Predatory Lending
December 6, 2008
Predatory lending usually means a secured loan made by a lender that knows the borrower won’t be able to repay them. They then sieze the car or home and sell it. The practice involves some deception on the part of the lender. Some of the practices of predatory lending are illegal in many states.
Other types of loans that may be considered predatory are credit cards, payday loans and any other loan where the interest rate is unreasonably high. Predatory lenders usually target lower income minorities and the elderly.
Predatory borrowing can refer to borrowing with no intention of repaying, submitting fraudulent loan applications and lying about income.
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