You’re arguing past each other.
Of course no one who loans money wants their customers to default (the default rate is over 30%).
But they DO want customers who DON’T (not can’t) pay back their loans and keep getting dipped every two weeks for the service charge. Steady cashflow.
I ask you both, though, where would these people go for short term money if this business were outlawed?
Vinnie down on the corner?
You think Vinnie will stop with sending you to collections when you default?