Aardman has just said pretty much what I have been thinking reading through this whole thread.
Noobs are not at risk from any kind of loaning scam. They have nothing to secure a loan with. If they get peds unsecured, they will spend them very quickly - more fool the lenders.
I have to ask myself why have a secured lending service at all.
Example: here I am with my just looted mod fap. Hmm I think - I need peds for another hunt. I have 3 options:
1. Sell my mod fap for market value
2. Exchange my mod fap for less than market value at the lender, then buy it back later at more than market value after interest is added
3. Deposit or sweat or gather fruit/dung
Well it seems to me that nobody is going to pick option 2. Either I need my mod fap, in which case I will keep it to use, and I will deposit. Or I don't need it, in which case sell for market value.
So what is the advantage of the 'banks'. Well suppose I am a player and I think I just want some more peds to hunt for that elusive ath. Hunting is looking good and I just want to kill 1 more, cos that will give me the ath I'm sure. But I can't deposit again - I know... I'll pawn my mod fap.
Damn ath did not come, and now, oh no I have to find a lot of peds to get my mod fap back or I will lose it for less than its market value. My bad.
Ok I will just deposit MV of the mod fap to get it back from lender. It's just a one-off deposit of course, because I don't want to lose the mod fap. Really. I won't do it another time. Errr.
So does anyone think the main motivation for 'banks' is they encourage panic depositing and so deposits go up?
I can honestly say I will never borrow from a lender in EU - there is no benefit. The only exception is large loans like mortgages to get LA or shop, secured on the property. Not short term loans.
So I wonder how the 'banks' are really expecting to make any money?
As a service between friends/socmates, on the other hand, it's a great idea. I have done many pvp trades with friends either lending items, or selling stuff for each other. This is a really great way to make playing more enjoyable.
So the services I actually find useful are illegal, but the legal ones are useless. Hmm
interesting.