Handsomedan: On a couple of levels.
1: predatory lending and bad practices
2: people openly admitting that they’ve borrowed money they can’t really afford without reading the contract
I've run into a similar situation, a long-term unemployed person with no money being lent quite a lot of it to buy a car he could never repay the loan on. Again, fault on both sides, he should never have applied for the loan and the lenders should never have given him one given that they would have known in advance he couldn't repay it.
Is this actually a workable (if crooked) business model for loan companies? Lend money to someone they know can't repay it, get the first few repayments, then repossess the car and pocket the initial payments?