Episode 134: Benevolence Backfires: The Cobra Effect
Words & Numbers
00:00
The Unintended Consequences of Doing the Right Thing
With the intent of protecting the low-income borrower. But then you have to ask a very difficult question. Without this option, what's the next best option for thelow-income borrower? Let's suppose you're talking about a $100 loan. You can't go to the payday lender, so instead you don't pay your credit card bill and you incur a credit card late fee. That's due to math. 800% interest. Twice as much.
Transcript
Play full episode
