Pet Store Loans Through Rent-A-Banks Are A Perfect Storm For Debt
Most people’s debt problems are not the result of consumers wantonly spending beyond their means. Instead, catastrophic debts usually result from medical emergencies, chronic illnesses, the need to support family members who are unable to work, or just the simple fact that everything is expensive and many jobs do not pay well enough to enable workers to afford anything beyond the barest necessities. Any pet owner will tell you that the companionship a pet dog gives you is priceless, but if what you really want is a true friend and not a status symbol, it is possible to adopt a dog very inexpensively. Meanwhile, some people are so smitten with a pair of puppy dog eyes that connect with them through a pet store window that they are willing to take out a loan on the spot, often paying interest rates comparable to those that payday lenders charge. The practice has attracted plenty of criticism, both because it drives up demand for purebred dogs, which are prone to health problems, and because it crosses the line into predatory lending; as of 2022, rent-a-bank loans offered at pet stores are legal in Florida, even though some other states have introduced legislation to ban them. If high interest loans are causing you financial hardship, contact a Boca Raton debt lawyer.
Would You Agree to Payday Loan Interest Rates to Buy an Inbred Dog?
State laws set limits on the interest rates that non-bank lenders can charge for loans. Sometimes non-bank lenders work with banks in order to lend at higher rates, in a practice known as “rent-a-bank loans.” One place where you will find such loans, where the interest rates can exceed 100 percent, is at pet stores, where customers fall in love at first sight with purebred dogs and cats that retail for upwards of a thousand dollars. You might think that you are paying just over a thousand dollars for a pet, but once you factor in interest, you could be paying as much $6,000 by the time you have paid off all the installments.
This is not the only way in which buying a pet that you have to finance with a pet store loan is unaffordable. All purebred dogs are susceptible to certain inherited diseases, although these vary from one breed to another. You will probably have to spend a lot on veterinary care for your animal.
None of this is the animal’s fault, of course. If you are planning to get a pet, the kindest and most financially sound choice is to adopt one from a shelter. If you already bought a pet at a pet store, then you need a debt repayment strategy that will help you deal with the expenses associated with pet ownership.
Contact a South Florida Debt Lawyer About Dealing With High Interest Loans
A South Florida debt lawyer can help you if you are struggling financially because of pet store loans, veterinary bills, or other expenses associated with your pet. Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.