Big Banks Behind Payday Loan Scams

the center for responsive all lending
and credit slips dot org found out that major banks are actually behind these
credit ap read it predatory uh… payday loans and this is
something that we have talked about on the show before the payday loans are
horrible therefore renders basically what they do is they take advantage of
marble individuals are who need money in the needed fast and it won’t happen
money with rediculous a_t_r_s for instance i’ll give you an example that i
looked up at their is eight pages long company known as western sky if you are looking for a fifteen hundred
dollar loan they will actually emilie ask u for five
hundred dollars upfront as a loan fee me beckwith forces in bilbao wrote that
from another place of business for faith to pay renewal if you can see that was especially busy
how dense has a name info charming that chinese aca so you need we have to pay back five hundred dollars
and your a p_r_ and i’m not making this up is two hundred thirty four point twenty
five percent it’s in this incredible there there they
were told that the average interest rates are four hundred fifty five
percent yes in this can you imagine yap i can imagine it’s happening all
over the country and it’s not these little independent companies it’s
actually the big banks using these companies as another way to profit ok diseased
accepted these companies have to get the money from somewhere they didn’t go get
a low-interest loan from a bank because you’re solvent and take that and give it to people
hasset on down to the people in his basic screwing the the poor absolutely and that’s what
happens again and again uh… who cares if you know we took taxpayer money to get us out of this economic disaster
that we created ourselves let’s go turnaround is for them over as
much as we possibly can so maybe some of the numbers add that we
found uh… major banks provide over one point
five billion dollars uh… in credit available to fund major
payday lending company so they’re spending a ton of money uh… when it
comes to these paging companies i had a major banks indirectly find
approximately five hundred fifty thousand pages loads per year totally sixteen point four billion in
short term payday loans and again i’d love that you mentioned churning because
it is a vicious cycle they take out these loans me realize maybe it helps me in that very minutes at a certain billed
at the same time hiding it deeper hole because now i have to pay
these massive interest after it’s and and that’s what happens people
have hopeful credit card is no different if they had a credit card you get too
far and that if they had another credit card is yours if you give your payments
of your credit rating is unheard if they had another credit card you take
a cash advance off of that today this particular and and uh… that’s exactly
what’s happening here but it’s happening to working people forgetting advance on their salary and by the time they left a check of the
it’s already spoken for because they have to pay back these payday loan
companies and then the big banks are giving money shockingly getting money from these very long time right at the last thing that we stop
this story is that all of these above-mentioned banks received heart uh… i mean that’s obvious but uh…
again date take our taxpayer money when they needed in turn around these
crossover is unbearable and the government says that they’re gonna do
something to regulate this and take care of it but they’ve been very slow in
doing so so these page a_ companies are all over the place all throughout the
country day continuously alleged out this money if he’s really high interest
rates and people keep digging themselves in deeper and deeper debt yet every in rescuing the bags that you
are probably see supporting the bath with whatever good do you think may have
been part of rescuing the banks and there was good reason to do so and keeping our
financial institutions solvent untrustworthy prevents a run on the back
banks and as little as i know about the economy a run on the banks not good
uh… and and the fact that those guys were rescued but the fact they were
rescued without any rules attached to that rescue that they
were deserves just aren’t you need me not about his honor bus but whatever the
hell you want to this kind of stuff happens when they’re you know that
there’s just this lack of really what the banks one of the

99 comments on “Big Banks Behind Payday Loan Scams”

  1. EMdemo says:

    "totaling" is spelled wrong at 1:53 lol

  2. PaddyCollector says:

    Mafia charges less. And you can just pay them with favors instead.

  3. ohbuddyiliketowatch says:

    @SlacktiveInAction they are you tube's ads not tyt's

  4. KnodoffFan says:

    @ohbuddyiliketowatch They do get paid however, as they are partners, I hope you know.

  5. ohbuddyiliketowatch says:

    @KnodoffFan i get that but that is just the way the world works right now… doesn't make it right but what are u gonna do….. stop trying to educate people???

  6. F. Yo. Couch says:

    Loan Sharks.

  7. F. Yo. Couch says:

    Ways to keep the poor poor.

