Chicas and loans

Jeepito · Sep 29, 2014

This thread was inspired after reading an earlier one about the Haitian Sankette. Ever since I've been coming to the DR and getting schooled; just about every chica I've spent any kind of time with have some sort of loan from a bank or a furniture place.

My current one has a loan balance of nearly forty thousand pesos from an electronics and furniture store in the Santiago area. No, I'm not going to pay for it!

I'm already paying indirectly.

My question is, how can someone earning 7500 pesos a month with elderly parents with no earnings be given so much credit with no collateral?

donP · Sep 29, 2014

Collateral

Jeepito said:
My current one has a loan balance of nearly forty thousand pesos from an electronics and furniture store in the Santiago area.
(...)
My question is ...... with no collateral?

Maybe YOU are the collateral..... :classic:

donP

caribmike · Sep 29, 2014

Normal. That is why all these shops can make it...

Xavier_Onassis · Sep 29, 2014

The collateral is that they can repossess the merchandise and sell it again, I think.

The interest that these stores make would cause Vinny and Guido to turn emerald green with envy.

Xavier_Onassis · Sep 29, 2014

The collateral is that they can repossess the merchandise and sell it again, I think.

The interest that these stores make would cause Vinny and Guido to turn emerald green with envy.

shorts · Sep 29, 2014

How could they repossess it if the purchaser sells it to a compra y venta?

caribmike · Sep 29, 2014

Hey, are you related to "Ray Muebles"??? :bunny::bunny:

RAAAY said:
.

.
You've obviously never witnessed the "collection agency" coming to repossess the items. It is quiet the spectacle. Think Seal Team 6 without the uniforms. Also, the non paying offender can be locked up and will typically be released only when the debt has been settled in full, along with the costs of sending out the "collectors".........!!!

.

Xavier_Onassis · Sep 29, 2014

That would pose a problem.
Most women would probably not sell a needed item they have grown attached to.
It is possible that such stores might have some arrangement with compra ventas and even trucking companies to devise a strategy of some sort to avoid a loss. In a big city, this would be difficult, but in a smaller town it might work.

I am sure they have to eat some of their profits from time to time.

My estimate of the cost of a cheap TV to be paid off in abonos over three years was be around 250% of the usual retail price. That could be 500% of the cost to the store, that bought it wholesale.

Furniture has a HUGE markup.

Xavier_Onassis · Sep 29, 2014

That would pose a problem.
Most women would probably not sell a needed item they have grown attached to.
It is possible that such stores might have some arrangement with compra ventas and even trucking companies to devise a strategy of some sort to avoid a loss. In a big city, this would be difficult, but in a smaller town it might work.

I am sure they have to eat some of their profits from time to time.

My estimate of the cost of a cheap TV to be paid off in abonos over three years was be around 250% of the usual retail price. That could be 500% of the cost to the store, that bought it wholesale.

Furniture has a HUGE markup.

Mauricio · Sep 29, 2014

Xavier_Onassis said:
The collateral is that they can repossess the merchandise and sell it again, I think.

The interest that these stores make would cause Vinny and Guido to turn emerald green with envy.

It's virtually always a bank that gives the loan, not the store. If you can't pay they will first get an agreement with your employer and take the money from your salary and secondly get the furniture back.

What I found weird is that in Ilumel I bought a bed two weeks ago. I took a loan for it because they wouldn't give a discount if I pay in cash and they are not charging any interest. I don't get that. I saw on internet banking that the installments that I now have to pay actually have an interest part (but the sum of the installments adds up to the total price of the bed).

I could see the bank charged first my account for the full amount which was send to Ilumel, and then deposited the same amount back on my account and a loan appeared for that amount. I'm not sure now who is paying the interest (of course in the end it's me, but if I would have paid cash, I would have paid for a loan I didn't take).

The only thing I can think is that the bank is betting on me paying late so they can charge 20% per year.

Xavier_Onassis · Sep 29, 2014

The only thing I can think is that the bank is betting on me paying late so they can charge 20% per year.

======================================================
Statistically, this could be true, and if so, would be the motivation. It is pretty certain that the bank has the statistics on this.

