This week I received a direct mail card from a national cash advance company. Everyone in my neighborhood, maybe even in my town, received it. It was addressed to “Current Resident”. (You may have received one, too.)

The mailer has two side-by-side photos. The first is of a black child in a doctor’s office. The doctor is checking the child’s throat with a tongue depressor. The text above this photo reads, “Needs a prescription.”

The photo beside it is a shot taken in a pharmacy. The pharmacist stands with his arms crossed in front of shelves filled with medications. The text above this second photo reads, “Not covered by your insurance.”

On the reverse side of the mailer is an invitation to “come in today and you can get up to $350 on the spot.” This flyer is from national cash advance chain which has a new office in my town.

The chain is owned by Advance America Cash Advance (AEA on the NYSE), a public corporation. It’s a large, international company. The investor relations information on the Advance America website reports “payday cash advances are small-denomination, unsecured advances that are typically due on the customers next payday.”

So how does a public corporation make money mailing payday loan junk mail?

The parent company, Advance America Cash Advance, offers a “How Much Is a Cash Advance?” calculator on their web site that makes it pretty clear. Simply choose your state, choose a loan amount from the drop down list, and you have your eyes opened.

In Louisiana, the online calculator indicates if someone borrows $100 and pays the $20 Fee (Assuming a 14-day term) the APR is 521.43%.

Who borrows at 521% APR? People who are desperate.

And the mailer I received appeals to desperation. People will do things for their children they wouldn’t do for themselves … like buy medications at 521.43% APR.