I looked into the loan offer I wrote about. This will shock everyone who responded to that post. It is legal and it wasn't a scam!

Not all States have usury laws, and even the ones that do have exceptions to that law.

The loan firm and bank(who are the same with different names) are located in South Dakota. They have no laws governing the amount of interest a bank can charge.

Prior to 1983(?) the laws were much tighter. But with the recession came changes allowing most banks to charge whatever they want.

I also looked into the cash advance places for comparison purposes and discovered that an APR of well over 300% is standard. It is a more time restricted loan so the comparison should be taken with a grain of salt.

States with tight laws governing interest easily get around things by using lenders from states with looser rules.

This is what I find to be the most interesting piece of information. By law, your neighbor, friend, or relative are the only ones who can't charge heavy interest...and they are probably the ones who need it the most.

****note**** some states still have laws stating that if you were overcharged on interest you are free from paying back that loan***