On Predatory Lending: Personal Spend Matters!
Since a SCOTUS case in 1978, usury laws have been rendered more or less toothless in the US, and in the process practically given all of us credit cards in our cereal boxes, but still, take a look at this offer of a “fast & affordable” loan – at a mere 29.99% APR!
The payment plan results in paying over $2,200 in interest on a $4,250 loan. As much as I get the concept that a fool and his money are soon parted, this is just evil. Shame on Springleaf.
The Better Business Bureau shows a rather dismal record for Springleaf – nearly all feedback is a dismal 1 star.
What kind of financial straits would you be in for this to actually lower your monthly payments? If men in striped suits carrying lead pipes are knocking on your door perhaps, but otherwise?
My advice is to sign up with PenFed and you will get a used car loan for below 2% APR… that’s how I spell affordable.
Since my own credit score is around 800, why Springleaf felt the need to waste money on sending me this “offer” is puzzling. Then again, if you rake in 30 percent on all loans made, I guess you can afford shotgun marketing.
However, just like all those emails with African ministers of finance needing a few bucks to get their millions out of Switzerland, people must fall for this too. Sad.