What is considered Loan Sharking? - sharking
I had the impression that there was a specific loan and a 200 percent or double the amount of the loan as usury ..
Why is this 30 years mortgage costs, at 2.5 times the original amount typical? Is not wear too?
Tuesday, December 15, 2009
Sharking What Is Considered Loan Sharking?
3 comments:
The loans that the fees are illegal on the usury laws of any state.
Typically, the wear is located at around 10% APR (annual rate), exempts certain types of loans from the classical laws of usury and different maximum.
Normally, most states, auto loans and used free of charge by about 17% -19% APR.
In addition, the Member States in May, personal loans have a maximum height of 100% APR and payday loans up to 800% April
However, all loans to individual (not a certified lender) to another private party in general, at the standard rate of wear, no matter what type of loan is limited to.
Therefore, the following measures could be of interest, can be associated with different types of loan interest is calculated only for one year.
Start: 6% in April - $ 60 to borrow $ 1,000 per year.
Car: 19% April - $ 190 to $ 1,000 per loan year.
Personnel: - 100% APR - $ 1,000 to $ 1,000 per loan year.
Date of payment: - 800% APR - $ 8,000 to $ 1,000 per loan year.
Obviously, if timely payments are nOT from the time it could be built, the principle and computes the amount of interest in the following years, could be much higher. For example, if a payday loan interest only of $ 1000 was put at 800% APR and the person no payments during the year would total debt of $ 1,000 to $ 9,000 raised at the end of the first year.
Payday loans are legalized usury, but do not have the right to their feet than normal loan sharks break a rule, unless you do the repayment of the credit.
Depending on your time and opinion. In any case, this opinion on the annual percentage rate (APR), the sum of interest for many years. 200% of a total of more than 30 years is nothing compared to the APR of payday loans. But if the trash your credit card and have no friends or family, you have to do what they do. And most states have no usury limits. Thus, in the context of the search legalized usury, or the locations of payday loan not be in business.
Most major credit cards. legal usury. ING IM bs you keep? see what up to now and commit the federal government itself. July 2010. They have for years. continued interest and fees until the government increased. says I can. all should stop with credit cards. I can not pay more. into bankruptcy.
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