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Smart Shopper Buy Here, Pay Here
328 messages, Last post on Jul 19, 2009 at 7:42 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: lemko (Mar 03, 2008 12:04 pm) Johnson is paying about $40 per month on the principal and about $200 in interest. If he stops, he'll lose the car. If he continues, he'll sink more money into the car than it's worth. "I'm paying $5,000 for a car that cost me $1,300, and if I get sick and miss a payment or can't make a payment they're going to come take my car away," Johnson, a 67-year-old retired carpenter, said in a telephone interview. Johnson now wishes he'd just gotten a payday loan. At least then, he says, he would have known what he owed. Either way, he said, legislators need to protect families like his from predatory lenders. Man, that just burns me up. Here a poor blue collar worker just trying to make ends meet is forced at gunpoint to take a handful of cash and hand over his car keys. When is the government going to step in and stop this victimization?! Reminds me of the time a banker came to the house and held a knife to my wife's throat while I signed documents to refinance our home. Anyone know a good lawyer that can help me out?
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Replying to: qbrozen (Mar 03, 2008 12:30 pm) Not to sound unsympathetic, but the numbers in that article just don't add up. First, the current balance on the loan is greater than the amount borrowed ($900 vs. $800). How is that possible? Second, the article claims Mr. Johnson is paying $240 per month ($20 principal + $200 interest) but has already made three payments totaling $533 which works out to $177.78 per month. Which is it, $240 per month or $177.78 per month? Finally, if he's paying $200 interest per month on a loan with a balance of $900 then his monthly percentage rate is about 22%. which adds up to an astonishing 264% annual percentage rate. Even a predatory lending organization is required by law to inform the customer what the APR is along with the total amount that will be paid over the term of the loan. Mr. Johnson had to have been aware when he signed on the dotted line that the total cost of this $800 loan would be over $5,000. The government should certainly go after predatory lenders. However, I suspect the author of the article botched it and just didn't get her facts straight. And if the 67 year old Mr. Johnson was either completely oblivious to the tems of the contract into which he entered or was unable to coherently convey the facts to the author of the article then perhaps he ought not be driving in the first place. tidester, host SUVs and Smart Shopper. |
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Replying to: tidester (Mar 03, 2008 2:43 pm) No, this doesn't add up. It is a sad story and I feel for this guy especially at the age he is. Still, he put himself in this position either by not paying his bills or making some horrible decisions. This is when family support is needed. Hopefully this may be available to him. |
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In my state it could be a pawn shop loan. There are restricted to something like 35% PER MONTH interest rates. |
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Replying to: lemko (Mar 03, 2008 12:04 pm) 
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Replying to: mitzij (Mar 04, 2008 7:16 am) Sometimes it's not the person's fault. A job loss or medical emergency can put a person over the edge. |
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Replying to: tidester (Mar 03, 2008 2:43 pm) |
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Replying to: tidester (Mar 03, 2008 2:43 pm) I think you missed the sarcasm. He even said at the end that a mortgage broker came over and put a knife to his throat to refinance the house.... (sarcasm) |
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Replying to: qbrozen (Mar 04, 2008 8:54 am)  tidester, host SUVs and Smart Shopper
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Replying to: tidester (Mar 04, 2008 11:10 am) Just checking.
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