Quote:
Originally Posted by Bertuzzied
How though? do they do loan sharking on the side? I have yet to know one single person to ever goto a money mart.
well actually me 3 years ago because my stupid comic art dealer in the states only accepted western union money orders. but besides that. to use that early paycheck service.
|
If you work out the actual rate, they are charging close to the 60% in CCC. It's not just the annual rate, which may be around 20 or 25%. The real money is made on the service/administrative charges. For example, you want a $400 pay-day loan. You will be charged 20% interest, which is minor, given that it's something like a 10 day turn-around. But the $25-50 admin charge is huge return on investment when you prorate it to an annual interest rate.
There are also people who need to cash a cheque NOW and are willing to give Money Mart $25 (or whatever) because they can't wait out the hold period at a bank. It's a gold mine.