Investor Glossary-predatory lendingInvestor Glossary-predatory lendingInvestor Glossary-predatory lendingInvestor Glossary-predatory lendingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Predatory Lending

The HTML to link to this page
 

Predatory lending refers to practices used by certain lenders do to give out loans. With predatory lending, a lender attempts to deceive borrowers by giving them a loan they will most likely not be able to repay. Predatory lending includes tactics such unusually high and hidden fees. Although anybody can be a victim of predatory lending, predatory lenders attempt to target borrowers that will have difficulties understanding complicated terms and conditions, therefore making it easier to deceive them. Lenders benefit from predatory lending by repossessing and then reselling goods put by borrowers as collateral or by collecting on high hidden fees included as part of the loan. Predatory lending can result in foreclosure or significant loss of equity in the case of a mortgage loan. Depending on the situation, predatory lending is not always illegal but many states and agencies have taken actions to inform borrowers about predatory lending to help them recognize and avoid predatory lending tactics.



Rate this Predatory Lending definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, Key Rate Duration, implied volatility, 144a, required rate of return, class C shares, open position, Zero Cost Collar, ex-dividend date, retained earnings, LIBOR, stock split, EBITDA, ex-dividend, limit order, balance sheet, FTSE, deferred tax, liquidity ratio, 1031 exchange, per diem, deferred revenue, reverse mortgage, cancelled check, stock market close, margin rate, current ratio, diluted share, dividends payable, real GDP, in escrow, risk management, APR, irrevocable trust, command economy, quality assurance, wholly-owned subsidiary, 1035 exchange, option premium, VIX, covered put, labor relations, average price per share, inflation, phantom income, minority interest, 401a, debt service coverage, annual return


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use