Remember this is not happening in a free market.  This is a corner where many (if not all) those who wish to borrow money are not well informed about the actual (absorbitant) cost.  The process is quick and easy for the borrowers: the lender has their information, the lender handles a cash flow, is in a position to 'process' the loan. I don't see that there could be a competitor ('a somebody else') in a similarly favourable position.  Of course it is an easy business opportunity. But it is an example of how capitalism does not automatically consider the other side (the borrower) since real competition does not exist... competition as in a perfectly working free market, where the parties have full / perfect knowledge.