[m463]

It would be more ethical on all sides if there were hard limits on the "usury rate".

I think it was acceptable in the past when credit cards had a hard limit on the interest percentages (I recall maybe 12%?).

I was kind of appalled when the percentages were relaxed years back and when 24% and 36% became possible, they were immediately the norm.

Availability of capital is great, but not at the expense of perpetual indentured servitude.

[dannypgh]

In these products, the stated interest rate is often low, but when you factor in fees the effective interest rate is astronomical.

Fees are also why payday loans can be attractive over real banks - a payday loan is likely cheaper than a checking account overdraft.