Predatory lendors

Reading our area newspaper today, they had an interesting article about a company that mails out checks to poor folks looking to get them to bite on their offers. Story was about Warburg Pincus a new york equity firm. Mailing folks a check for in this instance $1200. with the small print stating 33% interest. The gentleman knew that rate was really high, after letting the check set for a couple of months. His pickup breakdowns, so of course he cashes the check and repair his pickup. Misses a couple of payments and POW he gets hit with a lawsuit claiming in the short 10 months he now owes $3300. plus expenses! 

   Well turns out the President of this firm is good ole Timothy Geithner, Obama's Treasury Secretary! Damn, that is sweet! From secretary of treasury to "mob lender"!

    Hoping that maybe Trump can put a stop to this bullshit practice! Geithner, what a fuckin' crook! From the penthouse to the shit house in his service to America!

You didn't post your article so we cant read it...so I wont judge your specific incident.

But 33% interest isnt all that jaw droping in of itself - especially amongst sub-prime lenders.    Your average PayDay Loan establishment will charge up to 400% APR (or more than 13 times that of your newspaper article).     Thats probably legitimate predatory lending - although it begs the question as to what is the correct APR is to charge someone whose credit history is littered with defaults and/or bankruptcy.  I dont know the answer.

FYI - I have a credit rating over 800 and my Kohls charge card has an APR of 24%.   The trick is to not carry a balance.     Most any "airline mile" or "reward" credit card will come with APR's over 20% regardless of your credit rating.    I'm not prepared to call them predatory lenders....but then again I've never paid interest on them

Today’s Omaha World Herald business section. They sued him for $3300 dollars in court in less than a year. That is more like a 275% loan this should just not be happening. I always thought Geithner was a slimy bastard so I am not surprised by his involvement. You would have hoped he would have better morals and ethics than this type of business, guess not!

RDWoodpecker might be interested to know the Consumer Financial Protection Bureau was specifically created to crack down on things like predatory lending,  hidden financial fees, and other unethical practices championed by banks.

Republicans have systematically oppossed its existance from day 1.   It is currently led by someone (Mick Mulvaney) that shares this disposition and is actively driving legislation and executive actions to limit its power.   In addition, Trump's newly appointed Supreme Court Jusitice has a long record of supporting business over consumers in lawsuits throughout his tenure as a judge.

In summary, if rdwoodpecker is truly concerned about predatory lending he should make his voice heard to the currrent administration that is doing everything in its power to undermine the cops that protect people in such instances.  

As usual, PJ deflects and seems to have no problem with the crooks - just a problem with those who have the job of policing the crooks. Typical liberal rationale...

Im all for the cops cracking down on financial crooks including the ones in rdwoodpecker's post (if they in fact are).

But what do you say to people who bitch about fraud while simultaneously support slashing the power to enforce against it?     I suspect such people really haven't bothered to educate themsevles on the issue and instead just cheer for the team they've affiliatted themselves with

No, PJ's kinda got it here, it's all predetory lemding in one one way or the the other Payday loans are the epitiome of predatory lending but that lobby is just powerful enough to keep it alive. Party affiliation makes no difference in the matter. There seems to be a payday or title loanplace  around every corner down the road now. Kinda pathetic, they're flourishing.