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Poverty is big business

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    Poverty is big business

    https://newrepublic.com/article/1552...=pocket-newtab

    I came across this and was just shaking my head. This is clearly one of the MANY examples of places making good money off those who can least afford it. Yet in all the discussion i have seen or read No one addresses the elephant in the room "that these companies are not your friend and want your only to suck you dry"

    #2
    Here is a quote from the article:

    The real question, of course, isnít whether a credit card with a 27 percent interest rate and a $39 late fee is better than a payday loan. Itís whether Capital Oneís marketing campaigns push people into debt who would have otherwise avoided it; whether it is actually in a personís best interest, desperate though they may be, to borrow money at an exorbitant rate; and whether this enterprise is ethically defensibleóin particular, for the decent, hard-working employees who toil every day to make Capital Oneís mercenary strategy a reality. Because the ugly truth is that subprime credit is all about profiting from other peopleís misery.
    What I wonder about working in a place like that is...doesn't deceiving yourself as to the nature of your job cause long run psychological problems?


    james.c.hendrickson@gmail.com
    202.468.6043

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      #3
      Yep, predatory lending is big business. High interest credit cards, payday loans, title loans, tax refund anticipation loans, sub-prime mortgages, and more. And we have the government to thank for it all by easing lending laws years ago that allowed all of these things to exist, probably to reward lobbying efforts from the financial sector.

      Some of those loans carry interest rates of 150% or more. Crap like that should be illegal, plain and simple. If you need to borrow money at 150% interest, you need to find another way.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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        #4
        Gary Rivlin wrote an interesting book on this subject; here's a summary:

        https://www.youtube.com/watch?v=9Dd4xNYZ_YI&t=395s

        Comment


          #5
          Originally posted by disneysteve View Post
          Yep, predatory lending is big business. High interest credit cards, payday loans, title loans, tax refund anticipation loans, sub-prime mortgages, and more. And we have the government to thank for it all by easing lending laws years ago that allowed all of these things to exist, probably to reward lobbying efforts from the financial sector.

          Some of those loans carry interest rates of 150% or more. Crap like that should be illegal, plain and simple. If you need to borrow money at 150% interest, you need to find another way.
          i find the reactions i have encountered have been like "yeah so what"
          I really think i am tired of the proposed "solutions" to this or that to help the poor............ while we allow these legal loan sharks to continue unchecked.
          In the article this woman talked as if some at bank were trying to convince themselves the were "helping".
          it is hard to compare the old days vs now type thing but when i was a child very few could qualify for credit cards. It was a accomplishment and something to strive for. No need to strive or work for anything... I bet the Capital one card for sub-prime looks EXACTLY like the one in the "wallet" of all their celebrity endorsers. It is the participation trophy.

          People would call anyone who suggests lending should be tightened or re-evaluated all sorts of names or poor shaming. Honestly i think it is way more CRUEL to let all this " help" to prey on them.
          .

          Comment


            #6
            Originally posted by james.hendrickson View Post
            Here is a quote from the article:
            What I wonder about working in a place like that is...doesn't deceiving yourself as to the nature of your job cause long run psychological problems?
            I think if someone thought about it like the author they might have some problems.
            In general many people have ZERO thought about what they do (or their employer does). i have a job where i do very little and it seems a waste for what they are paying.
            I am having a hard time justifying it because the revenue stream comes from people with almost no choice but pay for the product. I know research and development costs the is waste IMO.

            There obviously are many professions that people have a hard time keeping people or recruiting like collections for example. I think in cases like this they probably look for those who "BUY" the spin. A lot of sheeple out there.

            I never laughed so hard when a co-worker whom actually was told by HR " it is better then nothing" about their health insurance changes that doubled their personal cost.
            They spun it to her and she ended up trying to be a cheerleader for this bad deal they were asking people to choke down. When i pointed out the flaw in her BS they told her just avoid Smallsteps.

            Comment


              #7
              Originally posted by Smallsteps View Post

              People would call anyone who suggests lending should be tightened or re-evaluated all sorts of names or poor shaming. Honestly i think it is way more CRUEL to let all this " help" to prey on them.
              .
              I think you're right. A lot of people think extending credit is helpful, and perhaps that would be true if you were talking about a low interest business startup loan or maybe a low interest used car loan so that a person could get a cheap vehicle that would allow them to get a job that required dependable transportation. But when you're talking about plain old consumer credit and with sky high interest rates, you're just tossing an anchor to a drowning person.

              Tightening lending criteria doesn't hurt people. It saves them from getting in over their heads.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


                #8
                Originally posted by disneysteve View Post

                I think you're right. A lot of people think extending credit is helpful, and perhaps that would be true if you were talking about a low interest business startup loan or maybe a low interest used car loan so that a person could get a cheap vehicle that would allow them to get a job that required dependable transportation. But when you're talking about plain old consumer credit and with sky high interest rates, you're just tossing an anchor to a drowning person.

                Tightening lending criteria doesn't hurt people. It saves them from getting in over their heads.
                DIsneysteve...okay I gotta ask you this man - do you believe in free markets?
                james.c.hendrickson@gmail.com
                202.468.6043

                Comment


                  #9
                  Originally posted by Smallsteps View Post

                  I think if someone thought about it like the author they might have some problems.
                  In general many people have ZERO thought about what they do (or their employer does). i have a job where i do very little and it seems a waste for what they are paying.
                  I am having a hard time justifying it because the revenue stream comes from people with almost no choice but pay for the product. I know research and development costs the is waste IMO.
                  Smallsteps - I think people know, at least on a subconscious level, when they're doing something immoral.
                  james.c.hendrickson@gmail.com
                  202.468.6043

                  Comment


                    #10
                    Originally posted by james.hendrickson View Post

                    Smallsteps - I think people know, at least on a subconscious level, when they're doing something immoral.
                    I'm sure plenty of people in that industry know what they're doing is sleazy, but a paycheck is a paycheck. A lot of people are willing to set their ethics aside to put food on the table.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #11
                      Originally posted by disneysteve View Post

                      I'm sure plenty of people in that industry know what they're doing is sleazy, but a paycheck is a paycheck. A lot of people are willing to set their ethics aside to put food on the table.
                      maybe People who cannot get through a whole day without a rationalization.
                      i really believe in some places people have zero conscience about almost anything they do paycheck or not.

                      I am not putting the problem on the back of employees of industries that are leeches to the poor.
                      i am instead questioning why /how we continue to kick personal finance education down the road. Hope they learn it at home i guess ( funny we do not feel that way about other personal things). Too many people just hand a shovel to those digging themselves a hole they cannot get out of.

                      Since many parents/ family are not doing well anyway. Is that what are they teaching ..more bad habits. i guess what they mean by generational poverty.




                      Last edited by Smallsteps; 10-08-2019, 03:59 AM.

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