Predatory+Lenders

Predatory lenders- give out loans to people with bad credit history ( low credit scored), in turn they charge very high interest rates and are known to have many hidden fees, and charge large late fees

Mortgage lending is predatory when it has a significant adverse impact on a borrower’s life, either because the loan is inappropriate to the borrower’s situation, is grossly over-priced, or both.
 * Predatory lenders take advantage of borrower weaknesses**. These include ignorance about how mortgages work. Predatory lenders take advantage of borrower shortsightedness where they focus on initial payments, ignoring the possibility of higher future payments. The promise of low initial payments is a principal weapon in the predator’s arsenal. People ignore how much they will owe down the road, which makes it easy for predators to load exorbitant upfront fees into the loan balance.

In cases of predatory lending, over-charges are offensively large, often associated with steering into inappropriate mortgage types, and sometimes associated with refinances that make the borrower poorer. The result is a significant adverse impact on the borrower’s life.