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Friendly sales pitch canвЂ™t hide payday loansвЂ™ unfriendly prices
by David Lazarus, Los Angeles Days
The letter that recently reached homes throughout Ca as well as other states features an image of Sylvester Stallone in вЂњRocky IIвЂќ training for another shot at success.
вЂњAs youвЂ™re making your monetary comeback,вЂќ it says, вЂњwe would like you to learn increase will be here to simply help.вЂќ
Especially, the organization is providing a pre-approved loan of $2,600, вЂњwhich may be deposited to your account the moment the next day.вЂќ
вЂњEveryone really wants to get ahead financially,вЂќ the letter claims. вЂњThatвЂ™s just what weвЂ™re exactly about. Increase is approximately getting you the cash you will need to help you make progress the next day.вЂќ
But cue that is donвЂ™t gonna-fly-now music too rapidly.
The small print of this page reveals that the apr on that $2,600 loan is 174.54%, and therefore youвЂ™ll be expected to produce 36 biweekly payments of $193.16 each.
Simply put, that $2,600 will set you back nearly $7,000 in interest and principal.
Thank you for visiting the new-and-not-so-improved realm of payday financing, which includes used more advanced additional reading sales pitches and branding to attract unwary consumers into loans that can trap them in endless rounds of debt.
Loan providers want to shed the stigma of typical pay day loans, which frequently are offered to get in low-income neighborhoods and target individuals who may lack the economic savvy to comprehend the hefty interest and charges included. Continue reading →