Loan sharking? - GoFuckYourself.com

Nysus · 04-10-2005, 05:45 PM

I believe in Canada any interest above 40 or 60% (can't remember which) is considered loan sharking which is illegal.

Here's my question now;

Say you borrow $1,000, with an interest of 15% per month on it. That's $150 per month to payout, totalling $1800 annually received from interest.

Wouldn't that be considered an interest rate of 180%?

Matt

DateDoc · 04-10-2005, 06:38 PM

I believe you can get around the law by making it a 30 day loan that is due in full at the end of the month that then rolls over into a new 30 day loan the following month. Essentially you could just pay the $150/mo. forever and still owe the $1000. I'm sure it varies by juristiction but in FL this was common practice on car title loans.

AndrewKanuck · 04-10-2005, 06:41 PM

The interest rate is based on the loan term - to a max of per annum. ie:

15% interest - 6 month term would be 2.5% monthly interest.
15% interest - on a 3 year loan, would be 15%/annum, not over the 3 year term (unless you got a really kind loan officer)

If someone is charging you the full interest rate every month, then you have a loan shark on your hand.

Nysus · 04-10-2005, 07:00 PM

Well, thank you for all the information everyone.

Matt

04-10-2005, 05:45 PM	#1
Nysus Confirmed User Industry Role: Join Date: Aug 2001 Posts: 7,817	Loan sharking? I believe in Canada any interest above 40 or 60% (can't remember which) is considered loan sharking which is illegal. Here's my question now; Say you borrow $1,000, with an interest of 15% per month on it. That's $150 per month to payout, totalling $1800 annually received from interest. Wouldn't that be considered an interest rate of 180%? Matt __________________ What name is pr0 / Untouched Markets using these days? Untouched Markets - pr0 - Refund My Money Now Someone owes me $2,000 because they didn't do any work that was paid for pointing at pr0 / William / UntouchedMarkets See https://gfy.com/fucking-around-and-business-discussion/948258-untouchedmarkets-pr0-refund-money-post16744521.html and for more detailed see https://gfy.com/fucking-around-and-business-discussion/948645-re-recent-bullshit-drama-explained-detail-pr0-untouched-markets.html

04-10-2005, 06:38 PM	#2
DateDoc Outside looking in. Industry Role: Join Date: Feb 2005 Location: To Hell You Ride Posts: 14,243	I believe you can get around the law by making it a 30 day loan that is due in full at the end of the month that then rolls over into a new 30 day loan the following month. Essentially you could just pay the $150/mo. forever and still owe the $1000. I'm sure it varies by juristiction but in FL this was common practice on car title loans. __________________

04-10-2005, 06:41 PM	#3
AndrewKanuck Confirmed User Join Date: Jan 2004 Location: Cleveland & Atlanta Posts: 6,706	The interest rate is based on the loan term - to a max of per annum. ie: 15% interest - 6 month term would be 2.5% monthly interest. 15% interest - on a 3 year loan, would be 15%/annum, not over the 3 year term (unless you got a really kind loan officer) If someone is charging you the full interest rate every month, then you have a loan shark on your hand. __________________

04-10-2005, 07:00 PM	#4
Nysus Confirmed User Industry Role: Join Date: Aug 2001 Posts: 7,817	Well, thank you for all the information everyone. Matt __________________ What name is pr0 / Untouched Markets using these days? Untouched Markets - pr0 - Refund My Money Now Someone owes me $2,000 because they didn't do any work that was paid for pointing at pr0 / William / UntouchedMarkets See https://gfy.com/fucking-around-and-business-discussion/948258-untouchedmarkets-pr0-refund-money-post16744521.html and for more detailed see https://gfy.com/fucking-around-and-business-discussion/948645-re-recent-bullshit-drama-explained-detail-pr0-untouched-markets.html