First - I don't know anything about Wonga, nor do I think that vulnerable people being forced into needing a loan at enormously high interest rates is somehow a

First - I don't know anything about Wonga, nor do I think that vulnerable people being forced into needing a loan at enormously high interest rates is somehow a good thing for society. However, as I read the comments here simply condemning payday loans without further explanation, I find myself wondering whether anyone has a better suggestion? A 4000% interest loan might seem like a terrible deal, but simply being evicted, or not being repair a vehicle essential for work could far more costly. If happens occasionally and it really is paid back at payday, I can see it being a lifeline. The article suggests that the interest rate is basically directly related to the default rate, and that ML is enabling better credit assessments, and thus lowering the default rate and interest rates correspondingly. The fact that there are now competitors in the market should keep pressure on this. It sounds to me that the ML experts are contributing to making loans available more cheaply to those who need them and can pay them back, potentially helping people who have a job not to fall into even worse poverty. Again, I think that the poverty trap is an abhorrent thing for society, but it sounds as though ML experts are making the payday loan industry less harmful. Am I missing something?