  8. kenshin9894 says:

    @dankbot420 wrong loan sharks have much lower interests 😀

  9. cowpacino says:

    if you want an even smaller loan, like 300 bucks or so, the APR is around 400%

  10. neopersia99 says:

    @Cirocco201 In the US too. Two payday and one loan on your car place.

  11. nster says:

    450 000 or 550 000?

  12. Ted Wahrburg says:

    This country is a powder keg. This shit cannot go on forever. I picture riots in the street. Also, watch as people start defaulting on this. This country is fucked.

  13. MoMember88 says:

    Banks get bailed out we get sold out

  14. abexylol says:

    Screw us over? I didn't know somebody put a gun to your head and forced you to take these loans..

  15. HyrbidHermit says:

    I used to work at a place that offered payday loans. At a manager's meeting, store managers were pressured by corporate to push payday loans on customers because the loans are so profitable. The reason they're profitable is because it's a never ending cycle and people will keep taking them back out and repaying the origination fee.

  16. Therrydicule says:

    @KissFromDaddy Easy to say, but there is two details you forget: 1. The total US consumer debt (as May 2011) is $7915.14 per person, when the median income is $53283, there is a systemic problem. 2. there is nothing wrong with debt as such, as long as the principal keep a certain value (no bubble) and the debtor don't end up paying more than the total variable value in real term. If we speak of a business, the boss have to pay the wage at any time without taking more debt.

  17. Epizestro says:

    those numbers seem surprisingly small, over here in England I've seen one with about 1700% interest?!

  18. The Lee MD says:

    The payday loans are pretty bad, but as far as the credit card debt, I have to say people a lot of times get themselves into a deep hole and it is their own fault. I only say that because of a person I know who has a very expensive car and other luxuries and then complains about how much debt he has. It's obnoxious.

    Nonetheless, these payday loans seem directly targeted at the vulnerable and the poor, which in my opinion is reprehensible.

  19. hamrite says:


  20. adamsworld2k8 says:

    i say destroy all the banks and start from scratch!!

  21. Gašper Gruden says:

    Who the fuck would think that taking a 240% interest loan would be a good idea?! I mean I'm relatively poor and I still know how percentages work (and what interest is).

  22. DisProveMeWrong says:

    How did I know the last word was going to be "scams" before I even clicked the link

  23. Liqtor says:

    We had this problem in sweden, but we called them "Text-loans", because a person could just text their account nr to the lenders and get something like a few hundred dollars. When alot of kids started getting in to some really bad financial sitiuation we REGULATED it. Now, three years later, its more or less gone. Our goverment works and we can regulate banks.

  24. fantasy0coach says:

    It is ass backward that the harder someone finds it to make repayment, the more they charge them. The progression by banks to become the scum of the earth was not short lived.

  25. ShogaNinja says:

    This just in: Banks have been found to be responsible for AIDS, MERSA, Cancer, Late Term Abortions, Poverty, Famine, Unemployment, Global Warming, Pollution, Fukushima Daichi, Chernobyl, The Challenger Accident, The Mafia, The Illuminati, The 1%, Birth Defects, Heart Disease, Government Corruption, Teen Pregnancy, Extinction, Endangered Species, Murder, Theft, Robbery, Burglary, Assault, Battery, Fraud, Child Abuse, Pedophilia, MJ's Death, Homelessness, and otherwise ALL EVIL IN THIS WORLD!

  26. peoplelikingpeople says:

    the rates are ridiculous for sure, but they're that high because the type of loans these are are much harder to recoup. For every person that pays 400% interest, there's a couple people that never pay back anything at all. And yes the banks are still profiting at the end of the day

  27. peoplelikingpeople says:

    @fantasy0coach yeah but no serious bank would lend out to high risk customers at a low rate because a good percentage of them never pay back at all. The interest by the payers wouldn't be enough to cover the people who don't pay anything. Not saying it's wrong or right, but that's how it is

  28. RainerWarrior666 says:

    @dangerouslytalented Would be cheaper. They aren't that bold.

