Introduction
Nowadays, it is expected of students to continue their education path after graduating from school. To get through college, students have to put in a lot of financial investments, which cover tutoring, textbooks, etc. Sadly, after getting a degree, a lot of graduates are left with crippling debt, which is the situation that Skip was put in. After considering the options to clean up his credit history, he discovers Syndicated Lending, a company that seems appropriate for satisfying Skip’s needs. However, according to the company’s policy, Syndicate does not provide interest quotes unless there is a completed credit check, the application for which also costs money. Moreover, after doing some research, Skip finds out about the problematic reputation of the company, and now he is facing a dilemma.
Syndicated Lending research
Making such a decision can surely have unpredictable consequences. So-called loan sharks implement Illegal high-interest lending without notice, thus exploiting vulnerable individuals (Saunders, 2019). Nonetheless, it is unclear whether Syndicate is indeed following unethical lending practices; therefore, Skip could risk it and fill out a loan application. Considering that he is a riskier borrower, it is doubtful that any other financial organization would provide him with a loan.
However, the fact that interest rates are not published on a company’s website is concerning. In such a delicate matter, that sort of crucial information should not be vague or absent; otherwise, there is a risk for a borrower to be taken advantage of. Concealing information about interest rates or any other aspect of lending is similar to a “bait and switch” practice, which is believed to be a kind of fraud. For that reason, the ethics of Syndicate seem questionable, and Skip should look for other lending companies with more straightforward policies.
References
Saunders, P. (2019). Loan sharking: changing patterns in, and challenging perceptions of, an abuse of deprivation. Journal of Public Health. NewYork, NY: Springer.