So when did Bloomington get into the payday loan business? Recently somehow I missed my monthly payment to the city for city services. I believe I did not get the bill, but it is still my obligation to pay it.
When I got the next month's bill it showed the previous month's balance due plus an additional amount owed due to non-payment from the previous month. At first it looked like a small amount but quick calculation showed it to be a 10 percent penalty for one month's missed payment. I thought it must be a mistake but sure enough on the back side of the bill it states that the penalty for a missed payment is 10 percent each month compounded on the accrued balance.
Seriously? My approximate calculation shows that if one were to let a one month's bill of $75.00 go unpaid for a year one would owe $235.00! What is that 200 percent annual interest? There are laws prohibiting finance companies from ripping off the consumer like that, but it's ok for the government to do it? Shame on them.
This is just another example of the taxpayer not only being subjected to all the obvious taxes and fees but also the more hidden and insidious ones we don't realize until it is too late.
Drew Klein, Bloomington