Comments on: Credit Card Rates and Usury: Where is the Line? http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/ Rebalance before it's too late Thu, 11 Mar 2010 16:12:39 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carnival Roundup - Amateur Asset Allocator http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1246 Carnival Roundup - Amateur Asset Allocator Mon, 27 Jul 2009 03:21:40 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1246 [...] Credit Card Rates And Ursury by My Life ROI [...]

[...] Credit Card Rates And Ursury by My Life ROI [...]

]]> By: Brad http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1236 Brad Fri, 24 Jul 2009 03:25:10 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1236 Credit cards are always a difficult subject. To me they're much like smoking -- No one should do it, but I have a tendency to let people be self-destructive if they so desire. I'd always rather we educate people on why they shouldn't want debt, rather than prevent them from having it. .-= Brad´s last blog ..<a href="http://personalfinanceandinvesting.com/archives/why-everyones-wrong-about-fixing-health-care/" rel="nofollow">Why Everyone’s Wrong About Fixing Health Care</a> =-. Credit cards are always a difficult subject. To me they’re much like smoking — No one should do it, but I have a tendency to let people be self-destructive if they so desire. I’d always rather we educate people on why they shouldn’t want debt, rather than prevent them from having it.
Brad´s last blog ..Why Everyone’s Wrong About Fixing Health Care My ComLuv Profile

]]> By: Carnival of Personal Finance: New Zealand Edition! | Man Vs. Debt http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1139 Carnival of Personal Finance: New Zealand Edition! | Man Vs. Debt Mon, 13 Jul 2009 08:29:49 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1139 [...] My Life ROI presents Credit Cards and Usury: Where is the Line? [...]

[...] My Life ROI presents Credit Cards and Usury: Where is the Line? [...]

]]> By: MyLifeROI http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1072 MyLifeROI Mon, 06 Jul 2009 03:49:35 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1072 @Roger, That would be an interesting debate, indeed. I think payday loans have found a very profitable market in catering to the bad credit market. I don't know if even they deny anyone... does anyone know for a fact? @Roger,

That would be an interesting debate, indeed.

I think payday loans have found a very profitable market in catering to the bad credit market. I don’t know if even they deny anyone… does anyone know for a fact?

]]> By: MyLifeROI http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1071 MyLifeROI Mon, 06 Jul 2009 03:48:19 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1071 @Len Penzo, I, for the most part, agree. But for me that is theoretical. In practice, unless you can guarantee that everyone is being educated to the point where they know they are making harmful decisions I don't think it is ethical. At a time where getting a high school education does not guarantee you have been given the minimal personal finance education, I just can't imagine the repercussions of allowing companies to charge any interest. In fact, you can graduate college without ever having a class in personal finance in your entire life. And we will let companies prey on them? Not something I find ethical. And I am all for free enterprise... as long as their is a protection of the public. @Len Penzo,

I, for the most part, agree. But for me that is theoretical.

In practice, unless you can guarantee that everyone is being educated to the point where they know they are making harmful decisions I don’t think it is ethical.

At a time where getting a high school education does not guarantee you have been given the minimal personal finance education, I just can’t imagine the repercussions of allowing companies to charge any interest. In fact, you can graduate college without ever having a class in personal finance in your entire life. And we will let companies prey on them? Not something I find ethical. And I am all for free enterprise… as long as their is a protection of the public.

]]> By: Weekend Linkage – July 5, 2009 http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1069 Weekend Linkage – July 5, 2009 Sun, 05 Jul 2009 14:27:29 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1069 [...] Credit Card Rates and Usury: Where is the Line? [...]

[...] Credit Card Rates and Usury: Where is the Line? [...]

]]> By: Weekly Round Up http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1065 Weekly Round Up Sat, 04 Jul 2009 12:03:08 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1065 [...] Credit Card Rates and Usury [...]

[...] Credit Card Rates and Usury [...]

