“With Simple Loan, U.S. Bank checking account customers can borrow between $100 and $1,000 with no hidden fees. Repayment takes place over three months via three fixed payments. The loan provides immediate access to funds with simplified pricing of $12 for every $100 borrowed with autopay from a U.S. Bank checking account, or $15 for every $100 if paid manually. The terms of the loan are detailed on our website at usbank.com/simpleloan.”
From the website:
“The U.S. Bank Simple Loan is a quick and convenient way for U.S. Bank checking customers to borrow up to $1,000 to take care of planned and unplanned expenses.”
Payment Example
“If you borrow $400 and select automatic payments, your fee will be $48. You’ll pay back a total of $448 in 3 monthly payments of approximately $149.33 each. Your total cost to borrow (Annual Percentage Rate) will be 70.65%.”
Dafuq? They have the balls to put 70.65% interest rate on their website. Furthermore, they advertise that people can use these loans for “planned expenses”. The fact that this product exists means someone wants it I guess…
Half on Ripple, half on my Rams covering tonight in OAK. That’ll be 20% finder’s fee. I accept cash, money order, all major credit cards (3 percent processing fee), and of course…Ripple.
Also, proponents would argue that you shouldn’t annualize the cost because it’s not intended to keep occurring. But the law doesn’t allow different calculations
Let me tell you that I have some friends (not financial-related professionals) that take small, short-term loans recurrently because they can’t bear the interest accumulation and also don’t want to change their life style expenses too much. Stupid, I know, I try to explain and advice. It’s difficult…
