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Three Digit Interest Rates

Three Digit Interest Rates

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Three Digit Interest Rates

78 pagine
49 minuti
Jan 5, 2016


If you like vehicle repossession stories, you will like this book. I also share with you my insights and 11 1/2 years work experience in the High Interest Loan Industry in the United States. Topics include income, collateral, the application process, and collections. I also share customer short stories.

Jan 5, 2016

Informazioni sull'autore

I have worked in Accounting and Finance since 1999. I started in the High Interest Loan industry in December 2003. While in this industry, I have worked for both a locally owned business, and a nationwide company. I have a Bachelors Degree in Finance from Missouri State University in Springfield, Missouri. I am married and I have two daughters. I have a passion to help people who are struggling financially. I have been actively involved in the travel industry since 2012. I have a real passion for Alaska and Western Canada travel.

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Anteprima del libro

Three Digit Interest Rates - Christopher Donegan



Three days before Christmas, 2003, I started as the Manager of Affordable Equity Finance Co.  I had worked just weeks before at Peoples Bank of the Ozarks in Clever, Missouri as a Loan Officer.  At Peoples Bank, an interest rate of 20% APR was at the top end of the scale.  At Affordable Equity, our rates ranged from 115.58% to 243.35% APR.

Why would anyone sign up for an interest rate this high you ask?  After reading my book, I hope to give you a better picture of why the high interest loan industry exists, the different parts of the loan process including what happens if a vehicle is repossessed,  and provide insights into what Affordable Equity Finance did as a company to make lending fair and just.  I also want to share with you short stories about the customers who borrowed money, and the repossession agents that went after the individuals who borrowed money and decided not to pay.

Interest Rates, Income, Terms, and Collateral


You may have picked this book up to try to wrap your mind around why someone would subject themselves to a three-digit interest rate.  It’s not as bad as it sounds.  Boy do I sound like someone who is on the sales side of this industry.  Let me show you what I mean. 

If you want to borrow $150.00 to cover a bill and your bank balance says $6.57, what are your options?  You can pay for the bill with a check, and get dinged with a $30.00 overdraft charge from your bank to cover the check.  Lets say you go ahead and go this route.  BAM!  Now you need gas money really bad to see your mother who has come down with a nasty case of pneumonia and she lives 120 miles away.  You write another check for the $32.00 in gas and SMACK, the bank hits you with another $30.00 overdraft charge.  Now lets say your car is paid off and you have the title in your safe deposit box at the bank.  You could ask the bank for a small loan on your car, say $500.00.  The banker may be polite, but, unless you are a VIP (Very Important) customer, the banker must say no to this size of a loan for profitability reasons.  You try the car title loan office down the street from your bank.  They are offering you a six month loan of $250.00.  You know you can cover the loan when you get paid in 10 days, so you agree.  What did the loan cost you?  Most loan companies would charge you 25% per month in interest, or a 300% APR.  On a $250.00 loan this amounts to $2.05/day interest.  You payoff the loan in 10 days as you planned, so the loan cost you $20.50 in interest plus the title fee of $13.50 the company charged to process your car title.  Given this scenario, you have come out $26.00 better by taking out the car title loan instead of using your overdraft protection at the bank, and you had a little extra money to take your mother a meal from her favorite restaurant. 

At this time, I am going to give those of you reading that have taken the first option of overdraft protection over and over again a chance to gain your composure.  Why did you think that commercial banks love offering Overdraft Protection products?


Most people would think that only the very poor would ever consider a car title loan.  While it is true that most long-time repeat and frequent customers who came into my office made less than $20,000 annually, most one-time and occasional customers made far above the 2014 end of year poverty line of $24,250 for a family of four.  I remember a married couple coming into the office to borrow money against their Jaguar.  Their combined income for the year previous to needing the title loan was almost $220,000!  The company did the loan of course.  I remember the kids coming into the office one time while

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