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[Music]
Well, if you're a business owner or know
someone who is, it's no secret that it
takes money to make money.
>> But how you get it could leave you
caught in a trap, especially if you're
forced to tap into a shady cash advance
company. Imagine you're running a small
business. You borrow some money. You're
paying it back. Maybe you've fallen
behind. Maybe you haven't. And then one
day, out of the blue, you can't get any
of your money out of the bank.
>> Predatory lending always pops up at the
most inopportune moments. It's
sickening.
>> One in 20 households have taken one out
at some point. It's a $9 billion
industry. There are more payday loan
stores in America than Starbucks and
McDonald's. Your accounts are locked up.
They've been seized without any notice
to you.
>> Every day we were getting our bank
account hit every single day. Well, it
got to the point where it was nothing
there and it was going negative. I mean,
if you charge somebody, you know, 400%
interest rate, I mean, that's that's
greed, right?
>> These guys call businesses across the
country and they're offering quick
money. They say that they can get you 50
100 grand overnight. The loans are very
expensive with interest rates as high as
300 or 500% annualized, 20 times as much
as you'd pay on a credit card.
>> Charging skyhigh interest rates up to
400% on loans to small companies.
>> Often it's 300 or 400 percentage points
on an annual basis.
>> Average annual rates of 570%.
Some of those rates legally are as high
as 1,900%
a year. you know, freezing bank
accounts, filing leans on your homes.
>> A confession of judgment is something
that the borrower signs as a condition
of getting the loan. It basically means
they give up their right to be heard in
court. Even if confessions of judgment
go away, there are all kinds of other
abusive practices in the cash advance
industry. So, you're probably going to
be hearing more about this industry for
years to come.
>> No one allows that in history. Even if
you have the permission from the
government, even if you have the
permission from your local rabbi in
shamine, you do not have permission.
What? It's immoral. It's not right. It's
a bad product and you would not want to
buy it. If you wouldn't be a customer,
don't sell it. If the commissions are
really high, usually that's a problem.
Nobody likes to pay high commissions for
good products. Good products sell
themselves. If you see a specific group
of people focus and all of a sudden
there's new businesses selling the same
product popping up like like uh like
mushrooms everywhere. All of a sudden
everybody's in the cash advance
business. All of a sudden everybody's in
the insurance business insuring uh
washing machines. Why? It's a scam.
Eventually the dean of Shamay will come
upon a person and those people are
guaranteed to lose all of their money.
You see if you look at the history of
all of those people that had these
finagling type of things eventually they
ended up losing everything. Don't be
part of that system. Eventually, a
kadosh shows you whose boss you see some
people go to jail, some people die
early, some people see their kids die,
all types of lawsuits, gambling, all
types of issues. It's going to be a
major massacre of disaster in that
industry. You'll see one after another,
every one of them going, "Why?" Cuz
eventually, Kadoshu is going to close
the shop. Why? It's happened before. It
happened in England 900 years ago. It
happened in Germany 70 years ago. It
happened many times. And usually those
people that are in those corrupt
businesses that are taking advantage of
some type of industry loophole either
there's no compliance in the industry,
there's no regulation in the industry,
there's no watchdog in the industry,
there's just a lot of stupid people in
the industry and all types of things.
Usually a kadosbu says, "Oh, they may
not be watching, but I'm watching." Some
of the people that have been the most
successful in history weren't criminals
like those people. They did business
hard way, but the honest way, and they
got far. No pose in the world, real pose
in the world will allow people to be in
the cash advance business. Not because
they're lending to goim, but because of
what they charge. What they charge makes
their business illegal according to the
Torah. Anybody surely they're not
allowed to lend the money to Jews, but
they do because no application is
allowed to ask somebody, hey, uh, Steve,
are you Jewish? You can't ask. You don't
know who you're lending to. You could be
lending even to a fru. Then you lost
your alarm with that one lend. You lend
to a thousand people. One guy is a Jew,
you have no lava. One guy is a Jew, you
let to 10,000 people. 10,000 people you
have you're you're a big uh sadik in in
the business. Everybody wants to borrow
money from you. One guy's a Jew, you go
to Gome forever. Only a and will
permit such a business doesn't exist.
Who gave you the permission to charge
40%, 50%, 80%. What proc in the world
allowed you to charge predatory rates?
Go borrow $10,000 with 40% interest. See
what happens. You go bankrupt.