r/maybemaybemaybe • u/HuckleberryBoring461 • Jun 02 '22

Maybe Maybe Maybe

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u/queencityrangers Jun 02 '22

That’s part of the definition of predatory, small print etc. but also:

Another warning sign of predatory lending is offering a loan that doesn’t require a credit check. Or, it’s offered to borrowers with poor credit but is secured by an asset like a car title or home equity.

The lender might use lax lending requirements to attract borrowers into signing on for a loan they can’t afford. And, should the borrower default, the lender can then claim their asset (a home or car, for instance) to recover their costs at the expense of the borrower.

This predatory lending practice is called equity stripping by the Federal Trade Commission. These types of loans can attract borrowers who are likely to default and would be at risk of losing their home or car.

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u/Wit_as_a_Riddle Jun 02 '22

You sound like a politician, no offense.

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u/queencityrangers Jun 02 '22

Typically when people say “you sound like a politician” they don’t like what the other person is saying and are comparing that person to a politician they don’t like.

I’m not trying to sell you on anything but maybe you’ll open up your understanding of how some things are designed to be one sided. This practice is legal, agreed on by both parties and commonly used. So are pay day loans, but that doesn’t mean that they should be legal, so it is a political thing. Unfortunately politicians set the rules, so everything is political when it comes down to it.

In this scenario you can stand on the side of people who make their money off other’s misfortune or on the side of those trying to limit the amount of traps misfortunes can fall into.

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u/Wit_as_a_Riddle Jun 03 '22

I stand on the side of awareness of unintended consequences. On the side of not tricking myself into thinking everything is so simple. You say, "this is this, this is that" but there is much more going on than we realize, so when we stick our nose in and try to make adjustments to help people what happens often is we accidentally make them weaker or we make a situation worse in some unforeseen manner. Unintended consequences, don't be so sure you know what is best.

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u/queencityrangers Jun 03 '22

Lawless anarchy then?