What do you think about predatory lending?

Question

Do you think it is something that the government should be involved in or is it a cut and dry case of "there is a sucker born every minute"and if you dont have the brains to read your loan agreements then you get what you signed for?

Answer 1

when you make 30K per year do you really think you deserve a $800,000.00 loan? Please..... Someone one of these days has to be responsible for themselves! Hell we signed to join the Army and COULD DIE, Nobody is shooting you if you cannot make a payment (yet).

Answer 2

Predatory lending is the practice of a lender deceptively convincing 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. Although predatory lenders are most likely to target the less educated, racial minorities and the elderly, victims of predatory lending are represented across all demographics.

Predatory lending often occurs on loans backed by some kind of collateral, such as a car or house, so that if the borrower defaults on payment, or even if he doesn't default, the lender can repossess or foreclose and profit by selling the repossessed or foreclosed property. Other types of lending sometimes also referred to as predatory include payday loans, credit cards or other forms of consumer debt, and overdraft loans, when the interest rates are considered unreasonably high.

Over the last several years, our nation has made enormous progress in expanding access to capital for previously under served borrowers. Despite this progress, however, too many families are suffering today because of a growing incidence of abusive practices in a segment of the mortgage lending market. Predatory mortgage lending practices strip borrowers of home equity and threaten families with foreclosure, destabilizing the very communities that are beginning to enjoy the fruits of our nation’s economic success.

Answer 3

There should be special protections for the elderly and people who are mentally disabled. As far as the other suckers - yeah - many people just want to justify lifestyles they can't afford, and if they're too dumb to read an agreement (or sign something you don't understand) - and/or they don't care... everyone knows how bad payday loans and other loans like that are - it's in the news constantly.

Answer 4

i hate it when people copy and paste from wikipedia to here. Its so cheeseball. Thumbs down for you!

Everything has a predatory practice involved somewhere in the chain. Its just a matter of who gets caught and when.

You seriously cant be expected to read your loan application. Its a huge stack of papers all with little tiny print all in lawyerspeak that the common man cant understand.

Answer 5

I think in thee case of predatory lending there has to be some goverment involvement ,as it has become greed based and has ruined the lives and dreams of thousands of people.

Answer 6

Predatory Lenders are the scum of the earth and should be removed from Planet Earth.... They intentionally set out to steal and take advantage of the Elderly and sickly people of America... They should all be hung by the neck until dead......