The institutions give you cheap loans in exchange. This has opportunity costs. Giving you cheap loans is not free for these institutions. They could be investing their money elsewhere instead. They would do so if it wasn’t for the fact that having this information about you reduces the risk just enough that they prefer giving you the cheap loans to investing their money elsewhere. People who are offered these terms are offered a fair deal that is a win for both parties and that they are offered a fair deal is exactly the reason they accept it.

Yes, terms authored by an entity are often more beneficial to that entity. That doesn't make them "coercive". Don't do business with them and you'll be fine. Credit monitoring companies are nothing like the mafia. They won't come break your legs if you don't play ball with them.

Of course you're concerned. People that can't or won't manage to be responsible for themselves are always concerned that others don't agree with them. It threatens to hamper that carefree way of life.