Guard Against Predatory Lending Practices

Guard Against Predatory Lending Practices

Predatory lending occurs when companies offer loan products using certain marketing tactics, abusive collection tactics, and loan terms that deceive and exploit borrowers. Predatory loans are usually more expensive than other loans or have repayment terms many people cannot meet.

 

The best ways to guard against being involved in a predatory loan transaction is to be a good consumer by:

  • Dealing with reputable loan providers
  • Shopping around with several loan providers of your choice to obtain the best terms
  • Reading and understanding all terms and conditions of an offered loan or asking questions until you are sure you understand
  • Ensuring you can afford and make payments according to the loan terms

 

Guard Against Predatory Lending Practices

Guard Against Predatory Lending Practices

Predatory lending occurs when companies offer loan products using certain marketing tactics, abusive collection tactics, and loan terms that deceive and exploit borrowers. Predatory loans are usually more expensive than other loans or have repayment terms many people cannot meet.

 

The best ways to guard against being involved in a predatory loan transaction is to be a good consumer by:

  • Dealing with reputable loan providers
  • Shopping around with several loan providers of your choice to obtain the best terms
  • Reading and understanding all terms and conditions of an offered loan or asking questions until you are sure you understand
  • Ensuring you can afford and make payments according to the loan terms