Definition
Abusive lending practices including excessive fees, high rates, and targeting vulnerable borrowers, illegal under consumer protection laws.
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Predatory lending exploits borrowers through unfair terms. Practices include targeting minorities, low-income, and elderly. Predatory lending causes defaults and foreclosures. Predatory lending enforcement protects vulnerable borrowers. Avoiding predatory lenders requires awareness.
Pro Tip
Avoid predatory lenders; shop multiple lenders and understand all terms.
Example
Predatory lender targeting elderly borrower with high rates and excessive fees.