This is disgusting. On the “Disclosures” page you can see that the annual rate is 485 percent. Compared to that, credit cards look like a brilliant place to borrow money.

A few observations:

  • The company claims to be based in Grenada. That’s a clever idea. If it’s really run entirely from Grenada (which seems unlikely), then I don’t see how they can ever be prosecuted for doing business in states where loan sharking is illegal. Cutting off their access to ACH might be possible.
  • The possible defense of payday loan operations (and I believe this reasoning has been used, successfully, to lobby for legislative changes relaxing loan shark rules) is that it provides a valuable service to people in a tought spot. Ultimately I think it ruins more lives than it helps.

From the sidelines, it’s easy for me to criticize businesses that have “anti-social” business models. But, if I were starting or running a business, would I do what’s best for the community or do what’s best for the bottom line? Does being a good corporate citizen generate its own financial rewards?

The more I deal with money, the more greedy I feel I become, which doesn’t bode well. I need to find something that will be suitably distracting from material concerns.