In a recent online discussion, the topic of conversation was predatory business practices that shouldn’t be legal but somehow are. Chances are you’ve wondered how some of these things are legal, too.
Here are ten predatory businesses that shouldn’t be legal but are.
Table of Contents
Pretty much everyone agrees that Ticketmaster, with all of their extra fees, should be run out of business. Everyone still pays the fees because that’s the only way to get tickets to anything.
One person said, “We went to a preseason hockey game the other week. Tickets were $5 each but there was around $8 of Ticketmaster fees for each one and you had to use their app to get in the door because the bar codes change like every 30 seconds or something. It’s ridiculous.”
Payday Loan Companies
Sometimes, you need a little help making ends meet from check to check. But, if you can avoid them, stay away from payday loan lenders.
One man said, “Payday loan companies – they’re like financial vampires, sucking the life out of people with high-interest rates.”
Another commented, “And yet most of them are owned by major banks. Bank of America, Wells Fargo, US Bank, JP Morgan/Chase collectively all own the largest payday lender companies.”
Rent-to-Own Furniture and Appliances
Unless you only need it for a short period of time, you are better off buying items second-hand instead of using a rent-to-own place.
One person said, “The mark up on the interest over time ends up costing four times the purchase – or more.” Someone replied, “That’s how my $800 TV ended up costing me $2,000.”
Legally, you have to have car insurance. However, if you use it, you’ll be penalized for it. One woman said, “You get penalized for using it. Even just once in some cases.”
Another said, “In my opinion you don’t even have to use it. I have had same company for years. Went from 463 to 963 for 6 month premium in 2 years. What a rip!”
Sports Betting Apps
You used to have to head to a casino to place a sports bet, but not anymore. There are plenty of apps to prove it.
One man said, “The legalization of sports betting has absolutely ruined the casual watching of sports. Now it’s just watching 300 different betting ads while your buddies complain about their parlays.”
Another said, “All the sports betting commercials creep me out. When you need as much/more air time on disclosures regarding addiction as you do discussing the benefits, then maybe it’s not such a good idea.”
Health Insurance and Overpriced Prescriptions
Health insurance is great to have when you are able to use it. Now, even if your doctor says you need something, the insurance company may say decline to pay.
One man said, “My wife is type 1 diabetic. Her pump is over $1,000 a month with 50% coverage. It’s $177 for just the sensor pack and we have the best coverage we can afford.”
Someone replied, “‘You’ll be glad you have it when you get sick though!’ they say, while doing everything they possibly can to avoid helping you when you need it.”
Corporations Buying Homes
In a lot of areas, corporations own more property than individuals do. Their purchase of these homes just inflates the cost of housing and rent for people who need it.
One commenter said, “I really do think this is one of the most underrated problems of today’s world, and I know that a great deal of importance is already given to it. But man, if you don’t have a house or spend most of what you get just to have a roof, not only will you be living a crappy life, but you are literally useless to your countries economy, since you can’t consume anything.”
If you want a higher education, then you are going to have to pay for it. However, student loans in the U.S. are some of the most predatory business practices in existence today.
One woman said, “If you want a high paying job and want to be competitive, then you need a college degree, sometimes a masters, or even a professional degree. The loans are so predatory! So many of my classmates never had any credit, yet they were strapped with tens of thousands of loans at really high interest, effectively financially crippling them before they even graduate.”
When you lose your job unexpectedly, unemployment benefits can help keep you afloat temporarily. At least, that’s how it’s supposed to work.
One person said, “The application has a bunch of hoops to jump through by proving to them with a ton of information that you are looking for work and if you do not fill out the form correctly and they pay you, they make you pay back whatever week they gave you.”
They continue, “Also if you work a temp gig like DoorDash or Craigslist, they will straight up deny your benefits as they see you have a job and sometimes will make you pay back benefits. Also when you do get benefits, you have to decide on whether you want to eat or pay bills as it’s a laughable amount. Also customer service is completely non-existent. I try calling the number to get help only to be in a constant loop of automated phone systems.”
A nice place to get away on vacation for a few days sounds amazing. That’s how timeshares, now known as “vacation clubs,” suck in their members.
One commenter said, “I don’t understand how people still get them. My whole life (over 30 years so far) the idea of a timeshare was a joke and I heard all bad things. I don’t get how they still trick people.”
Another replied, “They don’t sell them as timeshares now they are ‘vacation clubs.’ They entice people with free vacations to sit through presentations, much of which are devoted to saying how timeshares were terrible but vacation clubs are totally different and great.”
11 Most Evil People In the World Right Now
Not everyone wants to play nice with the rest of the world. In fact, they only look out for themselves, and seek to destroy everything around them. Here are 11 of the most evil people in the world today.
How to Become Rich Quickly
Everyone wants to become rich quickly. While not always possible, there are legitimate ways to become wealthy. Follow these methods and you’ll be on the road to riches.
Why Do Things Look So Bad These Days?
We’re being told the economy is rebounding, but it certainly doesn’t feel that way for many. Here are 12 reasons why things look and feel so bad today
11 Best Passive Income Apps Of 2023
Passive income is a great way to achieve your financial goals. Thankfully, there are apps that help you start and often with minimal resources. Get started today!
Villains to Victors: 10 People Who Were Eventually Proven Right
Not everyone is appreciated in their time. Eventually, they’re proven correct. Here are ten people who were vilified originally, only to be proven right in the long-term.
This thread inspired this post.
I’m John Schmoll, a former stockbroker, MBA-grad, published finance writer, and founder of Frugal Rules.
As a veteran of the financial services industry, I’ve worked as a mutual fund administrator, banker, and stockbroker and was Series 7 and 63-licensed, but I left all that behind in 2012 to help people learn how to manage their money.
My goal is to help you gain the knowledge you need to become financially independent with personally-tested financial tools and money-saving solutions.