Western Sky collateral-free loans

just curious what kind of rates these guys charge, so i hit their website and got this chart:

Column 1: Loan Product Column 2: Borrower Proceeds
Column 3: Loan Fee
Column 4: APR
Column 5: Number of Payments
Column 6: Monthly Payment

$10,000 $9,925 $75 89.68% 84 $743.49
$5,075 $5,000 $75 116.73% 84 $486.58
$2,600 $2,525 $75 139.22% 47 $294.46
$1,500 $1,000 $500 234.25% 24 $198.19
$850 $500 $350 342.86% 12 $150.72

OK so i suck at columns. the point is that they charge a $350 fee to make a $500 loan, and the repayment is 12 payments of $150.

Honestly,

I love it.

I love that the Native Americans are using our tricks on us. Tax free smokes and booze, gambling and now, quick easy money. Just sign on the dotted line.

History it seems, is not without a sense of irony

1800$ to borrow 500$

Im in the wrong business.

342% interest? Holy peace pipe that's insane!

Actually it's a guy who's been banned from making loans in the U.S. who has persuaded some Indians to partner with him since their laws don't prohibit it.

I don't remember his name, but it was all over the news a while back.

I like the war drums (background music) in their commercials.

-James

Mmmm..usury...mmmm

Can't see how thats legal.

In reply to Streetwiseguy:

IIRC the legalized loan sharks lobbied very hard either for removal or exemption from usury laws.

Their radio commercials out here say something along the lines of "sure, the money is a little expensive". They weren't kidding.

Exactly. Indian reservations operate under a different set of laws than the rest of the country, that's how Harrah's was able to open a casino in Cherokee, North Carolina. The other side of the coin: many reservations are dry meaning no alcohol sales and that applies in Cherokee. Except in the casino.

I can read the fine print on the TV ad, right now: The APR for a typical loan of $10,000 is 89.88%, with 84 monthly payments of $743.99.

I'll save you the trouble of doing the math. That ten grand will cost you $62,495.16.

the Indians work under a different set of rules due to prior agreements with the US Gov yrs ago. Usery laws dont apply just like the gambling laws dont.

What kind of rules do they work under? One more time ought to do it.

RealMiniDriver wrote: I can read the fine print on the TV ad, right now: The APR for a typical loan of $10,000 is 89.88%, with 84 monthly payments of $743.99. I'll save you the trouble of doing the math. That ten grand will cost you $62,495.16.

saw that the other day, who signs up for that?

Does the interest count in a 20XX budget?

In reply to whenry:

Good post.

Would read again,

and again,

and again,

and again.

I dont know what went wrong. Tech beat me on that post.

In reply to whenry:

You know you can delete those posts yourself, right?

BoxheadTim wrote: In reply to whenry: You know you can delete those posts yourself, right?

Why would he?

He meant every one.

I always thought that those commercials were funny. Those guys might be worse than the nigerian e-mail scammers. Anyone dumb enough to buy into that sure is a special kind of stupid.

whenry wrote: the Indians work under a different set of rules due to prior agreements with the US Gov yrs ago. Usery laws dont apply just like the gambling laws dont.

Yes but that street goes both ways. They cannot collect using traditional means.

AngryCorvair wrote: OK so i suck at columns. the point is that they charge a $350 fee to make a $500 loan, and the repayment is 12 payments of $150.

Yeah, but just agree to whatever they ask, make a deal and then when it isn't working out for you - give them blankets full of small pox. They have been doing business like that for years. I don't know how they will ever get ahead.

This seems eerily similar to the business plan that made Scott Tucker millions and the target of a federal investigation.

oldsaw wrote: This seems eerily similar to the business plan that made Scott Tucker millions and the target of a federal investigation.

I just wiki'd that guy. Holy crap I am doing it wrong. I guess I just need to sell some questionable loans, do a year at club fed, get arrested again and I get to race Ferrari's

It seems that Indians must be working under a different set of rules than the rest of us or something.

There is only one rule when it comes to shady loans, and that rule is "there aint no rules"