Question

Banks and credit card companies lobbied Congress hard for the prohibition against repeated bankruptcy filings. They argued that irresponsible consumers run up debt and then blithely walk away. You might think that, if this were true, lenders would avoid customers with a history of bankruptcy. This is far from the truth though. Research shows us that lenders actually target actually target those consumers, repeatedly sending them offers to borrow money. The reason is simple: These consumers are much more likely to take cash advances, which carry very high interest rates. And, they must pay these loans for the simple reason that they cannot declare bankruptcy again. Is this ethical?

Answer 1

Answer -

No this is not at all ethical. If the lenders advance money to such parties again again despite their records of bankrupcy and expect that they will return the money with the higher interest rates, it is highly unethical because on one side it increases the risk of the occurence of losses to the lenders and in the other hand it prevents the general people from taking up the loans because the lenders are busy lending to the bigger parties in expectations of the higher returns from them and they forget their ethical and professional code of conducts which is not acceptable.