Payday Loans Lead to Tragedy
Payday loans can have interest rate charges of 700%, but can also lead to tragedy for the people who makes these loans out to people. One professional race car driver, Scott Tucker, paid for his expensive hobby make giving payday loans to people with 700%, or even higher. The people who took out these loans were often needy and desperate, and there were millions of them.
Then, Scott Tucker, race car driver, was indicted in New York for racketeering.
“Tucker and Muir deceptively preyed on more than 4.5 million working people” by allegedly luring them “to enter into payday loans with interest rates ranging from 400% to 700% percent,” said FBI Assistant Director-in-Charge Diego Rodriguez. “This scheme, like so many others who swindle innocent victims, only ends with an arrest by the FBI.”
Why People Take Out Pay Day Loans
And you can’t blame desperate people. If someone needs tires for their car to get to work, they will sometimes rely on a pay day loan. The trick to understand about pay day loans is they are due to be paid right away. Of course, if a person had the money to pay a bill right away, there would be no need for a pay day loan.
Human Consequences of Pay Day Loans
People with payday loans are even desperate enough to commit suicide. One grandfather killed himself after getting into debt after his benefits were cut.
Sixty-year-old Ian was receiving a text message every 10-15 minutes over the money he owed from the payday loans even after his death, his daughter Samantha told Good Morning Britain.
Of course, this tragedy happened in the UK. In the U.S., texting someone about a debt is illegal, and can result in large money damages.
The disabled are also targeted for these short-terms loans, with sad results. A teenager from Greater Manchester hung himself after a payday lender emptied his bank account. It was so disturbing that the coroner made a public statement for law to protect against payday loans.
After finding that the teenager had taken his own life, South Manchester Coroner John Pollard voiced concerns that there may be similar deaths in the future unless changes were made.
Abusive Debt Collection of Pay Day Loans
If you are having debt collectors text you, or call you on your cell phone, there is a solution. Phone Axsmith Law LLC at (202) 285-5415.