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.
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.