Beware of predatory lending practices | Community
Don’t take the bait when predatory lenders try to reel you in.
Recognizing and avoiding these scams can save you many financial headaches in the future, including high debt, ruined credit and even the loss of your home.
Predatory lending typically refers to lending practices which impose deceptive, unfair or abusive terms to borrowers. Many of these practices are illegal. Others are legal, but not in the borrower’s best interests.
Common predatory lending techniques include payday loans, car title loans and subprime mortgages.
Creditors often target those with limited financial resources and those who need emergency cash (e.g., paying medical bills, making a home repair, car payment) or even victims of natural disasters. And it’s not just criminals who practice…