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Have any of you been watching this show on Netflix? The second episode is about Scott Tucker and his payday loan business and racing operations. Somewhat parallels a speedway and person that we all know. Good way to learn about how the business works and how it can impact folks who don't read the fine print. 

Sounds interesting, thanks for posting I'll check it out.

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My opinion from watching the episode. Payday loans are a predatory business and I believe that it was obvious in reading the loan documents that the loan must be paid in full. I do not condone these businesses but it's a brilliant business model from a purely business perspective.

I was involved in road racing when Scott Tucker cam into the sport. It was evident at the time he had no control in his spending. He was above everybody in his own mind, but what is really sad is how he hid with Native American buisness prractices andd the loss of a family member to avoid prosecution. There is a special place in hell for this guy is all I can hope. Many, many peoples life ruined!

I have not seen the show but I disagree with your statement (if I'm reading it correct).  These payday loans are a ripoff but shouldn't the borrower have a little responsibility in this?  I have never taken one of these loans nor would I ever but if someone was offering me money when no one else was I would sure want to know what the terms were.  I think that's part of what's wrong with our country today, somebody is put in a bad situation and it has to be somebody else's fault.  People don't want to take responsibility for their own poor choices.

Yes, the folks that rely on this type of borrowing created their own bad situation, with only a few exceptions. But rather than allow for this kind of business to screw those people, there should be a "loan to survive" money management system in place. Either an approved private business for profit or a state run program (also for a profit) that will help these peple out of their holes. To allow a business to make millions off these folks is cruel. Instead, society just allows for them to get buried even deeper. The same as most all wellfare programs do. Most are poorly thought out.

I believe (please correct me if I am wrong) the example they gave was a $300 loan costs $975 if you only make the minimal $90 monthly payment. This "payment" is actually only a loan renewal fee and does not decrease your balance. This continues for a number of months until the renewal fees go down and you eventually make a dent in the principal to the eventual tune of almost a thousand bucks. Hiding behind the Indian Tribes was a very sad part of his business practices as well. Must have really, really hurt when the FBI came and took the Daytona 24 winning car out of his trophy room. I didn't feel bad for the guy one bit. 

The only part I disagree with is to have it a government program.  The government couldn't make money running a popcorn stand.  

The people that are taking out these loans have put down no collateral and are a high risk for default.  That is why the fees have to be so high and why banks are not in this kind of business.  If there was a way to make money in this industry without the high rates the banks would jump all over it.

Go to Title Max. See how that's working out for people ? But they do it everyday.

The exact words from the loan article presented in the program was for a $300 dollar loan and said "Your payment schedule will be 1 payment of $390 on 2010-07-30, if you decline the option of renewing your loan." Two sentences laters it says "If renewal is accepted you wil pay the finance charge of $90.00 on 2010-07-30".

By not paying out the loan in full by the date it was due you agreed to "renew" the loan. All the documents were seen in the links that someone was supposed to click on when they agreed to the terms of the loan as they were online company. Assuming most people didn't read the loan documents, which I believe is likely what happened, this is where the misunderstanding that the finance charge was payment towards the principal of the loan.

What was truly wrong that they did was not how they structured the loan in my opnion, but how they circumnavigated state laws by using native american tribes as a cover for the company. That and falsely reporting that the facility was located in Oklahoma where the tribe was is what makes this case to me seem like it was an intentional thought to defraud.

My initial comment was more or less defending that anyone taking a loan from there who actually read the loan paperwork would've understood the setup of this particular loan. Tucker and the other associates took advantage of the fact that they knew desperate individuals wouldn't read the paperwork within the links, and that is why I said it was good business  model. Obviously based on how much money they made it certainly worked.

i agree.  These payday loan people are scum.  So----I stay away.

Kinda like a comedian once said "I hate Bed Bath and Beyond.  I don't like what takes place there.  So you know what?  I don't go there"

There should be no limit to what interest is charged.  It's called capitalism.  On the other hand, if you're dumb enough to partake in a payday loan, you deserve what's coming to you.  

It's funny how we let Walmart ruin our retail economy 20-30 years ago, now we're going to let Amazon ruin our retail economy even farther.  Yet, we feel it is legal to limit payday loan companies because they're ruining people's lives?  

Nobody is ruining anyone's lives but themselves. Everybody wants to blame everyone else for their predicament and their station in life. HORSEHOCKEY!!!!

I'm tired of being taxed so idiots can be bailed out, have better vehicles and homes than I plus get free food, cell phones etc.

I am lucky enough to work at one of the best tracks 
anywhere.

The bank's hands are tied up by federal regulations and board supervision, therefore unable to create a loan process that might have a solution.  My thought about a government program also considers just how many of the folks using this loan method are also recieving welfare? Maybe a proper program could help with both situations that exist. I know the government screws up most everything, but a lot of that boils down to the corruption in government, at all levels. Too damn many people handling the money is the biggest problem! We could start by taking spending away from congress.

Totaly agree with that!

If you think taking advantage of poor people is "a brilliant business model".....

Desperate people do stupid stuff all the time.... don't blame the victim

"We could start by taking spending away from congress"????? Who exactly would you give it to? The Constitution says its our elected representatives

Maybe it's time for us to have a financial branch of government. The beauty of our constitution is that our forefathers allowed for it to be changed.

Thank you.  I could not have said it any better myself.

I totally get that desperate people do desperate things all the time, but that doesn't make them blameless.  Now if I'm in a situation where I need the money, maybe for medical costs for a family member in a life or death situation, I would take that loan everytime.  But that doesn't mean that after I agreed to the terms and they fulfilled their part of the deal in giving me the money when I couldn't get it any other place that I can say "No that's not fair, the interest rate's too high I don't think I should have to pay that back."  When the money was being waved in front of my face the terms were ok then.

I liken this situation to when lots of people lost their homes to foreclosure.  The banks were giving interest only loans or adjustable rate mortgages.  Many people thought it was the banks fault for giving those loans.  But the way I see it is what the hell were the people borrowing the money doing taking out those loans for?  If you don't have a clear path or guarantee that you will have a lot more money at your disposal in 2, 3 or 5 years then why would you agree to take that loan?  I was given that opportunity back then but I didn't have a winning power ball ticket in my pocket or a sick relative ready to give me a pile of money when they died so I declined and guess what I still have my house today.

You know what I don't like?  Paying off student loans every month.  It doesn't seem fair, every month I have to pay back money and I have nothing to show for it.  But the way I see it, I agreed to those terms when I took the loans out.  I needed the money and they were willing to give it to me and the money they gave me was the difference in getting a degree or quitting school to go back to work.  So I pay them and even though I don't like paying the bill, I do it, I knew the terms when I took them out.  On a side note a student loan has pretty good terms and is not like these kinds of loans and I do have a degree to show for it which helps me make a lot more money than before and it doesn't affect my living style at all.

But to say don't blame the victim.  This is not a rape situation.  The "victim" as you call them agreed to the terms.  Have you seen Breaking Bad?  For those who haven't I'll give a short summary.  A chemistry teacher gets stage 4 lung cancer, he can't afford the treatment so he decides he'll start making meth, he makes the best meth available and can't get out even though he would like to.  He either directly or indirectly kills many people in the process.  Should he not be blamed for all the deaths he caused?  Or how about all the lives he ruined just by making the meth available?  Should all of this be forgiven because he was a victim of bad health?

I'm not trying to insult you or anything.  It's just my opinion that if a person agrees to some bad terms they can't back out on the deal later because when they have to fulfil their end of the deal, they don't think it's fair.