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Western Sky

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  • #1

    Western Sky

    Has anyone else seen the commercials on TV where the Native American Indians talk about if you need 5 or 10K....yadda yadda...
    They say up front in the ad that the money isn't cheap...
    I actually paused the DVR on one of their commercials for 10K...
    In the fine print at the bottom it said something very close to this...I wrote the numbers down..but don't have them with me at the moment...

    10K loan, typical APR 86.89% (or real close to it)...average monthly payment of 763.00 for 84 months......

    Doing the math....to get that loan and pay it off in full....HOLY COW.....you would pay back over 60K......

    At least you have to admit their honesty when they say the money isn't cheap.....

    WOW!!!
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  • #2
    Yes. I have seen these ads. I respect them for their honesty, but it should still be illegal.
    Brian

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    • #3
      I agree that it is very predatory and would be illegal in a lot of places.
      But ya just gotta love their honesty

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      • #4
        Originally posted by woodie96 View Post

        At least you have to admit their honesty when they say the money isn't cheap.....

        WOW!!!
        Do you really think they're being "honest"? Sounds to me like the disclosure is more of a legal aspect and they're just trying to make it look like they're being up front with you out of the goodness of their heart.
        The easiest thing of all is to deceive one's self; for what a man wishes, he generally believes to be true.
        - Demosthenes

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        • #5
          I had a client who had one of those long-term pay day loans. I can't remember what her APR was but she had borrowed $2,000 and her payment was around $250 for 36 months. Which equaled over $9,000 by the time the loan would be paid.

          I pointed that out to her and suggested she cut back her discretionary expenses and apply an extra $200 to the loan to pay it off since her credit didn't allow for her to refinance to better terms. You would've thought I'd asked her for her first born. Even after disclosing to her the total amount she'd be paying back she decided it was worth it since she would still be able to shop and have her hair and nails done on a regular basis.

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          • #6
            Rates

            Wow!! Unreal!

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            • #7
              This stuff is far too common. Have you ever looked at the terms on the tax refund loans that H&R or Liberty or other tax prep places advertise every year? They come with an interest rate of 200% or more, just to get the tax refund a few days early. It only takes about 14 days to get it the regular way. Why pay such an outrageous fee to get it sooner? Makes no sense at all.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

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              • #8
                Originally posted by disneysteve View Post
                This stuff is far too common. Have you ever looked at the terms on the tax refund loans that H&R or Liberty or other tax prep places advertise every year? They come with an interest rate of 200% or more, just to get the tax refund a few days early. It only takes about 14 days to get it the regular way. Why pay such an outrageous fee to get it sooner? Makes no sense at all.
                For the same reason that people go to payday loan places to get their paycheck a few days early. It makes no sense to you or me, but I guess when people get desperate they act irrationally.
                Brian

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                • #9
                  I'm not so sure it is a desperation thing. I think it is more of a gotta have it "NOW" thing. I'm sure glad I wised up a bit a few years back and started making better decisions.
                  My step son, against my (and his mom's) recommendation went to one of the tax places to do his 1040EZ form. He should have gotten back about 3K, but lost a couple of hundred when he wanted the return fast, instead of waiting a few days.

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