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Politics : Liberalism: Do You Agree We've Had Enough of It?
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To: Jorj X Mckie who wrote (119659)12/13/2011 12:07:35 PM
From: Sidney Reilly1 Recommendation  Read Replies (3) of 224749
 
A predatory lending practice would be the current use of "bounce protection" on checking accounts which really amounts to a short term loan at murderous interest rates. At $30 per "loan" with a $500 cap the banks are raping the poor people who can't add or for other reasons bounce checks. The $500 is really a short term loan that has to be paid back in 30 days. If someone took the whole $500 at $30 for the loan thats 72% interest on a yearly basis. But usually the loan is smaller because people don't plan ahead to bounce checks. So a $30 check (loan) that bounced would actually cost the consumer 1200% on a yearly basis because the bank made you a short term loan (30 days) and paid the $30 dollar check.
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