. A HUGE hug for you sis!
Quote from: katiej on May 21, 2014, 09:58:55 PM
Judaism forbids what it calls usury -- charging unfair amounts of interest for loans. So technically Christianity should be against it as well.
Exodus 22:25 — If you lend money to one of my people among you who is needy, do not treat it like a business deal; charge no interest.
note that "one of my people". it's only forbidden to take interest from other israelites. which is why they could be money lenders in europe, even when the pope forbade christians from taking interest as he meant it was a sin.
seems like i was a little wrong though. seems like the english king once forbade interest, but that probably didn't last too long.
Islamic countries also do loans where a fee is payable. Just they frame them differently. Have been doing so for hundreds of years.
Just because these people are "high risk" doesn't mean they should have to pay >1000%apr interest rates and the like that many pay day loan companies operate with. It is still immoral and is solely to take advantage of people. People should use credit unions but lots of people don't even know about them since they are non-profit generally they do not throw ads all over the place with your money.