Ethical Issues Related to Payday Lending
Payday lending has been the subject of strong ethical criticism often by consumer advocates and some academics. What is the nature of these ethical criticisms and how strong are they? This chapter uses consequentialist and corporate social responsibility perspectives. Through these analyses the authors argue that the ethical critique that the payday loan industry receives is, in part, justified. It exploits vulnerable groups, harms many who get caught in debt traps, and overcharges every responsible borrower.
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