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by johngladtj 1164 days ago
Because the type of people who have no choice but to resort to payday lenders are the same type of people who need men with guns to visit their in their house at 2 am in order to pay back their debts.
1 comments
HWR_14 1164 days 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).
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hedora 1164 days ago
The FTC begs to differ:

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.

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HWR_14 1164 days ago
Yes, 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.

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