Predatory Lending
Predatory lending refers to unfair, deceptive, or fraudulent practices by lenders when offering loans. It often involves high-interest rates, hidden fees, and terms that are complicated or misleading. These loans are typically targeted at vulnerable borrowers, such as those with poor credit or limited financial knowledge. Predatory lenders may use aggressive tactics to convince borrowers to accept unfavorable terms, leading to a cycle of debt that can result in foreclosure or bankruptcy. Ultimately, predatory lending takes advantage of individuals, making it difficult for them to achieve financial stability.
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Predatory lending refers to unfair, deceptive, or abusive practices by lenders, often targeting vulnerable borrowers. This can include high-interest rates, excessive fees, and misleading terms that trap borrowers in cycles of debt. For example, lenders may push high-cost loans to individuals with poor credit, sometimes without fully disclosing the risks. Such practices can lead to foreclosures or financial ruin, as borrowers struggle to repay loans under unfavorable conditions. Predatory lending is illegal in many places, as it exploits those who may be desperate for financial assistance.