Cash Money® Sale! (Ugh)

Jun 19, 2014 by

Wow, how would you describe this commercial? Obnoxious? idiotic? pathetic? insulting to women and anyone else with cognition? These all seem appropriate, but you probably have some more original thoughts you might like to share in a comment please.

No to payday loansCash Money®

Cash Money® is a payday lender. I believe the company does not operate in the U.S., but many, many identical outfits do. I’m on its case in particular because a) I don’t want Money Counselor readers using payday lenders, and b) Cash Money® has a place of business in my community, a short distance from my home.

New Cash Money® Sale

The commercial above is over two years old. I saw a new one on television recently, but couldn’t find it online. The offer’s been sweetened: now you can borrow $300 for just $20!

The “Bargain” Cash Money® Is Offering

Here are the details that underlie the $300 for $20 offer:

payday loan terms

The fine print.

In a nutshell, borrowers pay $20 for a 14-day, $300 loan. This works out to an APR of 174.1% (you can examine my math here).

The old offer promoted in the commercial above—borrow $200 for $20—works out to an APR of 261%.

So Cash Money® has slashed its APR by 87 percentage points. What a deal?!?

Why Cash Money® Offers 14-Day “Teaser” Rates

You know you’re already visiting bizarro world when 174% is a lender’s teaser rate, but here’s the kicker: If the first loan is extended—and most payday loans are—”regular fees apply,” and those fees of $69 every two weeks for each $300 borrowed (the maximum allowed by law, according to the fine print) translate to an APR of a whopping 600%.

Now you see why Cash Money® spends money on commercials designed to suck people onto its nasty treadmill to financial oblivion!

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