I think the point (or at least one of them) is that "vulnerable people" should not be "exploited". You could offer them any ridiculous terms & conditions and they would agree just to get their hands on the cash. In accepting the crazy terms they are just worsening their already vulnerable position. In most cases it is kinder to deny them the loan.
Also (as depicted in the video) there are alternative interest free loans available if their need is genuine.
4 Corners, page-30
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