Predatory Lending Tactics

The following lending tactics can be considered predatory:

1. High-pressure and misleading sales pitches.
2. Excessive fees and interest rates beyond what is necessary to cover the risk and make a profit.
3. “Packing on” or requiring unnecessary products that are included in the loan balance.
4. Large prepayment penalties that are intended to trap the borrower in an unfavorable or unaffordable loan.
5. Payments that increase over time and have unrealistic repayment terms.
6. Loan flipping or frequent refinancing with fees folded into the loan balance that results in rising loan balances and decreases the equity in your loan.
7. Aggressive and abusive collection practices.