Originally posted by Salimar
One cannot blame these companies but the lack regulation. If it was not allowed to give away money to insolvent customers, then this wouldn't have happened.
Doing the research to trust the people backing your loans is part of the due diligence process. Part of due diligence is analyzing risk.

This falls on three parties..

1. People who spent beyond their means.
2. Companies that lent money foolishly
3. Companies that insured loans that they couldn't truly back.