10-26-2017, 02:04 PM
Fraud, usury and high interest rates for high risk loans are all very different things.
42% is a very high APR, and sure seems like usury. But that's actually only 3% a month, on loans that have a very high rate of default (which is why no one else will lend to them, and why they need to borrow at 42% APR). It's not supposed to be a long-term loan - I pay $3.50 every time I take $100 out of a non-network ATM. 3.5%, and the money is already mine!!!!
Think about that. Ignoring partial defaults and payments, at 3% if you have just 1 out of 34 people who don't pay you back then you lose money.
42% is a very high APR, and sure seems like usury. But that's actually only 3% a month, on loans that have a very high rate of default (which is why no one else will lend to them, and why they need to borrow at 42% APR). It's not supposed to be a long-term loan - I pay $3.50 every time I take $100 out of a non-network ATM. 3.5%, and the money is already mine!!!!
Think about that. Ignoring partial defaults and payments, at 3% if you have just 1 out of 34 people who don't pay you back then you lose money.
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