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Victims of Predatory Lending
Although predatory loans can impact anybody, some categories of individuals are specially most likely goals for predatory lenders. They consist of:
- Subprime Borrowers. Subprime borrowers are the ones with dismal credit scores – typically not as much as 630 – and low incomes. As noted above, predatory loan providers often deliberately follow these borrowers them higher interest so they can charge.
- Low-Income Families. Low-income families often wind up having to pay more for loans just because their credit is great. Techniques like reverse redlining can force these borrowers into predatory loans, even if they are able to be eligible for a decent loan. Additionally, a 2015 report because of the guts for accountable Lending (CRL) points away that low-income borrowers are especially prone to make use of particular kinds of loans which can be inherently abusive, such as for example pay day loans, vehicle name loans, and bank overdraft costs. Continue reading “Victims of Predatory Lending”