- Lenders prefer lending to poor borrowers due to higher risk premiums, but this creates regressive debt where the poor pay more.
- Financial innovation often reduces risk for lenders without lowering the risk premium, shifting value from borrowers to lenders.
- Subprime mortgages and contract lending scams use teaser rates and repossession to exploit borrowers, exemplified by truckers and auto loans.
- Digital technology enables cheaper repossession through trackers, remote immobilization, and self-driving car features, making risky loans more profitable.
- The Digital Millennium Copyright Act (DMCA) 1201 prevents users from disabling digital arm-breakers in devices, protecting lenders' control.
- Apple's new iOS update allows lenders to brick devices for missed payments, bringing subprime gadget leasing mainstream.