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Chicago Needs Loan Sharks to Protect Citizens from City Government

This article posted by WBEZ news in Chicago illustrates how the city government is worse than criminals when it comes to financially exploiting people.

The city imposed strict ordinances to add more fees and more automated speed camera; the city then let tow truck companies loose on violators. How do you think Chicago city officials would respond to a private company doing similar things in a business context in Chicago without city backing?

The article shows an example of how $360 in civil violations increases to $820 in just one day and becomes $1595 in 21 days.  Plus, you will lose your vehicle after 21 days. Keep in mind that the proceeds of the vehicle sale just go to the city and are NOT applied to fines, the auto loan, or anything else except the city treasury. Typically, the towing companies buy the cars for a very low "scrap" price that is well below market value. This compounds the evil by taking what could be city money gotten by evil means and putting it in the hands of tow truck operators. These city ordinances are a real boon to tow truck operators. Maybe they paid for these ordinances though campaign donations or more direct means? It would be hard to explain why city officials weren't collecting the full value of the vehicles for the benefit of the city otherwise.

The day the original fines are due is considered day 1. Keep in mind that these are all civil penalties and violations - not criminal violations.

If a citizen went to an evil criminal loan shark charging an outrageous 20% per week interest rate compounded weekly, at day 8 the $360 debt would be $360 + $72 = $432.

Here are the computations for the following weeks:

Day 15: $432 + $87 interest rounded up to next dollar = $519

Day 22: $519 + $104 interest rounded up to next dollar = $623


To recap:

For Days 2, 8, 15, and 22, here is what City Government charges compared to Loan Sharks:

City Government: $820, $1500, $1595 + Vehicle
Loan Shark: $432, $519, $623

City Government in Chicago is worse than criminals engaged in loan sharking! The city government is more abusive to city residents than organized crime. City officials would be doing a public service by allowing criminal loan sharks to operate openly to loan people in these situations money!

Keep this in mind the next time some government official or public spirited puritan condemns the evil of Pay Day Lenders and other so-called usurers when outlawing Pay Day loans and other allegedly abusive lending practices. These lenders are considerably better than criminal loan sharks and the loan sharks are better than the city government of Chicago.

In the 18th Century, Americans would probably have fought a revolutionary war over this kind of abuse. It's no surprise that Illinois is losing population to other states.

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