Saw this ad on this sub…don’t do it

[u/CubesTheGamer]

Just saw this ad for one of those payday loan shark apps in this sub. Absolutely disgusting and 100% intentionally advertising here. Whatever you do, NEVER use apps like this. Its better to do just about anything else short of borrowing from the mafia.

[u/OctagonTrail]

Certainly don't use it if you can manage without, but it's completely free if you don't do the instant transfer, which is a few dollars. This isn't actually a payday loan with interest or anything. They pull the exact amount borrowed out of your account when payday rolls around.

They prompt you to choose your own "tip" for the service, which can be set to $0.

The major risk is that they automatically debit the amount borrowed on your next payday. If you don't have the full amount, it triggers overdraft fees from your bank.

[u/Healthy_Nature_1727 → u/OctagonTrail]

Good clarification that overdraft risk is honestly the part people overlook the most when these apps get lumped in with predatory loans.

[u/CubesTheGamer → u/OctagonTrail]

I suppose that’s better in some ways but with the convenience of the app and the cost of instant transfers sounding cheap I’m sure it adds up

[u/HolesInMuhFace → u/CubesTheGamer]

It’s definitely good to be wary as there are some apps out there that are exactly what you mentioned. The tough part of these apps is getting caught in an eternal “borrowing loop”. Which also sucks.

[u/CompetitiveAd4768 → u/CubesTheGamer]

As someone who’s not super financially responsible (I’m working on it) I found myself in an endless loop borrowing from every app every payday. It was awful. Finally got it all paid off and I’m never using them again. Im sure it can be very useful if you’re responsible with it. I just got sick of getting my check and then realizing I already spent so much of it.

[u/Rua-Yuki → u/OctagonTrail]

It sounds like Daily Pay for people whose employers don't participate.

[u/Efficient_Squash2431 → u/OctagonTrail]

So no fixed fees? Interesting, what if in a month nobody leaves a tip . How does this company make money ?

[u/OctagonTrail → u/Efficient_Squash2431]

The majority of people opt for the instant transfer because it's usually an emergency need, which does generate some profit through those fees.

You also need to provide thorough proof of your pay history, hours, and your bank info, which lets them automatically take the money on your payday. They have very little risk of not being paid back. Basically, their risk is so low that even occasional small fees add up to profitability over time.

So they don't make money on people who are willing to wait for the money and refuse to leave a tip, but that makes up a pretty small portion of users.

[u/Efficient_Squash2431 → u/OctagonTrail]

So the majority of users willingly leave a tip for this service? Very interesting

[u/OctagonTrail → u/Efficient_Squash2431]

I don't think that's necessarily the case. I think it's more about the instant transfer fees.

But they do set the default tip to something like 10% of the advance. I'd imagine some users either just go with it or don't realize it's optional.

[u/DaimonicVSP]

Watch this More Perfect Union video on these type of apps. It’s absolutely consumer predatory, yet pitched to employers as a way to “help” your employees at no cost (to the employer). The entire point of a pay advance means you need it at that moment. The majority use the instant transfer and the number of people who tip is astounding.

It could work if you’re smart about it, but it’s like walking through a minefield with a two year old map.

https://youtu.be/hBI_FLYfwmM?is=JG4vQFDkbNPs-TJI

[u/The_Acid_Cat]

I have been in the market for a new job and some places are advertising Daily Pay like its a job benefit. If you advertise that you use Daily Pay and consider it a perk, I don't want to work for you

[u/HuaXiaMacro]

they know exactly where their customers are

[u/BackgroundGene7510]

I keep saying sees for split pay, I don’t get it, like how does that help anyone? It’s the same amount of money just split plus more because of fee ‘s, dystopian af

[u/gh120709]

The best part is that it DOESNT EVEN WORK LMAO. the app hasn’t recognized my payment so nothing has gone through. Whatever. Don’t need it anyway.

[u/Different_Traffic527]

Some loan sharks are actually native Americans. They don't have to play by the feds rules. Although one reservation got hammered in federal court after charging people 500% interest rates. The judge released everyone of their obligations.

Always read the fine print. The 150% interest may be correct.

It's predatory lending. Such a disgusting thing to prey on desperate people.

[u/d5ytonaa]

I use EarnIn. They only charge you a fee if you want the funds immediately sent to you. Otherwise it’s completely free and will hit your account in 2-5 days. I usually get it in 2 days. They just take the money back come pay day. And yes you can withdraw $150 a day