You would think that it would be very hard to make money off people who don't have much of it. However many businesses do exactly that. It's not a by-product it's the main game. One of those industries is the Payday Loan companies.
The reason people go to these companies is because their credit rating is so low that they cannot get a loan from other financial organisations. That may be because they are someone who is part of the working poor, or unemployed, or on a pension of some kind, or they might just be really bad with money. In other words these people are amongst the most vulnerable people in society. And the payday companies make nearly all of their money from such people.
The loans are not massive, from hundreds to thousands of dollars. Most are taken out to cover an unexpected emergency. The payday companies argue that they help people get through difficult financial situations. They argue that they help vulnerable people. Thats true, sadly it's not the whole truth.
If it was interest rates of 400% wouldn't exist!
In Australia this is legal!
If you don't live in Australia, don't be surprised if it's also legal where you live.
Most people if they needed a few hundred or even a few thousand would go to family to help them. For whatever reason these people cannot do that. It might be a good reason or it might be a bad reason. In the old days the church might be able to help. Today the payday loan companies exist.
It is not that such companies should not exist, it is that they should not be given free reign to commit plunder. Financial companies, big and small need to be held accountable for their actions, something that they currently are not!
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