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Even the payday loan guys aren't that bad, many of their users are people who legit just need emergency cash and will pay it back on their next payday. Freakon

• tamana 11y ago
  A huge portion of payday loans are repeat loans from people trapped in a cycle of debt, taking out loans to pay off interest on previous usurious loans. Yes, payday loans have defait risk, whixh is part of why they are expensive. But that also shows that many borrowers can't acurally afford them. And the cost of defaults is borne by...the next-pooorest people who barely scrape by, who DO lay off their loans, but pay 50-200% APR
  • ultramancool 11y ago
    From what I've heard it seems like about 60% are completely competent loans. It's those other 40% which are roll overs. Note I'm not talking % of customers here but % of loans. Yeah, 40 is still bad, but there a legit demand too. Some have suggested that a governmental or other instution needs to be made just to break people out of the cycle and give them a loan at a rate closer to that of credit cards. It's a tricky situation though from a regulatory perspective because you don't want to have those 60% of people who are avoiding massive overdraft fees or dropping credit scores using these services to get stuck with no options. Personally I think if you sign up for a loan you can't pay, that's on you, not really exploitative as some people seem to propose. Take some personal responsibility, you know?