Things To Know Payday Loans Before You Buy To Make Sure you Don’t Become Pray!

If you’re on the edge about getting a payday loan make sure to watch this and actually figure out what’s going on inside these establishments so that you don’t get ripped off and welcome back to money recall so after posting the video about the big three to stay away from so payday loans rent towns and new car dealerships and then I went over to Netflix and started watching a series called dirty money and so season 1 episode 2 is actually all about payday loans so the entire episode is about Scott Tucker and he was a racecar driver not originally but after he made his millions I think he quoted it as a two billion dollar annual industry and so the episode is called payday if you are thinking about getting a payday loan do go and watch this before it’s about a 40 minute episode and it will really be eye-opening to what goes on inside this industry so Scott Tucker was using some pretty industry standard formulas so what they would do is they would have a contract that was very difficult to understand exactly what was going on there’s about four sentences that you needed to understand and they were chopped up interrupted by other sentences interrupted inside the sentences put in really weird locations and there was the box an actual box that said how much you’re getting how much the fee was total and then a box around that they had some fine print and then some fine print underneath it would put one sentence here one sentence here one sentence here one sentence here so they’re all in sorts of different places it shouldn’t take a lawyer to understand how a product works this is very predatory and so what would go on is they would take out this $300 there would be a $90 service charge and they mount total do was 390 so in one of the sentences you would say the amount is due by one week period at the end of that period it needed to be either paid off or you had to pay on it otherwise the loan would be renewed and they charge you another $90 service fee plus interest on it so you would end up paying over a four week period of time you’d paid $90 $90 $90 $90 and most people wouldn’t think anything of it because that’s how they actually owed to them and there would be one more payment a small payment and the 390 would be paid off over a four-week period of time or so most people thought what they’re really paying as I just explained was a service fee for rolling over the loan so these people would pay the entire balance and still owe money so not the entire balance but the actual principle they would pay the entire principal and service fees and then call in wondering what was going on as they tried to withdraw 390 dollars or whatever fee again what goes on is the company deceives the individuals into believing that a product works in a certain manner yes it’s in the fine print but it is not vivid or obvious what is going on until it’s actually occurred and they already owe 200 percent interest or up to five hundred percent interest so a one hundred dollar loan if it was to go to its complete fulfillment it would be charged on nine hundred and eighty dollars I believe is were they courted so this is industry standard and this goes on and a lot of places and what really made this business boom was it was done online and so only thirty six states allow payday loans but what he did and where he messed up is he went to an Indian tribe and registered it with an Indian tribe so they could go and do business with every state no matter what because the states can’t take an Indian tribe to court but the federal government can the biggest error was it didn’t do any of their business inside the tribal land it was just registered underneath them most of their stuff took place in other cities outside of it so they would actually every day they would print off what the weather was like inside that Indian tribe so they could have up-to-date answers and be able to do small talk with people about what was going on in that area employees were also told to lie about where the location was at at the end of this all he was hit with a 1.3 billion dollar in reparations he’s currently serving a 17-year sentence when all this litigation was going on his friend that he started the business with I started really really small and it blew up with the internet his friend that had been with him since the beginning actually ended up shooting himself in a parking lot at some strip mall and the pressure that was brought them created this death and so they during this video they start talking about how unfortunate was that the government puts so much pressure on them that somebody ended up taking their life but then if you take the flip these people were preying upon people who were living paycheck to paycheck probably going into more debt and more hard times just because they took out these loans and how many people probably committed suicide over that there’s stories of college students shooting themselves in the head over credit card debts with their credit card bills in front of them that yeah that happened but finances are one of the leading causes of divorce and struggle for the American population and these guys absolutely preyed upon them and these are industry standard tactics that are used the real reason that payday loans started to exist now they actually replaced the Mafia so large establishments stopped giving out small consumer loans because it’s a lot easier to make big loans and make big money off of them than it is to make a bunch of small loans and make small money off a lot of them so these payday loans the Mafia actually was doing this very very similar thing to what these payday loans are and then the payday loans actually started taking over than the Mafia couldn’t do it anymore so that’s where the origin of payday loans comes from is they filled the void of the big corporations not wanting to help the little guy anymore which is pretty standard so if you found this video useful you know anyone that actually thinks they’re gonna be taking out a payday loan or you would like to subscribe do so and make sure to pass this video on so it’s somebody who is in need can get informed and make sure to go and check out the Dirty Money series and especially season 1 episode 2 payday where they actually stuff talk about Scott Tucker and it’s really eye-opening if you’re thinking about getting a payday loan make sure you check it out don’t forget to Like and subscribe now as always have a great day

One comment on “Things To Know Payday Loans Before You Buy To Make Sure you Don’t Become Pray!”

  1. Robert Lee James Welch says:

    These products target desperate, poor and short term thinkers.

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