topic Re: High interest loan in Auto Loans

High interest loan

NoMoreE46 — Tue, 09 Jan 2024 18:17:48 GMT

This is from a Reddit post.
The author is trying to get the borrower out of this incredible loan.

She borrowed $400 for a car at 756% Interest. Yes, seven hundred fifty six percent.

$60 payments are due weekly. Borrower has paid ~ $3100 so far with ~ $2760 remaining.

Re: High interest loan

CYBERSAM — Tue, 09 Jan 2024 18:28:53 GMT

Is that even legal!!! 🤦‍♂

Re: High interest loan

pizzadude — Tue, 09 Jan 2024 18:33:34 GMT

This is like a payday loan or similar I'm guessing ? I know in some states there are limitations on the APR but this must not be in one of them

Re: High interest loan

NoMoreE46 — Tue, 09 Jan 2024 18:42:43 GMT

@pizzadude wrote:
This is like a payday loan or similar I'm guessing ? I know in some states there are limitations on the APR but this must not be in one of them

There was chatter in that sub about being a payday loan from a Tribal Nation where ursury and state lending laws are not enforceable.

Re: High interest loan

Gladius — Wed, 10 Jan 2024 11:20:23 GMT

Is that rate a mistake?! I can't even fathom that number!

Re: High interest loan

JoeRockhead — Wed, 10 Jan 2024 12:45:26 GMT

@NoMoreE46 wrote:
@pizzadude wrote:
This is like a payday loan or similar I'm guessing ? I know in some states there are limitations on the APR but this must not be in one of them

There was chatter in that sub about being a payday loan from a Tribal Nation where ursury and state lending laws are not enforceable.

I guess my question to that would be if the laws aren't enforceable, why bother with the "truth in lending disclosure"?

This whole set up sounds similar to buy here, pay here lots. Many of those are in house financed meaning if you default, all you lose is your vehicle, they repo it, then resell to the next victim. They're specifically geared towards people who can't qualify for a loan otherwise.

Re: High interest loan

Horseshoez — Wed, 10 Jan 2024 12:53:41 GMT

Or did someone fab up that statement to use as clickbait?

Re: High interest loan

Kforce — Wed, 10 Jan 2024 18:31:41 GMT

Rates are insane, but the real crime is letting one make

payments that are almost the same as the interest.

Loan: 400.00
Rate: 756.23 %
Pmt : 252.57

Payment Principal Interest Balance
---------------------------------------------------------------------
252.57 0.49 252.08 399.51
252.57 0.80 251.77 398.71
252.57 1.31 251.26 397.40
252.57 2.13 250.44 395.27
252.57 3.47 249.10 391.80
252.57 5.66 246.91 386.14
252.57 9.23 243.34 376.91
252.57 15.04 237.53 361.87
252.57 24.52 228.05 337.35
252.57 39.97 212.60 297.38
252.57 65.16 187.41 232.22
378.56 232.22 146.34 0.00
---------------------------------------------------------------------

3156.83 2756.83

By paying $5 more each payment ($20/month)

Only 5-6 months to pay off and 1/3 the interest

Loan: 400.000
Rate: 756.23 %
Pmt : 272.09

Payment Principal Interest Balance
---------------------------------------------------------------------
272.09 20.01 252.08 379.99
272.09 32.62 239.47 347.37
272.09 53.18 218.91 294.19
272.09 86.69 185.40 207.50
338.26 207.50 130.76 0.00
---------------------------------------------------------------------

1426.62 1026.62

Re: High interest loan

Kforce — Wed, 10 Jan 2024 18:45:48 GMT

@Horseshoez wrote:
Or did someone fab up that statement to use as clickbait?

Sad truth, these are real

Re: High interest loan

dunn2500 — Sun, 14 Jan 2024 08:02:07 GMT

just borrow the money and pay it off in one day.........thats unbelievable