Re: Pawn Shops. Are they +EV?
 

How do those payday loan businesses get money from people who have bounced paychecks and stuff? Is it worth the time in small claims court or whatnot?

Re: Pawn Shops. Are they +EV?
 

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How do those payday loan businesses get money from people who have bounced paychecks and stuff? Is it worth the time in small claims court or whatnot?

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Most likely no, and that is EXACTLY why they charge high rates. It gets absorbed into their business as an expense.

Re: Pawn Shops. Are they +EV?
 

I would assume that the capital you lose from bounced paychecks is negligible. Remember, the checks are from the company they work for so in order for it to bounce the company itself would have to bounce the check or the check would have to be fake (which you should easily be able to spot).

Re: Pawn Shops. Are they +EV?
 

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I would assume that the capital you lose from bounced paychecks is negligible. Remember, the checks are from the company they work for so in order for it to bounce the company itself would have to bounce the check or the check would have to be fake (which you should easily be able to spot).

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None of this is true.

Re: Pawn Shops. Are they +EV?
 

Please elaborate.

Re: Pawn Shops. Are they +EV?
 

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I would assume that the capital you lose from bounced paychecks is negligible. Remember, the checks are from the company they work for so in order for it to bounce the company itself would have to bounce the check or the check would have to be fake (which you should easily be able to spot).

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Please elaborate.

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ok sorry for the short reply. The checks aren't from the company they work for. You go in and write them a personal check and they hold it until you get paid. You can always go in and buy the check back but if you don't then they just deposit your personal check.

I am guessing that a very high number of these bounce and that is why the fees are so exorbitant. I am also sure that they make a very healthy profit margin but it isn't a business that I would like to be in. I can't see calling all these deadbeats about bounced checks as being fulfilling.

Re: Pawn Shops. Are they +EV?
 

[ QUOTE ]
[ QUOTE ]
I would assume that the capital you lose from bounced paychecks is negligible. Remember, the checks are from the company they work for so in order for it to bounce the company itself would have to bounce the check or the check would have to be fake (which you should easily be able to spot).

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Please elaborate.

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ok sorry for the short reply. The checks aren't from the company they work for. You go in and write them a personal check and they hold it until you get paid. You can always go in and buy the check back but if you don't then they just deposit your personal check.

I am guessing that a very high number of these bounce and that is why the fees are so exorbitant. I am also sure that they make a very healthy profit margin but it isn't a business that I would like to be in. I can't see calling all these deadbeats about bounced checks as being fulfilling.

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My guess is they don't persue the deadbeats too heavily - they just chalk it up as an expense after a couple of tries and then ban the people from future activity.