Ask MetaFilter questions tagged with usury

Help me avoid being a loan shark.

Salvor Hardin — Sun, 21 Jun 2009 07:08:54 -0800

What's the scoop on the interest rates charged by Kiva's microfinance institutions? I am interested in lending some money via Kiva.org. Kiva has gotten pretty positive press, and the concept makes a lot of sense to me. However, I have heard conflicting and worrying things about the interest rates (averaging around 20%) charged by the regional microfinance institutions that Kiva uses to actually lend the money.

I have heard both that the interest rates are usurious, and also that they are way better than other interest rates that are available in impoverished areas of the world. It seems a bit suspicious that Kiva doesn't tell the lender (as far as I can tell) what the interest rate charged on their loan is. This FAQ from kiva.org seems to explain the high interest rate pretty reasonably, but IANAeconomist, so I feel like I could get suckered. This AskMe question has a bit of a side thread about this topic, but it wasn't very conclusive.

So: What's the real deal about Kiva? Do they suck the life out of poor people with predatory interest rates? Or is it the shining beacon of a new and better way to alleviate poverty? I also welcome any other insight about the pros/cons of kiva.org. Thanks!

Whaddya mean I owe you 700 bucks?!

richter_x — Tue, 20 Mar 2007 17:53:06 -0800

Options for (re)building my credit...how best to re-build my credit history with an eye towards home ownership... After a period of credit irresponsibility in my youth, I am trying to rebuild my credit. I have a time table of a few years to accomplish this.

I have the opportunity to take out a small loan (under 4 grand, but at a positively usurious rate of 29.47%) to add a positive entry to my credit report.

My question to the hive mind is, is there a better way to do this? I have positive entries (paid off car loan, second car loan, charge cards that are current), but I can't seem to shake the negative ones.

For what it's worth, my score hovers somewhere around 590 (depending on which agency you ask), and I have the income to support taking out a loan at a loss to help build this.

How to not break legs in case of default?

Clementines4ever — Tue, 30 Jan 2007 05:26:45 -0800

How do I lend someone money? I would like to lend someone 5000 dollars. What documents should I draw up to protect myself in case the person is late or refuses to return the loan (it is low risk)? The loan would be for a period not exceeding 60 days. Also, how can I get around the usury laws in Canada (max 60% interest) if the person has offered 15% over the 60 days (90% APR)?

British Columbia Avarice Association

weapons-grade pandemonium — Tue, 15 Aug 2006 11:12:17 -0800

My home insurance company (BCAA) has recently started charging 3% interest for monthly premiums debited from my bank account. They never used to do this. The fine print says the interest is charged on the entire premium, so it works out to 5.5% when calculated on the declining balance throughout the policy year. It doesn't amount to much, but I can't stand this greedy nonsense. The premium is paid each month before I "use" the insurance (unlike a phone bill), so I am never indebted to them. How can they get away with this? Is there any legal precedent for disputing it? (I know I can just pay the whole premium up front.)