Friday, August 28, 2015

Not Usury, Just Predatory

Do they have a choice? targets low-income consumers with damaged credit to sell them extremely high-cost electronics and household goods, the complaint alleges. Items sold on Fingerhut to low-income consumers come with substantial markups. For example, Fingerhut currently sells an iPad Mini 3 for $539.99, although its retail price is $399. According to the complaint, this massive sales price markup is actually a finance charge in disguise—violating the Truth in Lending Act, state consumer protection statutes and state usury laws.
Anyone overpaying for an iPad surely knows a better deal can be had at an Apple store, but the customer in this instance is weak, and is being exploited.  Just like when people sign up for Romney?Obamacare. No law can be written to keep the weak out of the clutches of the exploiters.

This is a job for the preacher man, not for the legislature.  I know personally how hard it is, even if you want to and do so and voluntarily want to eschew finance and exploitation, both sides, of usury.  Getting escape velocity is extremely hard.

Write a rule against this, and the two will be back at it in another form soon enough.  It is a matter of personal commitment, not legislative action.

Feel free to forward this by email to three of your friends.