  29. peoplelikingpeople says:

    @TheFunkyDomination it is ridiculously high. But these are supposed to be very short term payday lones just to hold you over. So let's say you're expecting a paycheck in 5 days but need some money to hold you over. You borrow $500 at 400% annual interest. That comes to $27 for a 5 day period. So you pay $27 to borrow $500 for roughly a week. It may seem ridiculous but for people scraping by it's better than no option at all. And the % is high because the # that don't pay back

  30. fantasy0coach says:


    No serious bank would lend out their own money to high risk borrowers at all, in the past. But, thanks to government deregulations they know they will sell the loans off to investment funds and hand over the risk, then they will charge the purchaser to service those loans, where the loan going bad means extra services required therefore allowing them to charge even more for the bad loans they sold them. But, someone is going to be left bearing the loss.

  31. fantasy0coach says:


    cont… in the case of the USA, it was the taxpayers and their pension funds etc that wore the loss. The banks would never risk their own money like that, but when it's everyone elses money, shit, hell for leather. We'll take it. They know damn well if they lose everyones money, the govt will give it back. They have to, cant have empty ATM's.
    Meanwhile the dividends and regular profit distribution keeps a nice slice for the execs and major shareholders.

  32. fantasy0coach says:


    the point you miss is that these obvious unpayable loans are being made using your deposit money. It is you who is lending these 'stupid' people money under those circumstances. Then when they cant pay it back, you have to give your money to the bank again by way of a bailout, so your ATM balance remains the same.

    For these reasons, protesting about the 'stupid' borrowers and not protesting blatant misuse of your money by the banks would be 'stupid'.

  33. The Eclectic Reader says:

    @Paulsasleepwalker I personally would rather see her as senator of Massachusetts… it's such a blue state that she could easily be in the Senate for decades and eventually become really powerful. And Ted Kennedy deserves to have someone like Warren in his seat, Scott Brown is besmirching it. Let's face it, Warren would just get sidelined as Treasury Secretary anyway… not that she would ever get confirmed, the GOP would definitely put a hold on or filibuster her nomination.

  34. Steven Baal says:

    Nobody forces anyone to take out loans. I don't agree with credit, and anyone who does is a sucker. Shallow graves around the globe are full of stupid people who couldn't pay up. Hahahahaha.

  35. angel102ify says:

    In Britain a customer borrowing £100 for 28 days without the consent of Santander would repay £200, That is the equivalent annualised percentage rate, or APR, of 819,100%

  36. sersarsor says:

    @dangerouslytalented tru dat, less interest, more humane people. And if u cant pay up, ur life is gonna be fucked anyway. The mafia probably kill u, but banks mess wit ur whole family

  37. dangerouslytalented says:

    @sersarsor Plus, since they are not securitising the loans, they have an incentive to make sure that the people can pay it off… eventually… Whereas here, there is absolutely NO risk to the lender.

  38. Richardisdorky says:

    @dangerouslytalented Hey at least the Mafia will only brake your legs. These guys will take every dime you have. Then take 80% of your paycheck until the money is paid back.

  39. Richardisdorky says:

    Stop using credit people. It's a racket and a rip off. Spend only what you earn. It' hard and it may suck for you few years but it's worth it in the long run. The short term benefits of credit are not worth the long term loss.

  40. C.K. Gould says:

    I think it's time to take things to the EXTREME!

  41. WarThug13 says:

    Im sick of america.

  42. KLanD Tine says:

    400%… seriously.. 400%!!!

    That's like instant bankruptcy.

  43. jrpone says:

    @Liqtor Im sick of all you Nordics(Sweden, Norway, Finland) bragging about your awesome highly educated society and gov.

  44. Jex134 says:


  45. trier4952 says:

    @Paulsasleepwalker I would like that, but Elizabeth Warren is running for Congress in Massachusetts

  46. PDT357 says:

    @Liqtor i might move to sweden…real government regulation sounds nice

  47. DaBamBamMan says:

    @Liqtor How DARE you regulate the banks!?!?!?!? Don't you know they are too important to put any restrictions on. Oh, and whatever happened to economic freedom. They figure out a way to make a profit, and you guys get jealous!

    Its fun to act like a retarded American :D.

  48. DaBamBamMan says:

    @Paulsasleepwalker Not gonna happen. They know she wont play ball. Or in their words, "She's not ready for prime time."

  49. annoythefish says:

    1. Get 500 dollar loan
    2. Use 500 to get 1500
    3.Use 1500 to get more
    4.Repeat until a billionair
    5. we 1% now

  50. Marcus Carlsson says:

    @Liqtor Moderaterna finansminister är en av dom bästa vi någonsin haft. han är otroligt.

