I really don’t like check-cashing places, payday loans, or all those other “get money quick” businesses that seem to have cropped up everywhere. Basically, they say to me that “this neighborhood is poor, and we’re working to make it even poorer”. I heard about a loan place recently that was offering loans to poor people. It’s called CashCall, and they’ve got a few commercials on TV. Here’s what their website says for their rates in Colorado:
Ouch. 99% and 141% interest rates? According to wikipedia, the payday loan places typically charge $25 on every $100 borrowed on a two-week loan. Some people have also noticed that liquor stores are often in close proximity to these places. No doubt, it’s beneficial for both. Unfortunately, there seems to be no shortage of businesses aimed at taking money from desperate, mathematically-challenged poor people.