Why exactly did you post that on this board?
PayDay loans have effective APRs of 400% or more. Here is a company that is doing payday loans with zero set fees and zero interest, and instead a "you decide how much to give us" fee policy. As far as I can tell it's burning through cash and while perhaps this business model will work with bank borrowing rates of 0%, consensus is the Fed will raise rates in Dec and another 3 times in 2018.
My guess is this will IPO early 2018 and have a spectacular Blue Apron like fail. So, with my post I have started a file on this company and if it does appear they will IPO I will be shouting about it from the rooftops.
On a broader note, I think a major component of the Financial Crisis was the unsophisticated mortgage applicants who gleefully believed they could afford jumbo loans because the mortgage companies and banks told them so.
Did Dodd-Frank address this in any way? No, in fact, it made this particular situation worse by, for example, killing the "Truth in Lending" rule for auto loans under $50K. Buy a Porsche and you still get the 1-page final cost summary. Buy a Camry and you get the shaft.
Fast forward from the days of jumbo mortgages and what do you see? PayDay loan and Title loan and Pawn shops in every low income neighborhood. College students with an average student debt load of $28K ($1.4 Trillion dollars total currently) who can't afford car loans, let alone house down payments. I'm all for higher education, but if you sit down and actually talk to students today they will tell you they have been given loans not only for tuition and books, but for living expenses and essentials like MacBooks. Hello? Alarm bells anyone?
Here comes a brand new generation of consumers who can't balance a checkbook and all know someone who made thousands of dollars trading "marijuana stocks". The wave for the next financial crisis is already forming.
News 
Market Data 
Discover 
AI
