predatory lending laws

Predatory lending laws are designed to protect borrowers from unscrupulous loan practices that exploit their financial situations. These laws prohibit lenders from charging excessive fees, offering loans with hidden or unfair terms, or targeting vulnerable populations. They require clear disclosures about loan costs and terms, and often restrict certain high-risk lending practices. The goal is to ensure fair lending, prevent borrowers from falling into debt traps, and promote transparency and responsible lending.