Is Justine Petersen Ripping People Off?
Justine Petersen is a micro lender non profit specializing in making loans to unbanked individuals who tend to be mostly people of color. On many of their loans they charge a 10.5% interest rate where the market rate is less than 1% for a business loan. Is this fair? Even granting that their loan pool is significantly higher risk than a bank’s charging 10 times the interest is way out of line. Is anyone interested in this? Are they taking advantage of poor people? Written by Paul Dribin