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It 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
by stale2002 9y ago
It 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"