CSM 401 Writing Assignment 1

The primary goal or thesis of the documentary, Dirty Money, Season 1, Episode 2, Payday is to

bring awareness to the industry of short-term loans and shed light on the standard practice

models most commonly used by companies within this market.

The presentation of the documentary seemed balanced because it showed both sides of the story.

It allowed for the owners, interested parties, and friends of these parties to be interviewed and

state freely their recollection and opinions of the events that transpired. It also allowed the

consumers who had done business with the companies, the authorities who had built a case

against the owners (and associated parties), and other professionals in various fields to give their

testimony and evidence. The producers were able to show the human side of both parties (that

both parties had suffered or were suffering in the end) so that the viewer could draw their own

conclusion based on the events that had transpired, the knowledge level of all parties concerned,

and the evidence brought forward.

I would recommend increased oversight/regulation from government, courts, private-sector

organizations, or some other entity to improve consumer protections on this topic because many

of the standard practices within the short-term lending industry violate current consumer laws or

are unethical in nature. Consumers should not have to obtain legal counsel so that they can

understand that a loan contract for a $300 short-term loan is possibly going to cost them up to

$975, especially when the contract makes it appear that the payoff will only be $390 (Moyes,

2017). These practices not only violate laws such as the Truth-In-Lending Act but also violate
consumer rights such as the right to be informed. For example, if a consumer knows the basics of

TILA they would most likely assume that a valid business would be following the law and

therefore the information provided by the business would be presented in such a way that the

consumer is well informed in plain English. As shown in the documentary, Scott Tucker’s

businesses were not doing this and time after time it was obvious that the consumer did not

understand how the loans actually worked. Yet, in light of this information, he did nothing to

correct the process so that the consumer would be well informed. Although there has been

progress over the years to reform this industry, there is still much to be done. Allowing

businesses to charge upwards of 500% interest on a quick payday loan is an atrocity on our poor

and disadvantaged communities (Moyes, 2017).

Some form of consumer education on this topic could improve the consumer protection

challenges highlighted in this documentary by bringing attention to the deceptive and predatory

nature of the short-term lending industry. If consumers know about this from a young age,

regardless of class or social status, it could help plant the seed that these loans are just not an

option for them because of the dangers (similar to how we’re taught that drugs, alcohol, and

tabacco is dangerous). A broad education of personal finance and consumer rights needs to

become a part of the national curriculum standards for all in this nation, whether that be children

in K-12 schools, colleges & universities, new immigrants (regardless of documentation), or

adults of any societal class who were never afforded the opportunity to learn about these topics

in their formative years. Coupled with is broad education, providing education about the

predatory nature of the short-term lending industry could prove vital in communities where

incomes are lower. People in low income and disadvantaged communities are often hurt more
significantly by using these “debt trap” products (Moyes, 2017). Providing this education could

be significantly beneficial to their overall quality of life and finances in the long run.

If this documentary was shown in class, the three most important consumer protection or market

structure concepts that should be conveyed would be that consumers have the right to be

informed at a generally accepted reading level that the average American can understand (not

legalese), consumers have the right to redress or remedy when they are dissatisfied or feel the

product was not represented truthfully, and consumers have the right to be educated on the

workings of the products offered to them and the laws that pertain to those products or the

industry those products are tied to.

Reference:

Moss, J. (Director). (2017). Dirty Money, Season 1, Episode 2, Payday [Documentary]. Netflix

Studios, LLC and Netflix Global, LLC.