Is this even legal????

Depends on the State.  In some, that would be classified as "Usery".

 Or, they prey on those who might feel compelled to keep up with the Joneses ( i think I spelled that correctly).  Not far from where I once lived, there was a cash advance store, and it was common to see folks who appeared to be in their late-20s or early 30 getting out of their mercedes or BMWs and waltzing into the place.  The store was located near a stop light so I sometimes found myself observing some of the comings and goings of that place during my wait at the light.  I always asked myself, "Would they need a cash advance if they were driving a civic?"

Reminds me of that commercial... guys got a nice house, sweet ride, member of the country club... "How do I afford it?... I'm in debt up to my eyeballs."

bts

When I was in college, I worked a lot of temp clerical jobs over the summer.  This meant I came in contact with a lot of mail-room delivery, loading dock, and receiving clerks.  Inevitably, at every company, one of these people (who weren't making over 50% above minimum wage) would be driving a pimped-out BMW/MB or SUV.  Each of them was more concerned with having a "sweet ride" than having a decent place to live.

Consider it as the penalty for flunking 6th grade math...

I've never understood that line of thinking.  Sheesh! 

I don't see how they are "preying" on the poor.  If you have it in big print on the front (which they have to now) what the Interest rate is, I don't see the problem.  Last time I checked, the person had to make the choice to go in there. 

If you're dumb enough to take the loan, then pay the price.  That's like saying if I buy my house and then find a lower interest rate...I should be able to cry foul.  I made the deal... good or bad.  Live with the consequences.

It's preying on the poor because these "services" are geared towards people with very few options...rent is due, food needs to be bought, kids need school supplies / clothes, etc. and the paycheck has run out.  These people offer a quick fix, while downplaying the negatives to the deal (yes it's reqiured to be in bold-print, but only because of a slew of laws specifically targeting this industry were passed)...those who take that deal typically have no other options...so it "preys" on thier need to feed/clothe/house themselves/thier families by giving them an awful way out.

As to your second point about letting the "dumb" fail...sure, why don't we take caveat emptor to it's logical extreme...who needs silly laws and ethics to help us protect those less fortunate than us...survival of the fittest, right? Sounds like a hell of a plan.

Oh, and your "lower interest rate" analogy...spot on, man, spot on.  I don't see any differences between your example and payday loans.

You make extremely valid points.  But where I am going with it is this.  When we didn't have money (ie Food stamps, tuna, rice and ramen) growing up; we didn't have cable, cell phone (didn't exsist really), fancy car, brand named food, etc.

If one truly NEEDS these loans to pay for food, school supplies, rent AND they really don't have the money, they can find it because my mom did.  If the pay day loans go to pay for rent, etc, then they shouldn't have a cell phone or the "luxury" items that are taking up the money.  If they are truly bare bones, then I apologize to that 1% and would personally help them out of their situation.

In general, I think that MOST people that fall into this trap make the conscience choice to do it.  Yes, sometimes out of ignorance, but I think that every human has the ability to look at their life and analyze it rationally.  I could be wrong.  But if my mom can raise 2 kids on less than $12K a year, then it can be done.  Just my 2 cents. 

That is why they print all those words in teeny tiny type on the contract.  They are not there for show. 

If someone is grown-up enough to sign the paper, they are grown-up enough to read and understand what they are signing.  If they don't understand, then they shouldn't sign.