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.

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