  51. brokenbeekerman says:

    we'll regulate it, after they rape people for a couple months or years. That seems to be the new game, rape the public until were almost rioting and then fix it after a huge profit is made. "oh, sorry!'

  52. P says:

    Legalized loan sharking.

  53. sushanalone says:

    Oh you wingers, the market will fix all the problems itself, it always does. BTW where are the Ron Paul trolls now?

  54. bluesboy25000 says:

    @Paulsasleepwalker but what if Warren wins the election? We need her in the Senate

  55. scientificpeople02 says:

    There is this loan company in the UK that has an APR of 1734%!! Crazy :/

  56. Christopher Rector says:

    In Canada it's criminal to have an APR above 60%…I think its 60%, but the point is Canada rocks!

  57. GDI109 says:

    @sushanalone right here, vote ron paul mother fucker.!

  58. sushanalone says:

    @GDI109 you sound butt hurt by reality. here use this ointment where it hurts.

  59. Karnage2015 says:

    2:05, "TOTTALING"? I realize Photoshop and other image programs don't check for spelling, but really TYT?

  60. ShallowBeThyGames says:

    Some "payday loan companies" in the UK have interest rates of approximately 2500% apr.

  61. killerchipmunkattack says:

    Ok noone makes anybody takes loans wif such ridiculous interest rates, it's personal choice

  62. Erika York says:

    @killerchipmunkattack That's true, it's a choice, but it doesn't make these payday loan places any less predatory. People need to be made aware of how much a scam they are, so when push comes to shove, they know NOT to go there, and find some other way. Charging 200% interest is pure insanity.

  63. Has S says:

    @rohannesburg Relax dude honest mistake

  64. Thethoughtful1z says:

    And people wonder why regulations are needed….

  65. John Doe says:

    @brokenbeekerman Take off those rose-coloured glasses – no one is gonna fix anything.

  66. ecwaufisxtreme says:

    Sarah Palin will PUNISH the bankers for this scam and EXPOSE their CIRCUMCISED PUSSIES for the whole world to see! Any bank that screws over the people will be DESTROYED by the WRATH and FURY of GOD HERSELF!

  67. fantasy0coach says:


    Doesnt matter, you still had $5000 taken out of your hand like every other US citizen and handed to the banks that lost other people's money.

  68. hamrite says:

    @asdfgoogle I was complaining about the light, not the sound for once. Its getting better

  69. John Doe says:

    @Aethan001 "Bad credit has repercussions".

    Tell that to the US Gov't. Tell that to the State Governments. Tell that to the big banks that got their bad loans written off with taxpayer money and no consequences.

    But no, when it's the little guy getting screwed by the system stacked against him it's his fault?

  70. booley says:

    @Aethan001 don't banks have any responsibility not to screw over people?

    Why does responsibility only lay with the victim?

  71. David Fleck says:

    I get Social Security and I only get paid 1 time a month. I get a pay day loan every month and I am very thankful because on the 15 day of the month I get $200.00 and it only costs $36.00 and I think it is a good thing. Because of my pay day loan I can eat all month long.

  72. tjb62 says:

    …if all those idiots weren't so materialistic….and kept buying shit they don't need, they wouldn't friggin' need more money to spend…

  73. Illuminati33degree says:

    This is exactly why I love watching banks get robbed!

  74. SpitfireOFatj says:

    @Mr1967lefty The way I tell people to get out of the situation of borrowing $500 is to borrow $400, then $300, then $200, then $100 and in only five months they are free and clear of the loan. You can do it in $50 increments if you can't live temporarily on $100 less a month.

  75. David Fleck says:

    @SpitfireOFatj I am just fine with my payday loans like I said It only cost me $36.00 and I only get 1 loan a month I go to the same company every month. When people get in trouble its because they get 3 loans from 3 different company's. I have this addiction to eating every month. We have had months that we did not need it and we did not get it .The trick is not to abuse it. Believe me if I have money I dont get it but I have bad credit and sometimes I need food .

  76. SpitfireOFatj says:

    @Aethan001 You Right Wingers always have to show off your smug superiority. These payday lenders aren't just for what you think of as "losers". They run TV ads targeting EVERYBODY. One in particular airing locally shows someone stuck in a mechanic's shop with an unexpected repair bill.

