Balancing Act

Have you seen those commercials with Gary Coleman for some company called Cash Call that makes unsecured loans? I was looking at the terms in the small print at the end of the commercial, and holy cow, I didn’t even think this was legal.

They say on a loan of $2600 the interest rate is 99.25%. That’s right; 99! Not 9.25%, but 99.25%!! The terms they list are 42 monthly payments of $216 and change. So at the end of 42 months, that original $2600 has run you over $9000! Usury!

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I realize that people don’t have to take the loans, and that everyone has the opportunity to look at the fine print, but geez. It just seems like terms like that really prey on people who can least afford them. I suppose the company would argue because they get so many defaults they need to charge the high interest rate, but still. I didn’t think an interest rate that high was legal.

As for Gary, I know he’s just trying to make a buck, but he should go hawk Depends or denture cream instead. Seems far less humiliating than being associated with Cash Call.