He borrowed $100 promising to pay back $120.
He paid $100 in interest, yet still owes more than he borrowed.
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Doesn't that seem kind of predatory? I mean, I get it, free market, interest adds up, extensions taken...
Where I live, those interest rates wouldn't be allowed because the "free market" indeed leads to predatory interest rates. But, when paying late, collection fees add up quickly and can easily make the total amount several times higher than the original loan. I believe most people would be better off without taking high interest short-term loans, and this loan service has destroyed many accounts by now.