Unfair Lending Practices

Unfair lending practices occur when lenders treat borrowers in a way that is dishonest, biased, or deceptive, often exploiting their lack of knowledge or financial situation. This can include charging excessively high interest rates, denying loans without valid reasons, or encouraging unnecessary borrowing. Such practices can trap borrowers in cycles of debt and limit their financial opportunities. Regulations aim to prevent these unfair practices by ensuring transparency, fairness, and equal access to credit for all consumers.