Economics: PayDay Loans- Bastards or Black Sheep?

[Fife]

Hardly, he could charge much more he is competing with those rent a centers which are glorified pawn shops.

1. What is wrong with pawn shops?

2. What does a rent-to-own shop have to do with pawn shops?

I've represented both types of businesses many times. Pawn brokers who make a go of the business are more trusted than local bankers by about a 3x factor, and more trusted than big-shit bankers by about a 10x factor.

Rent-to-own guys know they are in mortal combat with their customers. It's a much tighter margin, but both sides make out in the long run, if just barely.

Even more interesting are the rent-to-own car lot dudes. When I was a pup, it was "here's your set of keys, here's my set of keys; if I don't see your payment by 5 each Friday, Bubba is getting my set of keys and will be coming over to visit." Nowadays, they just stick a GPS kill-switch on your ride. Must suck to stroll out of the Mexican restaurant with your girl on Friday evening after getting your chimichanga and margarita on, only to find out the ignition on your sweet-ass Malibu has been shut off.

*Second edit: by "rent-to-own car lot" I mean the "we tote the note; your paycheck stub is your credit check" shops. I've had some fantastic times representing some of those guys, and also some of the people they have run afoul of. I was offered a Z28 as a fee once from a dude who was strapped for cash; my then-wife put on the kibosh. About a month later I got a Notice of Automatic Stay under Chapter 7 regarding the entire fee. /sigh

**Third edit: Had to change to "mortal combat" from "moral combat." I had to think twice about whether the edit was needed.

[clubgop]

Hardly, he could charge much more he is competing with those rent a centers which are glorified pawn shops.

1. What is wrong with pawn shops?

2. What does a rent-to-own shop have to do with pawn shops?

1. Nothing per se.

2. It is a way for people with no or poor credit to get household items.

[Speaker to Animals]

The number of inventions, discoveries, business ventures that were created through direct loan, or otherwise they supported themselves through such over the centuries is incredibly vast.

The number of customers I have everyday that only have working refrigeration because I float the money is large a well.
(3 months interest free, 1.5% after that) The idea that I am taking advantage of them is truly go fuck-yourself laughable.

That’s not my stance, but it is a small profit center for your business, is it not?

Imagine if our entire society was built differently though. No interest on loans ever, things working as they did 100 years ago.

The quick answer, of course, is that we wouldn’t have progressed at all, but that’s not consistent with human nature. We’d certainly be on a much more sustainable path.

Hardly, he could charge much more he is competing with those rent a centers which are glorified pawn shops.

Yeah, I wouldn't call that interest in practice. It comes out less than a standard fee in non-interest societies for most things. 1% in practice is just charging for the time to maintain the books, which should be compensated.

[Okeefenokee]

Surprised Daralon hasn't asked anyone for money yet.

[Speaker to Animals]

Surprised Daralon hasn't asked anyone for money yet.

He's trying to turn his life around and hasn't wasted more than two hundred dollars on hookers and blow for like three weeks now.

[Fife]

I heard he tried to hock his porn collection.

Failed the black light test.

[Okeefenokee]

I was gonna offer to borrow some money from someone so we get to the bottom of this issue.

[Martin Hash]

Without interest allowed on any loans.. there wouldn't be any loans.

What? Haven't you ever heard of Islamic Banks? Fastest growing banking sector, no interest.

[Speaker to Animals]

Also the microfinance industry in the Catholic world.

[Martin Hash]

Preying on people who have lack of opportunity is a time-honored Libertarian tradition.