<prompt> Human: So in all seriousness why hasnt anyone tried to make a more ethical payday loan business yet?The government had utterly failed to address the problem of predatory lending practices of these companies charging 300-1500 interest rates on short term loans. Why arent we doing anything about this using economics on our side to rectify this problem? Instead of charging 300 we crowd invest not crowd fund a company charging 30 loans? Take out overhead it could be a 25 return annually. Why not bring some serious competition to the marketplace? Granted Ive not run the hard numbers but we could be doing some good and making a good return while doing it.  <response>: Payday loans serve a very risky market -- the set of people that have credit scores so bad that they cannot get any other type of loan including personal loans, credit cards, etc.Does that mean payday loan companies arent predatory? Most people would agree that they are predatory, but all the ethical lenders e.g. traditional banks have already declined to extend credit to this population.In any case, I can virtually guarantee that 25 or 30 will not even break even. Credit card APRs are in that approximate range, and credit card companies dont extend credit. They dont do this because their analysts have run the numbers, and you dont get a single cent of profit but instead get massive defaults if you extend loans at 25-30 APR to the ultra-low credit score demographics. 