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> And then the 1000% APR is argued that it's the actual cost of risk with these loans since they default so often. Isn't that a bit of a self-fulfilling prophe
by Falling3 5y ago
> And then the 1000% APR is argued that it's the actual cost of risk with these loans since they default so often.
Isn't that a bit of a self-fulfilling prophecy?
- gambiting 5y agoI imagine they aren't defaulting because of the interest though - more that the borrower didn't even have the ability to repay the original amount at all.
- Falling3 5y agoSome of them - sure. But anyone who would've been able to repay the loan at a reasonable interest rate is still going to have an extremely difficult time with these APRs.