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> I see no reason one couldn't open their own competitor with slightly lower rates You would have a very difficult time attracting customers. Ignoring the fac
by otakucode 12y ago
> I see no reason one couldn't open their own competitor with slightly lower rates
You would have a very difficult time attracting customers. Ignoring the fact that much of the payday loan industry is run by organized crime and you would likely end up with a bullet in the back of your head, even if it were totally safe you would get very little advantage from offering a lower interest rate. Studies have shown that people in economic trouble are not capable of making wise choices. It's commonly referred to as 'decision fatigue'.
- jkaunisv1 12y agoI have no knowledge of who runs the industry, but assuming it's perfectly safe - I'm not looking for an advantage. I'm talking about a social enterprise that disguises itself as a sleazy payday loan place, same kind of branding and everything but with more favourable terms for the customer. I'm guessing geographical location is the biggest factor in influencing their 'choice' of payday loan shop to use, so it would be a matter of taking advantage of that decision fatigue to help them without them realizing it.