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Comment by johnloeber | Hacker News Reader

Not to distract from the content of the piece, but she took a 300% loan? THREE HUNDRED PERCENT? Could she have gotten a better loan? I'm under the impression that most banks offer loans at more reasonable rates.

Also, how is Yelp able to retain salespeople in the Bay Area if they pay only $2k/month? The salary is clearly under the cost of living.

On topic: please don't let all the particularities of this case distract you. The fundamental issue is that she was fired over a short absence due to a serious family emergency, all while ostensibly performing well at her job. That's not acceptable.

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Maybe it's $2k basic before commission (as sales salaries are often largely composed of commission), and that fact wasn't disclosed in this post?

So, she was selling $19k worth of stuff, and claimed she was doing a good job (let's assume she's correct). Her income was $2k.

So that means ~10% of Yelp's revenue is going to salespeople. Is that normal? Do salespeople normally take 10% of every sale?

I meant her alleged base income was $2k _before_ commission.

Perhaps she means 130%, which is already insanely high? I can't imagine even a loan shark practising 300%.

Some title loans (automobile) charge 10% per week, which if left unpaid, will amount to 520% per annum. Hence why payday loan stores compete for every corner in impoverished areas.

Wow, I checked it out, I didn't realize it but payday loans can be up to 400%: http://www.consumerfinance.gov/askcfpb/1567/what-payday-loan...

Brutal.

In the UK, Wonga.com charges 1500% interest on payday loans. If you take it for longer than few days you are insane

https://wonga.com/

In the UK payday loan interest rates are listed in terms of APR (anualised interest) because regulations stipulate it. A payday loan is a short term loan so the effective interest rate is lower. Still high - that's how the time value of money works, try getting a short term bridging loan from a retail bank (actually almost impossible, hence Wonga et al) - but not 1000%. Always provided that you pay it back on time, of course. It's true that taking one out without the ability or intent to pay it back within the window is irrational but people in dire straits are often subject to hyperbolic discounting effects.

There is a lifetime of bad choices there, why be surprised at that one?

"please don't let all the particularities of this case distract you."

The bulk of your comment was about a loan she took out and a low salary!

Payday type loan at 300% APR maybe? Though generally you have to pay those back within a week or so afaik, so you don't actually pay 300%

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