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Predatory lending is the unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. Even though there are no laws against many of the specific practices commonly identified as predatory, various federal agencies use the term for many illegal activities in the loan industry.

Predatory lenders use deceptive means to convince borrowers to agree to unfair and abusive loan terms or systematically violating those terms in ways that make it difficult for the borrower to defend against. Other types of predatory lending include: payday loans, certain types of credit cards, mainly subprime or other forms of consumer debt, and overdraft loans, when the interest rates are considered unreasonably high. Although predatory lenders are most likely to target the less educated, the poor, racial minorities, and the elderly, victims of predatory lending are represented across all demographics. 

In these difficult financial times, there are very many cases of predatory lending that are taking place in many countries especially the United States. It is about time a solution is sought since the means of lending people money do not benefit them in the long run and end up putting them in more debts.

Many people have lost their homes since they have not been able to pay off debts to these predatory lenders. Falling into bankruptcy is one of the most feared things in the American population and predatory lending is mostly the final choice for many. Weighing the costs of predatory lending before actually delving into it is the best thing to do, for everyone.   

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