At the present time I am on disability. Before someone jumps on me and says that I am living on the Government dole, I am not. I have always paid for Long Term Disability. I do have my resume' on Monster just to see how the economy is coming along and hopefully one day I will get to go back to work. I got an email today from a title company offering me up to 150,000 thousand dollars a year plus bonuses. I was flabbergasted and disappointed at the same time. I know that I am not physically capable of working yet and this seemed like a great job. The email said I would be working directly for the CEO and gave me his contact information. A few hours later I got a call back from this man and he was excited. I have an extensive background in Information Technology, and managerial financial experience, this company wanted this exact combination of talent and experience.
My fist question to him was how a company could be doing this well during the recession to pay someone so much. He went on to tell me that his company was providing a much needed service to American's that couldn't get loans because of the current credit crunch. He went on with his pitch that he could get anyone financed that had a car paid off and a job and/or a checking account and a job. He said business was great and they were raking in money hand over fist. I immediately smelled something more rotten than a three month old fish in the trunk of a hot car. I said you must be one of those car title loan and/or payday loan companies. He affirmed my suspicion and he could tell I wasn't impressed. He told me that they charged the lowest price in the industry, only 19.99 percent or really 20 percent. I was shocked that the interest that was so cheap compared to what many credit card companies were charging today.
I asked him again do you really only charge 20% APR (Annual Percentage Rate)? He said no we charge 20% per month and my jaw dropped and I called him a crook. He made an indignant grunt and said that most companies were charging 25 to 30% per month. That is 240% to 360% per year, those are worse than loan shark rates and it is legal in at least 22 states. A loan of 1000.00 dollars would cost 200.00 to 300.00 dollars month in interest, that doesn't even include paying down the principle. A ten thousand dollar loan would cost 2,000.00 to 3000.00 dollars a month in interest.
People every day you drive past a payday loan and/or a title loan company and this is what they are charging people who least can afford it. I asked this man if it was a hard sell and if people wouldn't just let their cars go so they could keep their houses. He told me that you can sleep in your car but you can't drive your house or apartment to work. I don't know exactly what superlatives flew out of my mouth but he did hang up on me. No wonder we have so many people that can't afford a roof over their head or the ability to get to a job. Can this be a major reason we are in such a bad recession? I am so mad I can't see straight, this is criminal and it should be illegal. After completely some more research these companies (thieves) are contributing millions of dollars a year to politicians. Any politician that takes money from these people should be impeached and imprisoned as far as I am concerned. The people who started these companies and are running them are no different than loan sharks, at least when you are dealing with a loan shark you know what you are getting yourself into.
If I had not been diligent enough to ask him if this interest was per year I would have thought this was a decent deal for people with marginal credit. I am sure many people fall into this trap and who knows what street corner they end up living on afterwards. I agree that the Government should not interfere with legitimate businesses. These are not businesses they are crooks and they should not be allowed to exist. This is further proof that the Government needs to set a maximum interest charge either by state or even federal law. This is an example everyone is not equal under the law and unscrupulous businesses can buy our politicians.