IHSI and the Lemonade Stand.
Isn't IHS' lawsuit similar to a $50 loan for a lemonade stand?
The lender promises $15 upfront and a full $50 credit line.
Instead of the initial $15, IHS is given just $5 to buy lemonade supplies. They buy the supplies. Make the lemonade. Sell lemonade all day. At the end of the day, they turn a .09 cent profit (after supplies, paying the employees, renting the table, etc).
Knowing IHS can charge a little extra for higher-end items, IHS plans to add orange juice, gourmet coffee, bagels, donuts, mini-sandwiches, snow cones and other commodities to help grow their business - their goal: to make greater profits to repay the full $50 loan. But...the lender denies IHS not only the remaining seed money, they deny the full $50 credit line, making it impossible to grow their business. Matters become more interesting when the lender demands immediate payment of the $5 well before the contract end date.
Isn't this a form of loan sharking?
Isn't it impossible to buy the needed supplies to grow the business?.
Isn't it impossible to sell more items, in particular higher-end items, to make a greater profit?
Isn't it therefore impossible to make a greater profit to repay even the initial loan?
The situation TCA put themselves in defines predatory lending.