Gambling

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BikerGran · #16 Post by **BikerGran** » Wed Dec 05, 2012 11:45 pm

Willopotomas wrote:I always thought there was a cap on interest rate charges to stop 'loan sharks'.. Capitalism at it's very best.

I think there is, but the problem is that when you can't pay back the loan, they let you take another loan to pay off the first one. By the time you've paid interest on the first loan, then the interest on the secong loan which is an amount equal to the first loan plus interest, so you are paying interest on the interest........ and so on, for ever and ever!

snapdragon · #17 Post by **snapdragon** » Thu Dec 06, 2012 7:40 am

I wonder, in that case, where the cap is set. The advertised rate (in very, very small print) the last time I looked was 4690%pa so no wonder the young chap I read about who borrowed £200 in order to attend a mate's wedding is now £25000 in debt.

Payday loans

I used to lend cash to a workmate who was always short of money in the last week of the month, come first week he paid me back and that happened over and over, however if I had charged him interest he would have been needing a loan earlier and earlier in the month
makes me feel physically ill just the thought of it

am so glad he accepted my offer and didn't go for an 'official' loan

lazarus · #18 Post by **lazarus** » Sat Dec 08, 2012 7:09 pm

You're thinking of the usury laws which were repealed sometime in the 1800s. There currently is no limit on the interest rates that can be charged but then debtors prisons have also been done away with. Dont like the interest? Dont take the loan. Get caught? Just walk away - which is what tens of thousands of people do every year.

And by the way, gambling debts arent legally enforceable at all.