NorthofDetroitGuy's Blog

Many people look at Wall Street and Foreclosures and blame mortgage companies and banks.  In fact, some even blame high gas prices on the foreclosure rates due to the declining dollar.  However, I see very little when it comes to limiting pure wastes of money.  For example:  Banks and mortgage companies have you sign around 50 pages of paperwork, including documents specifically showing your payments and if and when they will change.

However, you can go to a payday loan shop, get a loan against your paycheck and their are no laws protecting you.  In fact, for the most part, you can walk in; ask for a loan against your paycheck and with minimal paperwork end up having to pay as much as 50% in compounding interest.

Usury laws on houses currently cap out around 15% and even that is hard to get to.

The payday offices should be replaced with credit counseling offices. 

Normally I am against government interference; however these places are not in anybody's best interest.   It is essentially legal loan sharking.

I honestly believe either our State of Michigan congress and/or our federal government should specify that these places can charge no more then the standard user rates specified on either credit cards and/or mortgages.