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Er, no. NY shut down coinseed, which was definitely ripping people off. Why do we continue to pretend that the "crypto" industry is not absolutely chock full o
by kabdib 5y ago
Er, no. NY shut down coinseed, which was definitely ripping people off.
Why do we continue to pretend that the "crypto" industry is not absolutely chock full of scammers?
- yxwvut 5y agoI've enjoyed watching crypto acolytes gradually learning why the consumer protections of traditional banking and investment exist. Until regulation catches up there's bound to be a stream of unscrupulous scammers taking notes from the financial crises of the past.
- knownjorbist 5y agoYou still have yet to explain why lending in this manner is, or should be, illegal? This isn't payday lending or other forms of predatory lending. The reality is the banks want it this way, not because it was ripped away from them by regulation.
- fullstop 5y agoCrypto is absolutely full of scammers, but head to a poor area and look at all of the payday loan fronts. Let's not pretend that the USD and existing banking industry are shining bastions of righteousness.
- elliekelly 5y ago> Let's not pretend that the USD and existing banking industry are shining bastions of righteousness. They aren’t. Far from it. Now imagine how badly they’d behave without any oversight...
- knownjorbist 5y agoNone of the companies mentioned are even in the same market as the predatory lenders you seem to be confusing them with. I'd wager they want to be subjected to the same oversight as "legitimate"(aka incumbent) players, but as has been shown time and time again, cooperating with the existing regulatory bodies when one is not a part of the club is akin to talking to a brick wall. Why HN wants to carry water for massive incumbent banks and their lackeys in the bureaucracy is beyond me.
- bigbillheck 5y agoI think those payday lenders should be banned as well.
- fullstop 5y agoAbsolutely, but desperate people are desperate and will find even more unscrupulous people who would do more than charge them interest if the loan is not repaid. Understanding why they exist in the first place may be more important than banning them outright.
- toomuchtodo 5y agoWhere do people go if they can’t get a payday loan and need those funds to make ends meet [1]? You have to understand why a fence exists before deciding how and why to tear it down. Payday loans are a symptom, not a root cause and not necessarily evil considering the risk they take on by issuing loans to exceptionally marginal borrowers. [1] https://www.journals.uchicago.edu/doi/10.1086/686033 https://www.journals.uchicago.edu/doi/10.1086/686033
- Hjfrf 5y agoThe borrower can tell their creditors that they will be unable to pay this month's electricity bill/rent/whatever. The creditor will take a loss (writeoff/reschedule) or seize collateral. It's better than having the same issue next month for a larger amount.
- toomuchtodo 5y agoSo is the argument it’s better to have your utilities shut off and be evicted?
- Hjfrf 5y agoYes that's better than having your utilities shut off and being evicted a month later with greater debts. As long as the person doesn't take out loans there's a good chance they can recover with government assistance. There are a consumer protections around necessities for survival for exactly this reason.
- astura 5y agoPayday loans are illegal in New York
- fullstop 5y agoI see them on Google maps, so they must meet some sort of state approval or they are breaking the law.
- TacticalCoder 5y ago> Why do we continue to pretend that the "crypto" industry is not absolutely chock full of scammers? Why do we continue to pretend that the crypto industry is only full of scammers? Is Coinbase the HN unicorn a scam?
- knownjorbist 5y agoCrypto is full of scammers and its hard to tell the difference sometimes! How is this a scam, though?