John Oliver savages the usurial predation of credit companies, particularly with sub-prime auto loans.
There's a Buy Here / Pay Here dealer about half a mile from here. By Republican 'anything goes' law, they only do what's necessary for business and the market will work it out. Typically, the market works things out by crashing so we're not particularly enamored of that short-sighted, infinitely selfish and amoral logic.
For another little goodie, Democrats (i.e. shallow new kind) voted with Republicans to reject the protections against payday lenders proposed by Elizabeth Warren.
ISIS is irrelevant as America eats itself from within ... to thunderous applause.
There's a Buy Here / Pay Here dealer about half a mile from here. By Republican 'anything goes' law, they only do what's necessary for business and the market will work it out. Typically, the market works things out by crashing so we're not particularly enamored of that short-sighted, infinitely selfish and amoral logic.
For another little goodie, Democrats (i.e. shallow new kind) voted with Republicans to reject the protections against payday lenders proposed by Elizabeth Warren.
ISIS is irrelevant as America eats itself from within ... to thunderous applause.
6 comments:
The car loans are nowhere near as evil as payday loans. Payday loans can easily hit 500% per year.
A $200 loan is only given when you open an account with an application fee usually $100. So before you even walk out tbe door it us at 50%
Most people using this service will have multiple accounts with multiple lenders. The mafia would love this system because it comes with government enforcers.
The buy here pay here repo the car aftee several months and resell it as an added bonus to thier obscene loan rates
Oliver made it clear this exposure is not as bad as sub-prime lending on mortgages but the exposure to people is impossible. The problem as Oliver described it doesn't hit that kind of interest rate but the loans mean the borrower often still owes money after they repo the car. Unbelievable this is still legal.
Those interest rates are for payday
BHPH are usually in tbe 20's but they know the car usually comes back
I knew the situation was bad but not as brutal as it turned out to be. Oliver said a car from those Shylocks is usually repo'ed in about seven months.
Most of those cars,are only worth a couple of grand and the average payment is about $100 pwr week. Selling te same car at market alue and then selling it again and again
I imagine they get the vehicles from wholesalers and Oliver remarked on one case in which the dealer sold the car for two maybe three times over blue book. Caveat emptor always but these are not wary buyers, often not knowing much of anything about the deals.
Oliver related the story of a horror car which was repo-ed (I think) eleven times, maybe a few more. There were some things wrong with it but they never fixed them and only turned the car over again.
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