OT: WesternSky.com

[RocketDawg]

A frequent ad that I see on television these days, at least on the channels I frequent (History, Discovery, etc.) is for WesternSky.com, a money store that features a fairly attractive American Indian woman telling us what a great deal you get from them. It's a Native American-owned company, operating on a reservation, according to the fine print. She says it's much better than payday advance loans, and the "Problem Solver Loan" is touted as a way to pay off payday advances.

If you read the even finer print, you can get a $10,000 loan with no collateral at the outstanding interest rate of 80%! The period of the loan is 84 payments (7 years) of $743 monthly ... so if you take it to term (and probably couldn't pay off early if you wanted to) the $10K is a whopping total of $62+K ... costing a person well over $50k in interest.

These type things, as well as the prolific payday and title loan places, should be illegal. They do nothing but prey on the vulnerable and poor who may have no mathematical skills. Why do we allow these things to operate?

 

[coach66]

Why?, because the average guy struggles to get a loan from a bank in today's

world. Hell, I have an 800 credit rating and I was worried they weren't going to refinance my
house. It is a different world out there. I have a friend making a very good living these days basically providing capital in the form of loans to legitimate businesses because the banks are not interested.
We use to call them loan sharks, now they are called Private Lending.

 

[BogeyGolfer.sixpack]

I agree that it is sad but many people depend on these types of places....

for cash flow and to get loans because banks today have tightened up after the recent failures. I recently bought a second home/rental property and I talked to at least five-six banks to find one that didn't want 20% down. I have great credit as well....So, my point is that they serve a purpose but at the same time it seems like these private lending institutions do take advantage of many people.

 

[RocketDawg]

The only purpose they serve is to take peoples' money. Would you finance at house ... or anything else for that matter ... at 80% interest? I doubt it. If someone did it would be the stupidest thing they ever did. You'd never get it paid for.

Neither your or 66's arguments hold water in my opinion.

 

[coach66]

Rocket, just to be clear. I'm not an advocate of private lending. I was only

pointing out why it exists and why it is currently flourishing. I think it is shameful to
take advantage of people the way some of them do but it is there for a reason, people
want/need the money and are willing to do or sign almost anything to get it.

 

[HammerOfTheDogs]

A frequent ad that I see on television these days, at least on the channels I frequent (History, Discovery, etc.) is for WesternSky.com, a money store that features a fairly attractive American Indian woman telling us what a great deal you get from them. It's a Native American-owned company, operating on a reservation, according to the fine print. She says it's much better than payday advance loans, and the "Problem Solver Loan" is touted as a way to pay off payday advances.

If you read the even finer print, you can get a $10,000 loan with no collateral at the outstanding interest rate of 80%! The period of the loan is 84 payments (7 years) of $743 monthly ... so if you take it to term (and probably couldn't pay off early if you wanted to) the $10K is a whopping total of $62+K ... costing a person well over $50k in interest.

These type things, as well as the prolific payday and title loan places, should be illegal. They do nothing but prey on the vulnerable and poor who may have no mathematical skills. Why do we allow these things to operate?

Braves use squaw to rope Paleface into high-Wampum loan. Payback for Wounded Knee.

 

[Dawgpile]

Because they're subject to state pawnshop laws, title loan companies can charge as much as 300% APR. 80% is a pretty good cut in rate. Yes, that's still exorbitant to borrowers like you and me but it's better than a title loan.

I work in the sub-prime finance industry and while you might find these types of lenders distasteful, they do serve as an important resource to their clientele and the economy as a whole.

 

[BogeyGolfer.sixpack]

It depends on the situation...If I were making $8 an hour and ......

and I had a wife or child get sick and couldn't afford medical bills and banks wouldn't loan me the money, yes, I would consider borrowing money at a high rate. This is what many people face each day and these places are their only option (s).

 

[Kim Jong Um]

I thought Indian culture had to do with ethnic pride, respect for nature and return of rightful lands. But now I know that being an Indian is about scalping, drinking and gambling.----- Jerri Blank

 

[57stratdawg]

Because they're subject to state pawnshop laws, title loan companies can charge as much as 300% APR. 80% is a pretty good cut in rate. Yes, that's still exorbitant to borrowers like you and me but it's better than a title loan.

I work in the sub-prime finance industry and while you might find these types of lenders distasteful, they do serve as an important resource to their clientele and the economy as a whole.

Right. Plus, I'm pretty sure the Fed makes everyone report interest rates on an annual timeframe. So, if a payday loan gives you 30 days to repay, it ends up being some ungodly APR.

 

[rabiddawg]

I have seen said commercial numerous times. I figure they have a high rate of failed repayment and since it is a minority business + an American Indian owned business on a reservation that the Federal gub-o-ment just reimburses them for their failed loans.



As for the squaw.......IWHI

 

[MSUDawg4Life]

and I had a wife or child get sick and couldn't afford medical bills and banks wouldn't loan me the money, yes, I would consider borrowing money at a high rate. This is what many people face each day and these places are their only option (s).

Why not just pay the hospital what you would pay this company? You might even be able to negotiate down the hospital bill. Having a sick child and owning hospital bills is no reason to get an exorbitant loan. Decisions like that are why these banks and other lenders are filthy rich.