What is Predatory Lending?

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Welcome to the online presentation, What is Predatory Lending?. Predatory lenders do just what the name implies. They exploit borrowers, especially vulnerable groups such as the elderly, minorities, and people with poor credit histories, by charging high interest and excessive fees. Predatory lenders take thousands of dollars from borrowers by charging excessive amounts. Many use deceptive sales practices to trick people into getting loans that they cannot afford to repay. The result can be foreclosure and homelessness. Predatory lending has recently become an increasing problem nationwide. Thus, the federal government has responded with increased regulatory enforcement and educational campaigns. Predatory lenders include both mortgage lenders that prey on homeowners and non-mortgage consumer lenders that offer both secured and unsecured loans.

Author:
Barbara O'Neill, Ph.D., CFP (Extension Specialist in Financial Resource Management, Rutgers Cooperative Extension)

Duration:
17 minutes, 1 seconds

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