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3 pages/≈825 words
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Style:
APA
Subject:
Business & Marketing
Type:
Essay
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English (U.S.)
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Topic:

Unethical Aspect in Payday Loan Industry: Business & Marketing Essay

Essay Instructions:

Not All Companies Are Viewed as Equal
Overview
In the land of free trade, the public does not view all industries as equal. Do you believe that is ethical? Do you believe that some industries are unfairly targeted? Should it be consumers’ choice to partake in products that are not healthy for them, or do those companies have an ethical obligation to protect people?
Instructions
Download the Week 6 Assignment Template [DOCX], which will help you with your assignment.
Choose one of the following industries to frame your paper:
The pharmaceutical industry.
The payday loan industry.
Cloning for medical purposes.
Write a paper in which you:
Become an advocate for either the consumer or the industry.
Prepare an argument explaining the major reasons why you support either the consumer or the industry.
Discuss whether you believe it is possible for a company to cater to both its best interest and that of the consumer simultaneously or if one always has to prevail. Justify your response.
Use at least two quality references. Note: Wikipedia and similar Websites do not qualify as academic resources.
Requirements
You will graded according to the following criteria:
Provide evidence for your support of the consumer or industry.
Justify your position regarding whether it is possible for a company to simultaneously cater to both its best interest and that of the consumer, or if only one can prevail.
Follow Strayer Writing Standards (SWS) requirements for format, in-text citation of quotes and paraphrases, and references page.
Follow guidelines for clear and organized writing: include an introductory and concluding paragraph; address main ideas in body paragraphs with a topic sentence and supporting sentences.
Adhere to standard rules of English grammar, punctuation, mechanics, and spelling.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Determine the ethical considerations for balancing corporate and social responsibilities.

Essay Sample Content Preview:

Unethical Aspect in Payday Loan Industry
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Institution:
Unethical Aspect in Payday Loan Industry
Introduction
The payday loan industry is one sector that many people have perceived as an unethical one. The negative perception about this industry has been attributed to unscrupulous procedures through which it operates. Experts have argued that most people who opt for payday loans belong to a class of financially distressed people. Besides, Rawl's concept that perceives justice as fairness does not apply in the industries as borrowers are left with limited options to bargain terms. This paper explains why consumers in the payday loan industry need to be protected for the unfairness and why payday loan companies can't protect both their interest and that of consumers simultaneously.
Why consumers in the pay loan industry need protection
Misleading Advertising
Most companies in the payday loan industry have been accused of manipulating borrowers into short-term loans through misleading advertisements. Digital networking platforms like Google and Facebook have banned payday loan lenders from running adverts on the media. The main reason for the ban has been attributed to the common phrases like "quick cash" and "no credit checks" that the lenders use and, in return, leads borrowers to unnecessary lending and misuse of loans (Stanley, 2018).
Failure to predetermine consumers’ ability to pay the loan
Research has shown that 64% of new borrowers fail to service their loan in the first term hence incurring a rollover fee (Stanley, 2018). This staggering portion of borrowers' failure has been attributed to lenders' inability to conduct a background check on borrowers to inform them of their ability to service the loans. With the vast number of defaulters, the lenders gain more from the rollover fees and burdening the less fortunate borrowers who they are ideally supposed to caution from financial distress.
Additional Rollover Fee and Abusive Collection Strategies
Besides charging high interests, which in most cases revolves around 400% or more, additional rollover fees are seen as an extra burden to already overburdened borrowers who get to pay three times or more the amount they initially borrowed (Stanley, 2018). As a result, the lenders become unethical as they rely more on rollovers or repetitive borrowing as their primary source of revenue. The debt collection strategy applied by the lenders is also immoral. Taking a first-pass in a borrowers’ salary makes debt a priority in their budget before other necessities such as rent and food (Stanley, 2018). The wholesome payment of the loan is another act that makes payday loan companies unethical.
Why payday loan companies cannot afford carter for their interest and that of others
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