Because, theoretically, these companies would not be profitable if their interest rates were regulated, and therefore nobody would offer loans.

But I don't have statistics on default rate or anything of that sort.

These companies wouldn't be profitable, but other companies that are founded post-regulation could be. Companies have a remarkable ability to mold their business models around regulation.

There is regulation in many states.

The problem is the default rate.

Example: An investor issues loans for $100k at $1k each. He charges the legal 30% interest to make $30k profit / return on his money. However, 30-40% of the borrowers default and these are unsecured loans. He makes 0% return. He stops offering these loans and now these people don’t have the access to these credit facilities.

It will be ugly, just like the venezuelan government setting prices of food items led to farmers abandoning agriculture.