4 ms·
You are confusing payday lenders (who use the courts and high interest rates to make up for defaults) and loan sharks (who use violence).
by HWR_14 4y ago
You are confusing payday lenders (who use the courts and high interest rates to make up for defaults) and loan sharks (who use violence).
- hedora 4y agoThe FTC begs to differ: https://www.ftc.gov/news-events/topics/consumer-finance/payday-lending https://www.ftc.gov/news-events/topics/consumer-finance/payd... According to them, “abusive collection practices” and dozens of other illegal things are common in that industry.
- HWR_14 4y agoYes, they are common. Any industry that deals with primarily people who cannot afford to defend themselves has similar issues (e.g. slumlords). I have no doubt that they are profitable. My question was "why are they necessary to the business model". Unless you assume "abusive collection practices" means threatening physical violence. Because I would assume it meant things such as chronic calling.