Let’s play a game. Can you figure out who said the following? “You’re a loser. Why don’t you just jump in front of a train?” “You a f***ing thief, you know. “I’m gonna find you and you gonna be walking like a b***h on the side of the street.” “I’m the guy who’s gonna end your life. That’s who I am.” Find out the answer after the jump!
Why would you ever take out a loan at 400% interest? Because you’re absolutely desperate, or because you have no idea what 400% interest actually means. Well, many people do it every two weeks. It’s called a payday loan, and Slate has an article discussing the findings of a recent study on these “storefront loan sharks”.
The IRS has ended a controversial program that allowed private debt collectors to pursue individual debts owed to the government. The private debt collectors, described as “bounty hunters who collect taxes from vulnerable people for profit,” were allowed to keep 25% of any collected debts for themselves. Before we celebrate, let’s all take a moment to join Senator Charles Grassley of Iowa in thinking about those poor private debt collectors who no longer have jobs harassing and abusing people…
One time we had this huge credit card debt that we just let sliiiiiiiiiiide. When we finally owned up to it, the debt collector told us that the credit card company said we could just pay 85% of it if we paid it all at once.
Here’s a video confession from the former manager of a Virginia payday loan center.
In Minnesota, debt collectors can send a garnishment request directly to your bank and start snatching your dollars without even having through a court of a law.
“I make threats of arrest, property seizure, wage garnishment, and sometimes (usually if it’s a woman) I will threaten bodily harm if there is no payment….”
An Illinois PayDay lender revealed sets the dates on their loans so they’re not governed under state payday law, a Credit Slips blog student discovered after interviewing the company.
The national taxpayer advocated yesterday asked congress to forbid the IRS from using private debt collectors.
There’s debt collectors, and there’s loan sharks.
A proposed cap on payday loan percentages charged to members of the military is nearing final approval. The bill aims to limit the vigorish to 36%, down from the usual 350%. Great, how about the rest of us?