Predatory Lending - What Is It?

Predatory lending is not easily defined. Predatory lenders intend to achieve abnormally high returns by taking advantage of their customers. The term is generally used to describe a combination of unfair or abusive loan terms, unscrupulous and misleading marketing, and high-pressure tactics that limit information or choices available to the customer. These conditions can occur in any lending transaction, however they seem to be more prevalent in the home mortgage arena.

First published on BankersOnline.com 1/15/01