High interest loan

[NoMoreE46]

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. 

[CYBERSAM]

Is that even legal!!! 🤦‍♂

[pizzadude]

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

[NoMoreE46]

---

@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. 

[Gladius]

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

[JoeRockhead]

---

@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. 

[Horseshoez]

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

[Kforce]

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

[Kforce]

---

@Horseshoez wrote:

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

---

Sad truth, these are real 

[dunn2500]

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