What is Predatory Lending?
Predatory lending is the practice of using unfair, deceptive, and abusive tactics in lending money. Unscrupulous lenders in the mortgage and consumer lending industries take advantage of borrowers who are less knowledgeable about lending practices, getting them to agree to loan terms that are not only less than desirable, but also financially damaging. Predatory lenders also target borrowers who are so desperate to obtain loans that they will agree to nearly anything. Often, people with poor credit are primary targets for lenders who engage in predatory lending practices. Individuals with low incomes are often targets, as well as women, senior citizens, and minorities. However, individuals from all backgrounds, income levels, and walks of life can be victims of predatory lending. Many consider payday loans predatory lending. Typically, these short-term loans are offered to individuals without regard to credit. Though these loans are relatively easy to obtain, they are granted at unreas
Lending and mortgage origination practices become “predatory” when the borrower is led into a transaction that is not what they expected. Predatory lending practices may involve lenders, mortgage brokers, real estate brokers, attorneys, and home improvement contractors. Their schemes often target people who have small incomes but substantial equities in their homes. Products themselves are not predatory. For example, a loan with a variable interest rate can be a very good financial tool for many borrowers. However, if the borrower is sold a loan with a variable interest rate disguised as a mortgage loan with a fixed interest rate, the borrower is the victim of a bait and switch or predatory lending practice. In short, this type of conduct is nothing more than mortgage fraud practiced against consumers. Consumers can be lured into dealing with predatory lenders by aggressive mail, phone, TV, and even door-to-door sales tactics. Their advertisements promise lower monthly payments as a wa
Predatory lending is a term used broadly to refer to various illegal and immoral activities many lenders engage in. These practices are a major cause of foreclosures, poor credit and unmanageable financial burdens. Our trained personnel are skilled at spotting predatory practices in your loans and using this to your advantage when negotiating on your behalf.
