Pay day loan companies have grown from small mob run front stores to a multi billion dollar industry. According to the Department of Justice, pay day loan companies nationwide have garnered twice the profit than Las Vegas Casinos combined. In a town of a hundred thousand populations there is an average of no less than 20 to 30 pay day loan companies, with hundreds of others spreading across the United States every year. Pay day loan companies are one of the most lucrative and fastest growing businesses in the U.S.
Compared to 462% percent interest, the borrower has a better chance of surviving financially at a blackjack table in a Las Vegas casino. These predator loan companies argue that they give the poor access to obtain a small loan, whereas a bank would not. This is true, yet while these smooth talking con artists shell out a small loan, with collateral attached, the end result spells out financial disaster for the borrower. If a borrower is 24 hours late paying on a loan, his loan is quickly defaulted, his collateral, such as his automobile, is immediately confiscated. Usually the cost to repay the loan has tripled, making it impossible for the borrower to repay the loan. The Predator loan company then seeks judgment in small claims court for triple costs, including attorney fees and court costs, where they are always awarded judgment. The moment the borrower signs his name for a loan, the trap snaps shut, holding him hostage to a ruthless, greedy predator.
As long as these predator loan companies are allowed to operate under the protection of state and federal law, America’s poor remains in financial danger to these corrupt rogues posing as legitimate businesses. The Gambino Group and the other afore mentioned gangsters, with the help of state governments, have gotten rich off the backs of the poor. It is time that state officials nationwide put a stop to legalized criminal activity by closing down predator pay day loan companies. Government officials must act quickly to close down these predator pay day loan companies. As long as citizens prolong their silence, these guttersnipe thugs will continue to operate legally under the umbrella of state and federal law.
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