Cashback on a credit card is an incentive that is quite often completely erased by a $35 late fee plus interest on payments make only a day or two late.

Expat13 · Sep 29, 2014

Its really sad how some of these businesses almost pray on the poor. I heard of at least a couple occasions where "Prestige Cookware" sales reps door knock the poor and sell the magic of their top of the line product(top of the line prices too) to housewifes. When they hear "no tengo dinero" they have the answer, just finance it over the next 10 years. These sales deals of pots and pans average around 60-100,000 dop. Its crazy! The wife uses the pots to make dinner and before the hubby even hears about it, they are non-returnable. Next thing the family is stressed making these payments for a lifetime but have the same cookware as the wealthy!

Xavier_Onassis · Sep 29, 2014

Anything anyone tries to sell you door to door (other than perhaps fruit or veggies) is bound to be wildly overpriced. The same is true of sales via telephone. Anything sold on a payment plan is also way overpriced.

Any item "not available in stores" IS available on Ebay, and perhaps craigslist, and cheaper, at least in the US.

jstarebel · Sep 29, 2014

Jeepito said:
This thread was inspired after reading an earlier one about the Haitian Sankette. Ever since I've been coming to the DR and getting schooled; just about every chica I've spent any kind of time with have some sort of loan from a bank or a furniture place.

My current one has a loan balance of nearly forty thousand pesos from an electronics and furniture store in the Santiago area. No, I'm not going to pay for it! I'm already paying indirectly.

My question is, how can someone earning 7500 pesos a month with elderly parents with no earnings be given so much credit with no collateral?

I met my Dominican wife on Providenciales TCI. She was working with Turtle Cove Divers. She moved in with me roughly three months after going out together. She lost her job just after moving in, and I found out the hard way that she had loans from a furniture store for her fathers house. Not wanting to get involved with ANYBODY's personal business, I tried to stay out of it. Not my problem.. Yeah RIGHT.. It became my problem when she told me (I believe truthfully) that Maximo (local Bank or Barrio loanshark) held the loan and her fathers house was what was used as collateral. After getting to know more about this, I found that many people in the DR actually loose their homes this way. The banks allow them to continue to live there, but basically OWN these families homes and have them under their thumbs till the end of time. I can just imagine the interest rising every single day and being held over these peoples heads. Maximo is the only local banker I know, and this guy is a P.O.S. in my humble opinion.

Xavier_Onassis · Sep 29, 2014

The Dominican economy is rather like a dancehall in which many are bunnies but a few are hyenas. In a country with a small rich class and where most people are poor, this sort of thing is common. There are probably hundreds of M?ximos around.
In the US we have the predatory check cashing and small loan shops where interest can easily be over 50% if you figure in the fees and such.

mofongoloco · Sep 29, 2014

RAAAY said:
.

.
You've obviously never witnessed the "collection agency" coming to repossess the items. It is quiet the spectacle. Think Seal Team 6 without the uniforms. Also, the non paying offender can be locked up and will typically be released only when the debt has been settled in full, along with the costs of sending out the "collectors".........!!!

.

No way. Debtors prison? Really?

Hferreiras · Sep 29, 2014

They should implement more in DR the rent to own term more often, instead of selling.

Sent from my iPhone using Tapatalk

Xavier_Onassis · Sep 29, 2014

If lenders can hire hit squads and repossess people's homes, that is probably all that is needed. Rent to own makes repossessions under US state laws easier.

CristoRey · Sep 29, 2014

Jeepito said:
This thread was inspired after reading an earlier one about the Haitian Sankette. Ever since I've been coming to the DR and getting schooled; just about every chica I've spent any kind of time with have some sort of loan from a bank or a furniture place.

My current one has a loan balance of nearly forty thousand pesos from an electronics and furniture store in the Santiago area. No, I'm not going to pay for it! I'm already paying indirectly.

My question is, how can someone earning 7500 pesos a month with elderly parents with no earnings be given so much credit with no collateral?

She probably has several different men in her life "helping" her when needed. Although I'm sure its a two-way
street. Its been my experience while living here... Where there's smoke there's always fire.

Jeepito · Sep 29, 2014

now, it all makes sense. There must also be a good market for used furniture and old TV sets.

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