What does predatory lending mean?
Abusive or “predatory” lenders target people who are strapped for cash – often preying on the elderly and people in lower-income groups. But their loans usually have sky-high interest rates and fees. They’re often illegal, too. You need to know a “good” loan from a bad one. Otherwise, you could end up paying too much, hurting your credit rating – and even losing your home. Home equity scams are worth mentioning specifically. These are a common practice of predatory lenders, who seek out people who are cash-poor but have equity in their house. Before the borrowers know what hit them, they may have signed on to a loan they can’t pay, eventually leading to foreclosure on their home. How do I know a “bad loan” when I see it? These are some things you might hear from a predatory lender: • “This deal won’t last long.” You are pressured by lenders who say they can “guarantee” you a “bargain” loan…only if you apply today. Legitimate lenders won’t pressure you into impulse decisions. • “Bad cre
