The Kafkaesque world of consumer finance

With student loans on everyone’s mind thanks to Elizabeth Warren, this episode of the new Michael Lewis podcast is a particularly timely listen.

Warning: it’ll make your blood boil as it explores that way that student loan servicing is designed to turn students into lifelong cash slaves for the companies servicing their loans, with a business model based on getting them to make mistakes in how they handle their debt and rewarding servicers for failing to provide service.

It’s not just about student loans, though; there are lots of ways that consumer finance companies are built on the idea of pushing borrowers into mistakes and failures to make more money.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s