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by Mastodon on August 14th, 2009

Mastodon

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What is predatory lending?

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  • by cunning stunt who u calling chicken on August 14th, 2009

    cunning stunt who u calling chicken

    Predatory lending references any credit/finance situation which puts the consumer in a losing position.
    A bank, selling a homeowner an Equity line of credit may be predatory when they will loan more than a house is worth. That is a no win situation for the homeowner.
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    Predatory lending also refers to interest rates. Not just high interest rates, but floating interest rates, like ARMs.
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    Predatory lending preys on seniors, it preys on minorities who might have a harder time obtaining credit from regular sources. It also preys on immigrants with promises of homeownership regardless of legal status.
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    Predatory lending can be a "balloon note", or, No Payments Due until 2010 (then, you will be expected to pay the balance of the loan).
    These are just some very basic examples of predatory lending.

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