To bad the CFPB doesn't have jurisdiction on these guys.

342.86% APR seems reasonable.

http://www.westernsky.com/General/Rates.aspx

Darn, their loan products are not available to me in California.

::googles "loan shark"::

Interesting. If they are not subject to state and federal laws, why bother stating the APR? And if our laws don't apply to them, then their laws don't apply to borrowers when Western Sky wants to be paid back, right?

Auto title lenders and payday lenders in Texas will go more than 600% APR.

Isn't that the one with the commercials with Montel Williams? They even state that these 'loans' will be expensive.

The ones I've seen have this Native American looking female with the stereotypical long braids and ceremonial drums playing in the background. I HATE those commercials!

ETA: I can't find it online, but the one that plays here is super serious, she doesn't smile, and at the end she has this line that makes it sound like these "loans" will save your life. I think it is something like "Yes, it's expensive, ...blah, blah....but you can't afford not to" or something of that nature.

Dani - that is the Western Sky Financial advertising.

Thanks - that's it. Montel must do another one.

I know. I thought that's what we were talking about.

Montel does the commercials for Money Mutual.

It's sad that I know that, but most likely because I get so angry at the television when these ads come on.

When these commercials come on, I always pause the TV and rant to the hubs about how it is so unfair that they can get away with this. For a $10,000 loan, you pretty much have to make a payment equivalent to a mortgage loan to pay it back.

Is it just me, or does Montel sound a lot like Barack Obama?

Magic Johnson does these same type of predatory commercials, I think he even has invested in the predatory lending companies.

And aren't a lot of those "Native American" lenders backed/funded by regular old corporate businesses that are completely unaffiliated with the tribes? I had heard that at some point, I think I'd read it was largely based out of Omaha? That may be made up though. When I don't have my facts right, I just fill in the blanks some times

I've seen commercials for these high-cost lenders that use slogans "Don't be broke" and "solves problems now". If only people understood that having cash in your bank account and/or pocket that you are paying for at a 342% APR means that you will be much more broke than before. And getting these loans is like putting a Band-Aid™ on a shotgun wound.

Do you work for the CFPB?