Predatory Lending

Predatory lending refers to the practice of persuading borrowers to agree to unfair and abusive loan terms. These lending companies mostly target the racial minorities, women, elders etc .There are many victims of predatory lending across all demographics.

Predatory lending generally happens on loans with the support of some kind of collateral like a car or house. So the defaults on payment on the part of the borrower can be covered by selling or repossessing the property. Payday loans, credit cards and overdraft loans are sometimes called as predatory lending. In simple words, any kind of lending with unreasonable and high interest rates is called as predatory lending.

Usually the abusive lending practices are labeled as predatory lending. There are lots of disputes among the consumer groups and lenders about what exactly is termed as unfair and predatory practices. Many people claim that predatory loans are usually made in poor and minority neighborhoods where other loan options are not available.

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