Predatory Lending
Although there is no formal definition for “predatory lending,” it is used as a catch-all term for illegal or deceptive lending practices. When searching for a loan provider, you should investigate lenders for any unfair or abusive loan terms before agreeing. In order to help you identify “predatory lenders” we have compiled some frequent warning signs.
If you or someone you know is experiencing financial difficulties because of involvement with predatory lenders, bankruptcy may be the best option for recovery. Contact the West Palm Beach bankruptcy attorneys at the law office of Eric N. Klein & Associates, P.A. to speak with a professional about the details of your situation. Call 561-353-2800 today to schedule a free initial consultation.
How to Recognize Predatory Lenders
One common trait most predatory lenders have in common is an unreasonably high interest rate. Typically, predatory lenders offer deceptive loans that trick borrowers into signing unfair or abusive term agreements. Examples of predatory lending include payday loans or advancements, as well as overdraft loans.
Generally speaking, predatory lenders target the most vulnerable categories of people, such as minorities who do not speak much English, the very young, or the elderly. These people are more likely to sign agreements without fully understanding the repercussions.
Some practices which are considered abusive or unfair include:
- Risk-based pricing
- Single premium credit insurance
- Failure to reveal negotiable loan price
- Failure to disclose terms and conditions
- Short-term loans with high fees
- Servicing agent and securitization abuses
Contact Us
If you have been the victim of predatory lending, you might want to consider filing for bankruptcy to get back on your feet. Contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800 to discuss your legal options.
