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The thing is... if you forbid unethical lending, then organized crime fills in the gap. And when you can't pay the mob, they don't take you to court, they take
by jbob2000 8y ago
The thing is... if you forbid unethical lending, then organized crime fills in the gap. And when you can't pay the mob, they don't take you to court, they take your knee caps.
Just like making drugs illegal doesn't make them go away, making unethical lending illegal doesn't make it go away either. To me, this is "harm reduction" of financial services. Yes, it's bad, but not as bad as leaving it on the black market.
- JasonFruit 8y agoBut if it's being done by the mob, the police and the courts are on your side; in this case, the courts are against you, and the police can only shrug and say, "Tough luck.". I'd rather have inarguably predatory lending be on the wrong side of the law, even if it can't be eliminated.
- stale2002 8y agoYou've been watching too many movies. Organized crime is way down, compared to what it was in the past. It just isn't a problem anywhere in America
- tracker1 8y agoBut, you can do things like making arbitration or assumptions of guilt illegal in contracts. Also, limiting effective APR to a reasonable extreme goes a long way too.