[Guppies]

Just because a competitive market is determining the interest rate that they use does not make the interest rate morally sound. Likewise just because the alternative may be worse does not make the current situation justified. Also, justifying the high interest rates associated with payday loan on the basis that the customers they serve are high risk is more of an excuse than a reason.

Look at the Nobel peace prize winner for this year. He was awarded it for starting a program that gave micro-loans (on the order of a few hundred dollars, the same as a payday loan place) to people who would not be able to qualify for a traditional loan. And he did it while still offering the loan at a very reasonable rate.

Obviously he was not running a business based on accruing interest off the loans, but what he was doing was unarguably more morally sound than a payday loan place.

Now don't get me wrong, I'm not implying that people on this forum should all give up their goals of accruing wealth and start charitable organizations that offer micro-loans at low rates. I'm just trying to illustrate the fact that although people in this thread are arguing that a competitive market justifies the high rates, really all it does is give an excuse for one to hide behind. You just need to accept the fact that you are offering the high rates for your own monetary gains and you could offer lower rates if you weighed the benefits of others over that of yourselves.

Additionally everyone here should be aware that I'm not claiming to be morally superior to the rest of you. I certainly don't run a charity and I read this forum to gain knowledge that will help me gain wealth. But I also admit the fact that I do so to the detriment of others and just because I take place in a competitive marketplace does not justify this fact on a moral basis.