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I am curious as to what your issue is with the loan setup. Inn my mind out is an alternative to a traditional loan, how is that bad?
by tomjen3 9y ago
I am curious as to what your issue is with the loan setup. Inn my mind out is an alternative to a traditional loan, how is that bad?
- nemild 9y agoIt felt like a modern day scarlet letter, instead of a innovative new way to deliver cheaper loans. There are other techniques to deliver cheaper loans, which don't lead to social ostracism (and which don't violate any social network terms of services).
- stale2002 9y agoIt is bad for the same reason that 100% interest loans are bad. They are predatory on poor people, and they trick people into accepting something when they don't really understand the consequences or "believe" them. A person may incorrectly accept a loan like this, while being under the mistaken assumption that they aren't at risk of the consequences. Sometimes people just make bad decisions. It is really immoral to take advantage of someone like that.
- CookieMon 9y agoSocial connections (social capital?) is also how poor people survive everyday setbacks that others would pay their way out of, a “social stockade” would be debilitating. Debilitating your debtor IMHO seems counterproductive for getting a loan repaid. But is the harm it would cause even an unforeseen coincidence - the guy might have heard some of the studies on how crucial social connections are in poverty and gone "aha! Here's something that truly matters to them, it could be wielded as a cheap big stick in loan repayments"
- sharemywin 9y agobecause your tricking poor investors into thinking the returns would be better. "Most" people that don't pay usually don't pay because they can't pay. And people that don't live up to their obligations and can pay will probably sue you for your predatory lending and cruel loan terms.