Apple is tougher on predatory lenders than the US government



a close up of a computer: CEO Tim Cook presents the new iPhone 11 at an Apple event at their headquarters in Cupertino


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CEO Tim Cook presents the new iPhone 11 at an Apple event at their headquarters in Cupertino

If you want to make someone a personal loan through an app on their iPhone, there are rules—notably, a limit of 36% on the annual interest. If you want to make the same loan to someone on the street, you can offer them annual interest rates over 400%.

The difference between the rules adopted by Apple’s app store and those enforced on brick-and-mortar payday lenders by US regulators underscores how unequal access to credit creates an unequal society.

Consumer advocates have long complained that payday lending and associated businesses like auto title lenders aren’t operating the way we expect of credit providers: Their business model is not “profit when a borrower pays back their loan with interest,” but instead “profit when a borrower cannot pay back their loan.” This

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