Q&A: Pay Day cash advances establishments are known to be corrupt, can I have examples?

Question by Beep B: Pay Day cash advances establishments are known to be corrupt, can I have examples?
My friend is using those places to get those 2 week loans,I keep telling her not to but she says she has no other options. I would like to explain to her the facts behind these bad businesses can you give me some facts to dissuade her??

Best answer:

Answer by v b
I wouldn’t say they were corrupt, rather that they legally rip her off.

1. Even if she pays the loans back, she is paying a ridiculously amount of money in the process. For example, she borrows $ 100, but pays back, what, $ 122? For 2 weeks that’s the equivalent of 600% interest. My checking account is paying .1%.

2. One of these days, she will trip up and NOT be able to pay them back. So she’ll renew the loan and renew the loan and renew the loan. The fees will eat her alive.

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