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I have watched an interesting documentary on Scott Tucker that is currently serving time in prison for collecting $1.3 billion in illegal interest payments as s

by avgDev 8y ago

I have watched an interesting documentary on Scott Tucker that is currently serving time in prison for collecting $1.3 billion in illegal interest payments as some people paid a total of almost $1,000 to settle a $300 loan. He was an owner of a quick loan company. The guy and his wife felt they were wrongfully stripped of their wealth. They did not feel bad for people who struggled to survive, and felt 0 remorse. I recommend reading about this or finding the documentary as I can't recall the name at the moment. These loans should be strictly regulated. They are preying on people who may lack basic understanding of loans or a barely scraping by. These companies use very aggressive tactics when trying to recover the money + interest. These loans are a cancer to a society. As it pushes people very close to an edge.

JumpCrisscross 8y ago
> These loans are a cancer to a society Subprime loans should be strictly regulated to (a) ensure the borrower understands what they're getting into ex ante and (b) minimize systemic effects. But they're also a symptom of American poverty. There are people who, strictly speaking, are better off for having taken a subprime loan. (Classic example: truck they need for work breaks down and they have no rainy day fund.) Banning the loans won't fix the underlying problem.
- frgtpsswrdlame 8y ago
  >minimize systemic effects Those three words seem to be doing a lot of work. How would you minimize systemic effects? What systemic effects even need to be minimized?
  - JumpCrisscross 8y ago
    > How would you minimize systemic effects? What systemic effects even need to be minimized? Subprime loans have higher default rates than prime loans. You want to make sure the lender can bear that risk. (Subprime mortgages getting into places they shouldn't have been was a proximate cause of the financial crisis.)
- deleted 8y ago
  [deleted]
- avgDev 8y ago
  They are definitely a symptom of a much bigger problem, but I don't see how there can be any improvements in the current state of US politics. We have skyrocketing medical cost, high student debt, we are constantly seeing a pro business approach when it comes to laws/taxes, which does hurt the middle class.
  - JumpCrisscross 8y ago
    > I don't see how there can be any improvements in the current state of US politics Fortunately, poverty doesn't take national co-ordination to solve. Cities and states can do a lot to eliminate poverty within their borders.
    - s73v3r_ 8y ago
      I thought the biggest issue with these loans is that they're all from companies based in South Dakota and Delaware and other states which have gutted their consumer protection laws, and so other states can't do anything about it?
      - JumpCrisscross 8y ago
        > other states can't do anything about it I'm a New Yorker. If a South Dakota company markets a loan to me, they're in New York's jurisdiction. The contract may specify Delaware law. But I think states can write consumer protections to override such clauses.
- kevin_b_er 8y ago
  We tried. Such regulations are being destroyed: https://www.nytimes.com/2018/02/02/us/politics/payday-lenders-lobbying-regulations.html https://www.nytimes.com/2018/02/02/us/politics/payday-lender...
jarsin 8y ago
> I recommend reading about this or finding the documentary as I can't recall the name at the moment. It's Dirty Money on Netflix episode 2 or 3. What set me off about him is it wasn't just the loans, but he had in the fine print that if you did not login and click some button within thirty days of your loan automatically renewed. So people that paid it off really didn't because they never pushed the button. Ton's of rich people suffer from delusional narcissism and the reason is most cheat to get there then delude themselves into thinking they are special.
- sharemywin 8y ago
  Here's an article about just that when people play a rigged game of monopoly. https://planetsave.com/2013/12/23/a-rigged-game-of-monopoly-reveals-how-feeling-wealthy-changes-our-behavior-ted-video/ https://planetsave.com/2013/12/23/a-rigged-game-of-monopoly-...

by avgDev 8y ago

JumpCrisscross 8y ago

> These loans are a cancer to a society Subprime loans should be strictly regulated to (a) ensure the borrower understands what they're getting into ex ante and (b) minimize systemic effects. But they're also a symptom of American poverty. There are people who, strictly speaking, are better off for having taken a subprime loan. (Classic example: truck they need for work breaks down and they have no rainy day fund.) Banning the loans won't fix the underlying problem.

frgtpsswrdlame 8y ago
>minimize systemic effects Those three words seem to be doing a lot of work. How would you minimize systemic effects? What systemic effects even need to be minimized?
- JumpCrisscross 8y ago
  > How would you minimize systemic effects? What systemic effects even need to be minimized? Subprime loans have higher default rates than prime loans. You want to make sure the lender can bear that risk. (Subprime mortgages getting into places they shouldn't have been was a proximate cause of the financial crisis.)
deleted 8y ago
[deleted]
avgDev 8y ago
They are definitely a symptom of a much bigger problem, but I don't see how there can be any improvements in the current state of US politics. We have skyrocketing medical cost, high student debt, we are constantly seeing a pro business approach when it comes to laws/taxes, which does hurt the middle class.
- JumpCrisscross 8y ago
  > I don't see how there can be any improvements in the current state of US politics Fortunately, poverty doesn't take national co-ordination to solve. Cities and states can do a lot to eliminate poverty within their borders.
  - s73v3r_ 8y ago
    I thought the biggest issue with these loans is that they're all from companies based in South Dakota and Delaware and other states which have gutted their consumer protection laws, and so other states can't do anything about it?
    - JumpCrisscross 8y ago
      > other states can't do anything about it I'm a New Yorker. If a South Dakota company markets a loan to me, they're in New York's jurisdiction. The contract may specify Delaware law. But I think states can write consumer protections to override such clauses.
kevin_b_er 8y ago
We tried. Such regulations are being destroyed: https://www.nytimes.com/2018/02/02/us/politics/payday-lenders-lobbying-regulations.html https://www.nytimes.com/2018/02/02/us/politics/payday-lender...

jarsin 8y ago

> I recommend reading about this or finding the documentary as I can't recall the name at the moment. It's Dirty Money on Netflix episode 2 or 3. What set me off about him is it wasn't just the loans, but he had in the fine print that if you did not login and click some button within thirty days of your loan automatically renewed. So people that paid it off really didn't because they never pushed the button. Ton's of rich people suffer from delusional narcissism and the reason is most cheat to get there then delude themselves into thinking they are special.

sharemywin 8y ago
Here's an article about just that when people play a rigged game of monopoly. https://planetsave.com/2013/12/23/a-rigged-game-of-monopoly-reveals-how-feeling-wealthy-changes-our-behavior-ted-video/ https://planetsave.com/2013/12/23/a-rigged-game-of-monopoly-...