Been hearing tons of cash advance commercials

[bjl584]

I've been hearing a ton of commercials on the radio for payday loans lately. I guess they are cashing in on all of the people that are broke from buying Christmas gifts.

I guess after this long I shouldn't let it bother me, but it still gets under my skin when I hear these ads.

[disneysteve]

I've been hearing a ton of commercials on the radio for payday loans lately. I guess they are cashing in on all of the people that are broke from buying Christmas gifts.

Yep, they are preying on all the folks who overextended themselves to buy gifts. It is a really sleazy business but until Congress acts to reinstate usury laws that were eliminated back in the 90s, this nonsense will continue to happen.

[JoeP]

Maybe the federal government should call these clowns to avoid hitting the debt ceiling.

[nalidixic]

It's actually pretty interesting the amount of work that these companies and banks put into the timing of their advertising.

I've been paying attention to the AdWords ads for terms like "snowball payment calculator" on Google and if you can believe it the banks run debt consolidation ads in the evenings but not during the middle of the day (at least that's what I see).

I suppose they figure they can convert better when people are home from work?

[nalidixic]

Maybe the federal government should call these clowns to avoid hitting the debt ceiling.

Is that call or cull? :P

[bjl584]

It's actually pretty interesting the amount of work that these companies and banks put into the timing of their advertising.

I've been paying attention to the AdWords ads for terms like "snowball payment calculator" on Google and if you can believe it the banks run debt consolidation ads in the evenings but not during the middle of the day (at least that's what I see).

I suppose they figure they can convert better when people are home from work?

I think this is true of all advertising. At least, all good advertising. Any intelligent marketing campaign for any product is going to do target advertising for its products and services. Watch Monday Night Football and you will see much different commercials than if you tune into The Young and the Restless.

[nalidixic]

I think this is true of all advertising. At least, all good advertising. Any intelligent marketing campaign for any product is going to do target advertising for its products and services. Watch Monday Night Football and you will see much different commercials than if you tune into The Young and the Restless.

I swear last time I watched The Young and the Restless with my wife there were at least 5 Budweiser commercials :P

[phantom]

My husband and I heard a payday loan commercial on the way to work this morning, and my husband (jokingly) suggested we should get $1000 so we could be $1000 richer.

It always makes me question my entertainment choices when I start hearing or seeing such ads. But, I don't mind the payday loan ads nearly as much as the reverse mortgage commercials. I'd rather be grouped with young people who make poor financial decisions than old people who make poor financial decisions.

[BMEPhDinCO]

It's actually pretty interesting the amount of work that these companies and banks put into the timing of their advertising.

I've been paying attention to the AdWords ads for terms like "snowball payment calculator" on Google and if you can believe it the banks run debt consolidation ads in the evenings but not during the middle of the day (at least that's what I see).

I suppose they figure they can convert better when people are home from work?

I guess it's too embarrassing to look at that when you are "at work" but then you get home and it's safe... I find it said that we still need these "money men" around at all... I wish people like Dave R. or YNAB would buy the AdWords ads instead!

[woodie96]

I just love the ones for Big Sky Financial.
I paused the TV the other night and read the fine print....for a 10K loan....ready for this

like 750+ a month, for 84 months.....
WOWWWWWWW

[gostumpy]

I saw the same one November 12th, here is my Facebook status update that day:

"Just saw a commercial for a $10,000 payday loan... fine print was displayed for about 1.5 seconds. I had to rewind to check it.. $10,000 with APR of 89.68%... 84 monthly payments of $748.66.... $750 x 84 = $63,000.. $63,000 for a $10,000 loan!!!!!! How is that legal???"

[JoeP]

I saw the same one November 12th, here is my Facebook status update that day:

"Just saw a commercial for a $10,000 payday loan... fine print was displayed for about 1.5 seconds. I had to rewind to check it.. $10,000 with APR of 89.68%... 84 monthly payments of $748.66.... $750 x 84 = $63,000.. $63,000 for a $10,000 loan!!!!!! How is that legal???"

It is legal because it is not illegal to be stupid.

These businesses exist because people will pay for the convenience of immediacy without comprehending the ramifications. The latter takes a little math and separation from emotion.

I'm fairly certain that the business plan assumes a relatively small percentage actually pay the entire contractual amount, and that the remainder of their revenue comes from selling unpaid debt to collection agencies.

[disneysteve]

It is legal because it is not illegal to be stupid.

Actually, it is legal because Congress decided it should be legal.

In the 90s, Congress passed some laws that basically created a free for all amongst predatory lenders. They made a minor adjustment in 2006 that limited the rate that could be charged to active military members to 36% (oh boy!) but they left the rest of the country to fend for themselves. So it remains perfectly legal to charge 50% or 100% or 500% if you can get away with it.

[JoeP]

Actually, it is legal because Congress decided it should be legal.

Clearly, there are people out there who do not have the requisite sense to detect a bad deal. I think we can all agree that when lawmakers fail us with legislation like this, it is the citizens' duty to help look after our fellow man, through advice and education where possible.

[disneysteve]

Clearly, there are people out there who do not have the requisite sense to detect a bad deal. I think we can all agree that when lawmakers fail us with legislation like this, it is the citizens' duty to help look after our fellow man, through advice and education where possible.

I agree, but the fact remains that prior to 1994, this nonsense didn't exist because it was illegal.