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A comment on Regulators Shut Down Lending Platform (YC Alum) LendUp. Parent comment

Re:Regulators Shut Down Lending Platform (YC Alum) LendUp by mytailorisrich on Wednesday December 22, 2021 @06:56PM (#29657029)
High APR is quite reasonable for very short term loans. E.g. 36% APR must be around 3% a month, which does not sound unreasonable for a one month loan. Here in the UK credit cards are very commonly at circa 20% APR.

What's important is to mandate detailed and clear information so that consumers understand what the rate exactly means and what the consequences or not repaying quickly are before they sign up. Then it's a personal choice and responsibility.

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Re:Regulators Shut Down Lending Platform (YC Alum) LendUp by smorgusofborg on Thursday December 23, 2021 @09:55AM (#29662382)
3% a month is not reasonable by past metrics. Utility companies like heating oil that didn't want to loan money used to charge 0.5-1.5% per month after the grace period back when normal mortgage rates were ~7% (APY) and car loans more like 11%(APY).

This is simply being in the business of gouging people who will end up needing to carry loans over and are better off having bad credit but never really have a point of change where they realize they need to declare bankruptcy or take other financial advice.

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