Life

Why Fine Print Really Matters

You may have seen the commercials offering fast loans with no collateral. In some cases, the spokesperson actually acknowledges that the money is “expensive.” Yes, that should definitely be your first clue.

The company I’m speaking of has a teepee in its logo and is apparently owned and operated by a Native American group. I don’t mention the group’s name, frankly, because I don’t wish to give them a plug.

But the commercial I’ve been seeing talks about a $10,000 loan.

If you read the fine print, the tiny disclaimer at the bottom of the screen, you may do a double-take. And then some. The interest rate, according to the fine print, is 89.68%.

But wait, it gets worse! After that shocking bit of news, it goes on to say that customers will pay $743.99 per month to repay the loan. For 84 months!

Does that sound “expensive” enough to you?

It should. Eighty-four installments of $743.99 adds up to — are you sitting down? — $62,495.16.

Sixty-two thousand dollars to borrow ten. There’s something very wrong with this picture.

How this is legal I cannot imagine.

But at least now you know just how “expensive” that money is. I hope you’re never in a situation that would make you even consider such an option!

Common sense should dictate that fine print is “fine” for a reason: don’t let yourself get suckered into something without taking a moment to actually read it!

8 Comments

  1. Hmmm, let me see…
    If you are Mark Zuckerberg and you are refinancing your 6 million dollar house you get a 1% mortgage.
     
    But if you are living from pay check to pay check and you need to borrow money you pay 89% loan.
     

  2. I sincerely hope that there aren’t customers who have actually fallen for this. It’s disturbing that a company could get away with it, to be honest.

    1.  @TedtheThird I suspect it has something to do with the fact that this is a Native American-run organization. If it is headquartered on a reservation, I suppose it’s possible that they might not be subject to the exact same guidelines. I don’t know that for a fact…it’s just a guess.

      1.  @patricksplace You’re right on the, well, money: http://www.consumerfed.org/pdfs/CFA.PDL.Signon.Letter.426.House.pdf
         

    2.  @TedtheThird I suspect it has something to do with the fact that this is a Native American-run organization. If it is headquartered on a reservation, I suppose it’s possible that they might not be subject to the exact same guidelines. I don’t know that for a fact…it’s just a guess.

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Patrick is a Christian with more than 28 years experience in professional writing, producing and marketing. His professional background also includes social media, reporting for broadcast television and the web, directing, videography and photography. He enjoys getting to know people over coffee and spending time with his dog.