Dave Ramsey

Bad place for an old lady to be

Thursday, Jul 17 in Payday loan | Comments (7)

Question: Rochelle's mom is having a difficult time going to the payday loan store to repay her debts. Why can't she mail it in?

Dave Ramsey's advice: Because they're butts! They are payday scum lenders. Figure out how much she owes and pay it, then threatened her to within an inch of her life if she ever goes near them again. I can't think of anything sadder than an old lady involved with payday loan stores. They are scum-sucking bottom feeders. She's being taken advantage of and mistreated. If they want their money, they'll take it if it's mailed. If they won't, bite my ankle!

Dave talks about how the sky is not falling, and banks are not closing, and the stock market is not crashing, and the economy is not failing. Don't leave all your money in one bank.

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Comments
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The PayDay Scam crooks probably prefer that the ol' lady arrive 'in person' so they can push her into taking out a new loan each time she pays the old one.
# Posted by psxmas06 | 7/18/08 7:11 AM
Mom didn't have a problem getting to the store to make the loan, did she? :) Read the contract; does it say she cain't mail it in?
# Posted by thelma | 7/21/08 7:40 AM
The payday lenders are SCUM! It is all part of the scam. One month they take over the phone payments, then the next month they change their MO so you can't get ahead of your debt and pay in advance. They want to charge you late fees. So the next month when you call to make a phone in payment they say they will no longer take an over the phone payment -- you must use their website. When you ask for the loan payoff amount -- they ask why you want to payoff the loan -- don't you need more money? So you go to the website and low and behold you can't make the payment with the instructions they provided you. If your lucky, you didn't wait till the due date so you don't get stuck with anothe late payment trying to get a human being on the other end of the customer help lime. DEBT truly makes one a slave to the lender!
# Posted by Deb | 7/22/08 9:13 PM
I recently got involved with a "Payday lender" over the internet. BOY, WHAT A 'STUPID TAX' I am paying. I have repaid the loan in full, but found that through their company my bank information was given to various other internet companies, such as "idnet" or something link that, and they are taking fees in the amounts of $9.51 to39.95 out of my account. I have to call each one individually and demand that they refund my money. This apparently takes several weeks to do and in the meantime, my account is being sucked dry! I am going to have to close this account and open a new one, just to stop them. Please warn your listeners! I only get to hear you on a delayed broadcast in our area, (north central Florida), on my way home from work. I don't get off work until 7:30 PM or later, so it is a good thing you are on my radio at this time. I thank God for you and the things I have learned from you this past year. We have your book, "Total Money Makeover". I have read it and my husband is reading it now. We plan to begin the prgram in earnest very soon, but I can tell some of the things my husband has read has changed his mindset. I am the bill payer in the household. He is on a fixed income and I work a pretty solid schedule at a local hospital. They are trying very hard to cut down on overtime, so it is difficult for me to work extra. I also do not have a set schedule and have little flexibililty in finding a part time job. I am almost 59 years old and only wish I had listened to my parents over the years, when it came to money. You are the next best thing!

Sincerely,
Sandy Ryan
# Posted by Sandy | 8/7/08 12:53 PM
HI, I want everyone to know that if you get a loan from
Amscot in Florida, if it is paid back within 24 hours,
you are not suppose to be charged any interest on the
money you borrowed. Please start reading the flyers that
they give you when you purchase money orders. Amscot
doesn't come out and tell you about this but I WILL!
# Posted by T. Harris | 9/5/08 2:10 PM
If you are going to have the money to repay them in a day, work it out with the debtor that you owe the money to-cause ifyouare one nanosecond late you will be charged intrest.
# Posted by Eric J | 11/10/08 12:03 AM
A Pay Day Loan, a closed-end loan, uses the Nominal (simple-interest) mathematicalyy-untrue method of expressing the Annual Percentage Rate (APR), the rate for a payment period multiplied by the number of periods (including decimals) in a year. This was adopted in the Truth in Lending Act (part of the Consumer Protection Act) in 1968 when there were no ubiquitous machines that cold calculate compounding, other that big-box calculators in a seperate air-conditioned room. Now, a hand-held calculator with compounding may be purchased for $4.95. The mathematically-true Effective APR is calculated as the rate for a peiod compounded for the number of periods in a year. On a typical Pay Day Loan, where $100 is borrowed by giving a 14-day post-dated check for $115 the Nominal APR is 391% (15/100)*(365/14). The mathematically-true Effective APR is 3724% (((15/100)+1)^(365/14))-1. The President's Advisory Council on Financial Literacy could recomment a change, but the council is headed by and consists of member who are financial institution oblegees. On a close-end loan the TILA allows a tolerance of error of 1/8th percent (0.125%) The Effective APR 3724% is, not 1, but 26,664, 1/8% from the Nominal APR (26,664-391)/0.125. Dave, one a priest, I reminded of Jesus saying, "The truth will set you free." but I get no positive reaction. The TILA should be changed to express the mathematically-true Effective APR.
# Posted by A F | 12/20/08 8:08 AM
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