Re:Amazon workers vote against unionizing in Alabama
by kenniskrag on Friday April 09, 2021 @05:47PM
(#26756604)
In some country consumer credits are regulated and the interest rate is capped. Also it is not legal in some country to grant a credit if the lender cant't pay it back (e.g. in the european union)
Re:Amazon workers vote against unionizing in Alabama
by gambiting on Friday April 09, 2021 @06:32PM
(#26757031)
>> Also it is not legal in some country to grant a credit if the lender cant't pay it back (e.g. in the european union
European Union is not a country and every member state has their own rules regulating this, there isn't one payday lenders rulebook across the entire EU.
As for what you said - it's true, except that it boils down to a checkbox on the form "are you able to make repayments on this loan?" and that's about it, that takes care of the legal side of things.
That's not a comment on the fairness of the rate charged. But if there is a sufficient amount of competition among lenders, and they were effectively regulated and monitored, we could expect their rates are enough to allow them to make a reasonable profit in spite of the risk of default.
[0] https://thehill.com/regulation/237538-borrowers-default-on-n...