A debt-collection machine that’s chewing up small businesses across America

Re:A debt-collection machine that’s chewing up small busines... by cm2012 on Tuesday November 20, 2018 @03:18PM (#18497318)

FYI, for a 3 month daily debit loan like this, 350% APR means paying $60,000 for a $35,000 loan. This is obviously very high, but it's not the 3.5 * the principle like many people would assume.

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Re:A debt-collection machine that’s chewing up small busines... by ggggtez on Tuesday November 20, 2018 @04:08PM (#18497742)

How so? You are nearly doubling your money every 3 months. What investments can do that? Crypto? Not guaranteed. Pretty much only usury and actual crime.

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Re:A debt-collection machine that’s chewing up small busines... by saalweachter on Tuesday November 20, 2018 @06:19PM (#18498782)

Whenever I'm evangelizing the PPACA, I always hit on the regulations around the MLR - the "medical loss ratio", ie, what percentage of premiums are paid back out as medical claims.

One insurance company had a plan with a ten-percent MLR! (Marketing plans that didn't cover anything to college kids, of course.) They took in premiums and kept ninety-percent of it as profit.

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Re:A debt-collection machine that’s chewing up small busines... by cm2012 on Tuesday November 20, 2018 @04:16PM (#18497819)

My comment was just on how APR is calculated for short term loans.

Also, you only double your money every 3 months if none of your loans default and you collect everything. Most of these loans default. Profits are way slimmer than you're imagining, even for the scammers (Who I definitely agree should be punished for these practices).

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Re:A debt-collection machine that’s chewing up small busines... by rustcharm on Tuesday November 20, 2018 @05:41PM (#18498523)

principal

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