Um, what.

blazinlow89

Original poster
Member
Jan 25, 2012
2,088
Watching TV (not the OS) and an ad for "Western Sky financial services". They say it's cheaper than a pay day loan.

In the fine print it says average person borrowing $5,000 would repay $486.58 for 84 months, Uh WTF.

Website confirms it.

View attachment 19001

Im sorry if any of this offends any one, or we are not supposed to talk about this on here, but seriously, this is plain insane.
 

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HARDTRAILZ

Moderator
Nov 18, 2011
49,665
It is horrid, but it is "cheaper than a pay-day loan."
 

Blckshdw

Moderator
Nov 20, 2011
10,706
Tampa Bay Area, FL
Yeah, some of my friends and I had the same discussion when we first saw those commercials too. Can't imagine (thankfully) being in a situation where jumping down THAT rabbit hole would seem like a good idea. :hopeless:
 

The_Roadie

Lifetime VIP Donor
Member
Nov 19, 2011
9,957
Portland, OR
Isn't the free market system wonderful? Somebody will offer a product in almost ANY market. If there's no buyers, they'll withdraw from the market. If enough buyers show up, the vendors thrive.

Similar buyers to those who collect lottery tickets, which I characterize as a "stupidity tax." :yes:
 

Wyle

Member
Dec 4, 2011
200
$500 loan fee for borrowing $1000. Man am I in the wrong business.

Just curious though, do the rates drop by a factor of 10 if you don't live in Alabama?? :lipsrsealed:
 

fishsticks

Member
Nov 21, 2011
433
the roadie said:
Isn't the free market system wonderful? Somebody will offer a product in almost ANY market. If there's no buyers, they'll withdraw from the market. If enough buyers show up, the vendors thrive.

Similar buyers to those who collect lottery tickets, which I characterize as a "stupidity tax." :yes:


My dad has played the lottery for years. He's won several times, a few times with with just one number off from the big score. Somehow, amazingly, he's AHEAD playing the lottery.

The man has a golden touch, I won $500 off a scratch ticket he stuck in my stocking one Christmas.

My mom has won a couple grand on cheap slots before too.

I've gambled with real money once in my life. I put $1 into a video poker machine. It got my father in law a free Pepsi (free drinks if you're playing video poker) and I doubled my money. I took my $2 (and his free Pepsi) and went on my way. The lady a couple machines over about killed herself clambering over stools to get to the machine I just left.



(Note: Results not typical.)


 

Wyle

Member
Dec 4, 2011
200
the roadie said:
Similar buyers to those who collect lottery tickets, which I characterize as a "stupidity tax." :yes:

I probably throw down a dollar once a month for a lottery ticket. Not even in the noise compared to the other taxes we endure.

Eons ago, our small group at work did the dollar-a-week pool thing for the lottery. Our supervisor was in on the deal too. The manager ranted on him for being older and smarter and still wasting his money.

His reply ... "Its insurance. Just in case these dufasses actually win the damn thing, I get to walk out the door with them instead of coming in your office to explain what happened." :biggrin:
 

4wVoy

Member
Feb 4, 2012
254
even in my roughest of times financially, i never went for the pay day loans or anything like it. just puts you back even more
 

blazinlow89

Original poster
Member
Jan 25, 2012
2,088
Wyle said:
His reply ... "Its insurance. Just in case these dufasses actually win the damn thing, I get to walk out the door with them instead of coming in your office to explain what happened." :biggrin:

:dielaugh: Guys at work do it sometimes $5 a head, usually get around 2-300 tickets, and if anyone goes out of town they are put to task with half the money.

4wVoy said:
even in my roughest of times financially, i never went for the pay day loans or anything like it. just puts you back even more

I have done personal loans, only when I want to make a large purchase and don't have it saved up, or just want extra money for a trip or something. Usually paid back in about 3 months.
 

harmless

Member
Nov 21, 2011
2,049
Has anyone done the math?! 116% interest?! :faint:

I'm definately in the wrong line of work. :undecided:



A $5,075 loan @ 116.73% interest. :squint:

$486.58 x 84 months = $40,872.72 :stars:

Borrow $5,075 pay back $40,872.72.

That's a $35,797.72 heap of profit for the loan sharks...

Sounds like an AWESOME deal. Sign me up. Twice.

d34fc96f.gif


I'm so glad Canadian Law put a cap on interest rates... and regulated the shit out of loan sharks.
 

HARDTRAILZ

Moderator
Nov 18, 2011
49,665
I did the math and laughed. Pretty awful stuff to do to yourself. Will likely never get yourself back on track if you have to do a deal like that.
 

harmless

Member
Nov 21, 2011
2,049
HARDTRAILZ said:
I did the math and laughed. Pretty awful stuff to do to yourself. Will likely never get yourself back on track if you have to do a deal like that.

Agreed. Right up there with cheating on your spouse. :biggrin:

How do companies justify that? Better yet, how does the gov't justify that?

