3 ms·

These are pretty small amounts. I suspecdt they make more money on the overdraft fees, which puts it in the "not merely lazy or incompetent, but evil" category

by owyn 11y ago

These are pretty small amounts. I suspecdt they make more money on the overdraft fees, which puts it in the "not merely lazy or incompetent, but evil" category for me. Payday loan companies are the worst offenders in this category, I'd love to see an "uber" for that.

daeken 11y ago
> Payday loan companies are the worst offenders in this category, I'd love to see an "uber" for that. Me too, but it's very unlikely to happen. Payday loans (according to http://thehill.com/regulation/237538-borrowers-default-on-nearly-half-of-all-payday-loans-in-2-years-study-finds http://thehill.com/regulation/237538-borrowers-default-on-ne... and the study linked there) have a default rate of about 46% in the first two years, making them risky plays; to compensate for that, they have to increase interest rates and fees, which is a huge part of what makes them evil in the first place. Of course, the fact that 80% of payday loans are due to loan churn itself (paying off a payday loan with another) contributes to that in a big way, so maybe it could be done somehow. I'd be interested in seeing a saner way of handling payday loans than exists right now, but I'm skeptical that it could be done in a way that isn't -- in some way -- predatory.
- kwikiel 11y ago
  That's my vision and not only mine [3] - i've wrote about this [1] Building the credit lines economy from the ground up on social networks based in trust. Each user is assigns trust level to another users and sum of trust is calculated with decentralized algorithm [1] [1] http://earlbarr.com/publications/trustdavis.pdf http://earlbarr.com/publications/trustdavis.pdf [2] https://medium.com/@kacperwikiel/social-lending-alternative-approach-e835a290f760#.tqiegdptz https://medium.com/@kacperwikiel/social-lending-alternative-... [3] https://www.youtube.com/watch?v=kTqgiF4HmgQ https://www.youtube.com/watch?v=kTqgiF4HmgQ [4] http://rachelbotsman.com/work/collaborative-finance-by-the-people-for-the-people-collaborativeconsumption-com/ http://rachelbotsman.com/work/collaborative-finance-by-the-p... [5] Landing page for this project: https://getline.in/p/landing https://getline.in/p/landing Edit: I am giving 10% of service revenue to users as a basic income prototype. Edit 2: maximum depth reached.
- jacobush 11y ago
  Why can't I reply to kwikiel?

by owyn 11y ago

daeken 11y ago

> Payday loan companies are the worst offenders in this category, I'd love to see an "uber" for that. Me too, but it's very unlikely to happen. Payday loans (according to http://thehill.com/regulation/237538-borrowers-default-on-nearly-half-of-all-payday-loans-in-2-years-study-finds http://thehill.com/regulation/237538-borrowers-default-on-ne... and the study linked there) have a default rate of about 46% in the first two years, making them risky plays; to compensate for that, they have to increase interest rates and fees, which is a huge part of what makes them evil in the first place. Of course, the fact that 80% of payday loans are due to loan churn itself (paying off a payday loan with another) contributes to that in a big way, so maybe it could be done somehow. I'd be interested in seeing a saner way of handling payday loans than exists right now, but I'm skeptical that it could be done in a way that isn't -- in some way -- predatory.

kwikiel 11y ago
That's my vision and not only mine [3] - i've wrote about this [1] Building the credit lines economy from the ground up on social networks based in trust. Each user is assigns trust level to another users and sum of trust is calculated with decentralized algorithm [1] [1] http://earlbarr.com/publications/trustdavis.pdf http://earlbarr.com/publications/trustdavis.pdf [2] https://medium.com/@kacperwikiel/social-lending-alternative-approach-e835a290f760#.tqiegdptz https://medium.com/@kacperwikiel/social-lending-alternative-... [3] https://www.youtube.com/watch?v=kTqgiF4HmgQ https://www.youtube.com/watch?v=kTqgiF4HmgQ [4] http://rachelbotsman.com/work/collaborative-finance-by-the-people-for-the-people-collaborativeconsumption-com/ http://rachelbotsman.com/work/collaborative-finance-by-the-p... [5] Landing page for this project: https://getline.in/p/landing https://getline.in/p/landing Edit: I am giving 10% of service revenue to users as a basic income prototype. Edit 2: maximum depth reached.
jacobush 11y ago
Why can't I reply to kwikiel?