The Thread About Nothing Part 179: Cash or Credit?
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08-30-2012, 07:35 AM
Join Date: Sep 2006
Location: Roanoke, VA
Originally Posted by
Isnt it something asinine like 25%?
Sorry it took so long for me to reply. I usually am only on here during working hours.
You may find this interesting:
Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, a consumer must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis). Finance charges can range from $15 to $30 per $100 borrowed. This may not seem like a lot of money until you look at the APR for the loan. A credit industry survey found the average APR for a payday loan to be 300 percent. A recent report for the Missouri Department of Finance found the average rate in that state to be 408 percent!
Of course, Money Mutual won't tell you what their interest rates are until after you fill out an application. I would guess that like most places I have seen, it is at least in the 99% APR range.
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