]]> By: Roger http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1054 Roger Fri, 03 Jul 2009 04:33:12 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1054 Hun, interesting history of usury. Personally, I think that usury laws do have the unintended side effect of making it harder for poor credit risks to get loans; when there's a limit on the interest rates that can be offered, the only approach that the lender can take is to not loan money to poor credit risks. Whether that's better or worse for those who have bad credit is an interesting debate. .-= Roger´s last blog ..<a href="http://feedproxy.google.com/~r/theamateurfinancier/cFiv/~3/xn_UKDvR2Uk/" rel="nofollow">Common Valuation Ratios</a> =-. Hun, interesting history of usury. Personally, I think that usury laws do have the unintended side effect of making it harder for poor credit risks to get loans; when there’s a limit on the interest rates that can be offered, the only approach that the lender can take is to not loan money to poor credit risks. Whether that’s better or worse for those who have bad credit is an interesting debate.
Roger´s last blog ..Common Valuation Ratios My ComLuv Profile

]]> By: Len Penzo http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1053 Len Penzo Thu, 02 Jul 2009 23:46:19 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1053 I am in the minority as I firmly believe there should be absolutely NO usury laws. If a legitimate lender is willing to take a significant risk on a very questionable client, then why shouldn't they be compensated for taking that risk? After all, if their client has proven themselves to be financially unreliable that lender potentially risks losing 100% of his stake, yes? I know what you're thinking... "But, Len, what if everybody simply decided to charge outrageous interest?" As I see it, one of two things would most likely happen: 1) very few people would bother to take out a loan in the first place; or 2) most of those that did would either skip town and never pay back the loan, or end up quickly defaulting on it anyway. Neither of which is a very good business model if you are a legitimate lender. Now loan sharks, on the other hand, can get away to some extent with charging exorbitant interest because they use illegal means of persuasion to ensure they make a profit. A loan shark will send Vinnie to your house to break your kneecaps if you default -- Bank of America will not. At least last I checked they didn't. LOL! I agree loan sharking is immoral and should always be illegal. But charging high interest in and of itself is not, IMO. It is simply a business decision. A poor one, I'm sure. But a business decision nevertheless. Nice post, MLR! :-) My $0.02 (after taxes) Len Len Penzo dot Com .-= Len Penzo´s last blog ..<a href="http://feedproxy.google.com/~r/LenPenzo/~3/jVR8zHRSyrw/id638-18-things-you-didnt-know-about-the-federal-reserve-system.html" rel="nofollow">18 Things You Didn’t Know About The Federal Reserve System</a> =-. I am in the minority as I firmly believe there should be absolutely NO usury laws.

If a legitimate lender is willing to take a significant risk on a very questionable client, then why shouldn’t they be compensated for taking that risk? After all, if their client has proven themselves to be financially unreliable that lender potentially risks losing 100% of his stake, yes?

I know what you’re thinking…

“But, Len, what if everybody simply decided to charge outrageous interest?”

As I see it, one of two things would most likely happen: 1) very few people would bother to take out a loan in the first place; or 2) most of those that did would either skip town and never pay back the loan, or end up quickly defaulting on it anyway. Neither of which is a very good business model if you are a legitimate lender.

Now loan sharks, on the other hand, can get away to some extent with charging exorbitant interest because they use illegal means of persuasion to ensure they make a profit. A loan shark will send Vinnie to your house to break your kneecaps if you default — Bank of America will not. At least last I checked they didn’t. LOL!

I agree loan sharking is immoral and should always be illegal. But charging high interest in and of itself is not, IMO. It is simply a business decision. A poor one, I’m sure. But a business decision nevertheless.

Nice post, MLR! :-)

My $0.02 (after taxes)

Len
Len Penzo dot Com
Len Penzo´s last blog ..18 Things You Didn’t Know About The Federal Reserve System My ComLuv Profile

]]> By: MyLifeROI http://www.myliferoi.com/2009/07/credit-card-rates-usury-where-is-line/#comment-1052 MyLifeROI Thu, 02 Jul 2009 22:29:02 +0000 http://www.myliferoi.com/2009/06/credit-card-rates-and-usury-where-is-the-line/#comment-1052 @Meg from FruWiki, Nope, there was not a joke in that statement. I did laugh when I read that I put common error, though. Obviously, common era :) Must have gotten ahead of myself when typing, haha. The AD... well, I have been living my life a lie. I have always thought of it as after death because I thought that logically followed BC since that is before Christ and all. You are right, my bad, and thank you for correcting me :) @Meg from FruWiki,

Nope, there was not a joke in that statement.

I did laugh when I read that I put common error, though. Obviously, common era :) Must have gotten ahead of myself when typing, haha.

The AD… well, I have been living my life a lie. I have always thought of it as after death because I thought that logically followed BC since that is before Christ and all. You are right, my bad, and thank you for correcting me :)

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