No wonder money markets are melting down. :crazy:
 

Short Bus

Member
Dec 2, 2011
1,906
harmless said:
Agreed. Right up there with cheating on your spouse. :biggrin:

How do companies justify that? Better yet, how does the gov't justify that?

No wonder money markets are melting down. :crazy:

It's Native Americas on a reservation. They don't have to follow US laws.
 

blazinlow89

Original poster
Member
Jan 25, 2012
2,088
LMAO, I did the math and though I forgot how to do math. I was like either I am retarded or this is seriously insane.

I do like the "Sure the money is expensive" line, Its like we are here to help, we know its going to take you an eternity to pay it back, and we are ripping you off for enough to buy a BMW, but we are here to help.

At any rate, it's like kicking yourself when your down repeatedly and expecting a different outcome. Sure you might get back up, but your ass will be back on the ground.
 

Voymom

Member
Feb 3, 2012
2,523
That would be a lower interest rate than what I had when I bought my truck lol

Phantom was spotted at a stealership, and I intended on waiting for my income taxes to pay cash, but I didn't want them to sell it before I got my tax refund so I just got financed through them. The stealership I went to was a "Any credit type approved". My interest rate was 23.8% The bank was going to get about $2900.00 in intrest, but we paid it off before we even had to make our first payment, bank was PISSED!

I would not do something like that unless I could pay the loan back in full to avoid all the extra fee's and ungodly interest payments.
 

blazinlow89

Original poster
Member
Jan 25, 2012
2,088
Voymom, unfortunately when I bought the TB my interest rate was/is insane. It was the first vehicle I ever financed, I had NO credit, I paid Under "kbb/NADA" price at the time so I figured refinance would be a breeze. Well 6 months in the truck lost 6k in value, went from being worth 19,500 to 13k. So I worked on getting what I owed lower. Needless to say almost 5 years in I owe less than it's worth, but no one will touch it for refinance because of the mileage. So I will pay it off and keep the truck till it literally turns to dust.

Do I regret it, NO. I got a vehicle I absolutely love, I learned a very valuable lesson in life, finances, and how the the credit system works. Interest rate is 18.99%, I paid 18,599 back in 07'. Sure if I had waited 6 months before I bought SS's where going for only slightly more at the time. My truck will be paid off early next year, I might by something different but we are going for a house first. So priorities are necessary.
 

Short Bus

Member
Dec 2, 2011
1,906
Voymom said:
That would be a lower interest rate than what I had when I bought my truck lol

Phantom was spotted at a stealership, and I intended on waiting for my income taxes to pay cash, but I didn't want them to sell it before I got my tax refund so I just got financed through them. The stealership I went to was a "Any credit type approved". My interest rate was 23.8% The bank was going to get about $2900.00 in intrest, but we paid it off before we even had to make our first payment, bank was PISSED!

I would not do something like that unless I could pay the loan back in full to avoid all the extra fee's and ungodly interest payments.

Their APR is 116.73%-234.25% and for a 5K loan you'll pay $35,797.72 in interest and a $75 dollar fee to get ass raped.
 

Voymom

Member
Feb 3, 2012
2,523
Short Bus said:
Their APR is 116.73%-234.25% and for a 5K loan you'll pay $35,797.72 in interest and a $75 dollar fee to get ass raped.

Well NVM then lol I guess the stealership didn't give me to bad a deal :smile:
 

Boricua SS

Member
Nov 20, 2011
3,080
Ohio
yea, if worse to came to worse, I'd rather use my credit card at 7% interest, over those pay day loans or this loan we are talking about here...
 

DJones

Member
Jan 21, 2012
701
St. Petersburg, Florida
I won't ever take out a loan if I can help it. My cousin says I must, so I have credit to take out more loans. She works at a bank.
 

Wooluf1952

Member
Nov 20, 2011
2,663
Milwaukee, Wisconsin
DJones said:
I won't ever take out a loan if I can help it. My cousin says I must, so I have credit to take out more loans. She works at a bank.

She's right, unless you have cash to buy a house. That's if you even want to buy a house.
We pay for everything with a credit card and pay it off completely every month.
We have excellent credit and, using a card that pays dividends, we make money.
 

Dad-O-Matic

Member
Dec 5, 2011
228
harmless said:
Has anyone done the math?! 116% interest? I'm so glad Canadian Law put a cap on interest rates... and regulated the shit out of loan sharks.

They only way I see that they can get away with it is because they're on Indian (Native American) land and don't fall under state jurisdiction as defined below. Like building casinos where gambling is illegal, they can do pretty much whatever they want.

usury n. a rate of interest on a debt which is exorbitant and in excess of the percentage allowed by law. Each state sets its own maximum interest rate. Courts will not enforce payment of interest on a loan if the rate is usurious, so a loan may result in being interest free. Charging usury as a practice is a crime, usually only charged if a person makes a business of usury, sometimes called "loan-sharking." Banks and other commercial lenders generally are not subject to anti-usury laws, but are governed by the market-place and the competitive rates triggered by loan rates to institutions set by the Federal Reserve Bank.
 

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