predatory lending
Abusive loan practices
Predatory lending refers to loan practices that exploit borrowers through deceptive terms, excessive fees, or interest rates designed to trap them in debt.
Predatory lenders target vulnerable populations—the elderly, low-income communities, those with poor credit—offering loans the borrower cannot realistically repay.
The neighborhood was devastated by predatory lending during the housing boom.
Common tactics include hidden fees, balloon payments, and pressure to refinance repeatedly.
Illegal high-interest lenders
- debt trapSelf-perpetuating financial burden
- payday loansShort-term high-interest borrowing
- title loansDebt secured by vehicle ownership
- rent-to-ownGradual purchase through payments
financial abuse · coercive · community impact · poverty trap · financial ruin · exploitation · wage garnishment
Under top credit tier
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
- bankruptcyLegal status when insolvent
- adjustable-rate mortgageHome loan with shifting interest
underwater mortgage · delinquency · repossession · judgment · garnishment · unsecured debt · liar loans
Fraudulent substitution tactic
- hidden feesConcealed additional costs
- fine printMiniature contractual text
- fraudulentInvolving intentional dishonesty
- deceptive marketingPromotional dishonesty toward buyers
teaser rates · false promises · manipulative · steering · sham · misrepresentation · obfuscation · kickbacks
Excessive borrowing fees
- APRYearly borrowing cost
- compound interestReturns on reinvested earnings
- interest rate capsMaximum permissible lending charges
- finance chargesCost of borrowing money
penalty fees · points · credit insurance · overcharging · late fees · default rates
loan sharks
Illegal high-interest lenders
- debt trapSelf-perpetuating financial burden
- payday loansShort-term high-interest borrowing
- title loansDebt secured by vehicle ownership
rent-to-own · financial abuse · coercive · community impact · poverty trap · financial ruin · exploitation · wage garnishment
subprime
Under top credit tier
- defaultPreset standard option
- foreclosureLender seizes mortgaged property
- bankruptcyLegal status when insolvent
adjustable-rate mortgage · underwater mortgage · delinquency · repossession · judgment · garnishment · unsecured debt · liar loans
bait-and-switch
Fraudulent substitution tactic
- hidden feesConcealed additional costs
- fine printMiniature contractual text
- fraudulentInvolving intentional dishonesty
deceptive marketing · teaser rates · false promises · manipulative · steering · sham · misrepresentation · obfuscation · kickbacks · churning
exorbitant interest
Excessive borrowing fees
- APRYearly borrowing cost
- compound interestReturns on reinvested earnings
- interest rate capsMaximum permissible lending charges
finance charges · penalty fees · points · credit insurance · overcharging · late fees · default rates
- debtdebt, creditor, owe, debtor, lender
- wrongdoingmisconduct, crime, sabotage, crimes, misbehavior
- Consumer Financecredit, credit cards, credit score, credit scores, credit reports
- money mistakesoverspending, impulse buying, gambling debt, debt spiral, no savings
- creditcredit card, credit score, credit limit, credit cards, credit scores
- discriminationracism, systemic discrimination, Jim Crow laws, sexism, racial harassment
predatory lendingfair lending
Nondiscriminatory loan provision
community banking · helpful · kind · giving
predatory lendingcharitable giving
Donating to help others
philanthropy · grants · interest-free loans · low-interest loans · microfinance