Everyone in the demographics most likely to buy these financial products has seen this stuff play out many times by adulthood. They're not stupid or ignorant, or at least not in those ways. They know how it all plays out or how the math maths. They buy these products anyway for human poverty trap incentive to not make good decisions because it won't actually change anything type reasons.

Regulation won't change the fundamental economic reality of those living paycheck to paycheck. It'll just change the form those hardships take.