This was huge news in San Diego in 2012 when it was revealed. The worst of these types of deals are now outlawed as of 2013.

http://articles.latimes.com/2013/oct/02/local/la-me-ln-schoo...

Holy cow. I can't believe this is a thing and that municipalities would agree to this. The Consumer Financial Protection Bureau should start creating laws to protect the government from making decisions like this.