  77. SpitfireOFatj says:

    When you get right down to it, this is the very definition of a "front company".

  78. SpitfireOFatj says:

    @Mr1967lefty "I have bad credit and sometimes I need food "

    I know someone who had to get one because their fridge broke down. He was continuing to borrow $500 a month for over three years. That fridge ended us costing him thousands.

    I don't know why but some people live their life thinking "their ship will come in". They really believe there's this magic time in everybody's life when they'll be showered in cash and they run up debt waiting for that day.

  79. restinghope says:

    They have payday places around here (Michigan) you can get 600 bucks, and that will cost you 72 dollars for the loan. Out to 30 days, but if you get stuck on it for 8 months, they make you stop and go into a 90 day payment plan to get it paid off and stop doing it.

  80. Mark Washington says:

    Payday Loans have their place. Many times, a person my need to get there car fixed immediately to go to work! If you have bad credit, no banks will give you a loan. Go get a cash loan in 60 minutes. Check out the best payday loan program online by going to my profile page.

  81. Dominique says:

    It's worse in Utah. There are known legislators who own these payday lending institutions, and write and push laws that protect THEM, not the people. Reprehensible.

  82. FrankLightheart says:

    Oh, who's surprised? Honestly?
    Was anyone shocked by this news, or did you go, "Well yeah, go figure!"

    It's just disgusting, is what it is.

  83. wojovox says:

    There will be a day when we look back on Capitalism and wonder, how did we ever believe that would work?

  84. blindedby2monkeys says:

    i think it's what HAS been done to capitalism and not capitalism itself…

  85. wojovox says:

    communism by theory never allowed for a lasting dictator, but what happened there? Regardless of how we view the happenings, what we call the system, or what caused it's decline. This will be remembered as Capitalism. It's based on this growth paradigm that's not sustainable in the long run and I think we're seeing the steps towards end-game.

  86. catbuffalo says:

    Not unless that bank is located in a country who's government doesn't criminalize debt and actually encourages it. Loans can't be enforced in said situation.

  87. Bridget Hendricks says:

    People shouldn't take out these loans if they can't pay them back. They just make their situation worse.

  88. Troy Collins says:

    sounds like obama

  89. BASKERTOWN says:

    loans cant be enforced in any situation where the country itself is bankrupt, its common sense if the money is inherently worthless you can't pay with something else that is worthless "well you could" but that would make you stupid. You cant pay 0 with 0 can you?

  90. heatwave59 says:


  91. Kris Allen says:

    PAYDAY LOANS are a SCAM ~ We will get YOU OUT of that FRUSTRATING Payday Loan Cycle ~ Call 407-203-7051

  92. JOHN MENUIS says:

    1000% APR is highway robbery no matter how short the term. Of course the quicker you pay it back the less interest you will pay but it doesn't excuse what should be a crime.

  93. James Donovan says:

    Great video with a lot of useful information about payday loans I have had some experience with these loan products as well. Great when you need them but make sure you shop around and follow the terms to the letter. For more personal finance info please subscribe to my channel Thanks-J

  94. Bikash Acharya says:

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  95. Jesus H says:

    Can we please stop bullshitting ourselves for Christ sakes…The banks didn't need bailed out they manufactured the all American racket and the people for the most part don't have a clue. they took free money turned around and gave it back at 8%.

    I know it far more complex than that however, in layman terms that is what happen. Our Government stole the money and we are so fucking into ourselves we won't get it. I guarantee I get 10 broke dicks telling me what an idiot I am.

  96. Jesus H says:

    They will give China Iowa, Kansas, Nebraska and fucking Calif.. If we don't camp in one of those states we won't give a fuck.
    When you are sick of summer camp FEMA, and they won't let you leave, too fucking bad, when your fucking starving to death too fucking bad China owns the bread basket now. When some fat Chinese man is fucking your wife too fucking bad that's what we did to his grandpas wife when they built the railroad. TOO FUCKING BAD! so you know I already know I am a tard

  97. hexatentacle says:

    Ana looks way better without the heavy makeup.

  98. Dawn Bringer says:

    what makes me even more angry is the big banks attempts to cover up what they are doing here.

  99. canturgan says:

    We have these payday loan companies in the UK, Wonga is the most famous one, their APR is over 2,000%

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