[mrhappyunhappy]

Except in your example the actual situation would play out like this: person borrows $80, thinks his payment is $20, makes a payment. Next paycheck he sees a withdrawal for $45. Wondering why he brushes it asides figuring only $53 left to pay. Another $45 comes out - ok $8 left all is good. Then sees another $45 come out and panic sets in. Borrower makes a phone call to see what’s going on and why he is overcharged. The asshole on the other end of the line rudely explains that ZERO payments have been made in the principle of the balance. The fees were loan renewal fees. And the $80 balance remains. If borrower is lucky he can pay it off in full plus the $18. Of course the borrower could have the full some but not likely seeing how they had to borrow $80. So you get this vicious cycle of loan renewal fees which we might as well call them what they are - a scam. How anyone can support this practice is beyond me. I can only conclude the person who thinks this is ok works in a morally ambiguous industry and has to justify their own behavior.

[hoaw]

It is supported because it is accepted, especially in places like hacker news, to not be scientifically literate. In fact it is so obviously problematic that you would to a large degree have to be obnoxious to support it without reserve. Which is why you see all these rhetorical arguments, sarcasm and hostile engagements in this thread. Of course from a reasoned perspective this would indicate that you were wrong. But if you have already realized that they aren't going to win with arguments, it is instead seen a good thing that the discussion isn't about that.

[towelr34dy]

Scientific literacy = using a grossly disproportionate made up example?

Got it. Or do you mean spelling out what a debt trap is? Is that 'scientific literacy'.

The arrogance of those who want to restrict others is so obvious: You think people are incapable of taking care of themselves. Then you think yourself capable of knowing whats best for them. While simultaneously talking about science. And disregarding people who actually were poor and went through those things. And ignoring the points being made, without giving counter points.

You didn't answer what happens when you remove this lender of last resort? I thought a 'scientifically' minded person such as yourself would be interested in digging for the truth.