Moneylenders Profit Most By Exploiting Others' Need For Money

Moneylenders that take title to cash-strapped customers' cars for short-term loans charge up to 300% APR and take advantage of weak state laws and loopholes.

These guys take NO RISK.

"Title lenders typically target 'captive' borrowers who cannot afford a house or qualify for credit cards, but suddenly confront a cash crisis."

No creativity or productivity required; pure exploitation.

"That's what happened to Sharon Jones. [She] paid $1,365 toward her $500 title loan [that's some ROI, with no risk!!!] because her disability check only covers interest payments."

This is standard operating procedure for moneylenders who profit by charging interest.

"But title-loan industry executives testified that tougher laws will put them out of business and deny cash-strapped Georgians like Jones access to their lender of last resort."

Typical, the old "without us, how will these needy people survive?" I have a novel idea: how's about the government terminates bankers' monopoly on our money supply and lends interest-free money directly to citizens? Then no one will need their magnamious services!

"'The military's an especially ripe target' because of the rank-and-file's relative youth, lack of financial sophistication and concern that money problems could cost them advancement..."

What they fail to admit is that anyone who is vulnerable is a target. And all of us are one step removed from vulnerability.

"Lending money at what amounts to [350% APR] or more should not be tolerated: If the payday and car-title loan industry wants to maintain that such exorbitant rates are necessary to do business, it is business that is not worth doing,"

While these types of loans are particularly egregious because of their extremely high interest rates, even the most modest amounts of interest can transform borrowers into slaves.

Take a look at NYC's MTA. All its bonds are issued at around 4-5%APR and they pay over $1.2BILLION annually in interest on their bonds! So, much of our tolls, fares and taxes go to paying interest on outstanding bonds while we wait in the street for broken down transit!

When will enough be ENOUGH to end this madness?