predatory lending practices

Predatory lending practices involve unfair, deceptive, or fraudulent tactics used by lenders to entice borrowers into high-cost loans. These practices often target vulnerable individuals who may not fully understand the loan terms. Common features include excessively high-interest rates, hidden fees, and aggressive sales tactics. Borrowers may face loans that are unaffordable or structured to trap them in debt, such as balloon payments or short repayment periods. Ultimately, predatory lending can lead to severe financial hardship, making it essential for borrowers to be informed and cautious when considering loan offers.