U.S. Department of Housing and Urban Development | 451 7th Street S.W., Washington, DC 20410 Telephone: (202) 708-1112 TTY: (202) 708-1455 Predatory payday and deposit advance lending is a major area of concern for consumers across the country. Although there have been many policy advances in this area over the past decade, predatory. As our contribution to the ongoing discussion America is having around racial inequality, here is another post in our Financial Discrimination, Access, and Equality series. We will continue to share information about how to recognize and help combat financial discrimination, so please come back to read future posts. What is Predatory Lending? Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn’t need, doesn’t want or can’t afford. Predatory lending refers to unethical practices conducted by lending organizations during a loan origination process that are unfair, deceptive, or fraudulent. While there are no internationally agreed legal definitions for predatory lending, a 2006 audit report from the office of inspector general of the US Federal Deposit Insurance Corporation (FDIC) broadly defines predatory lending as. As the misdeeds of major financial institutions continue to make the headlines, it should be no surprise to find out the many ways people have been cheated by financial institutions at the community level. Sharks are well-known universal predators. They are both dreaded and admired, though, more the former, to be precise. They live in the ocean and hunt and they are a part of the food chain. As any other predators they are likely to get their pray unprepared for the attack and there are enough of such ones.One thing that is hard to understand is that there are many other predators with teeth and. rent-to-own how stuff works infographics predatory lending payday loans personal finance BLOGS money credit cards debt (Mint/ WallStats) You’re a savvy, savvy consumer. 2 The State of Lending in America and its Impact on U.S. Households P ayday loans—high-cost small loans averaging $350 that usually must be repaid in a single payment after two weeks—are designed to create a long-term debt trap. Navigating the lending process can be a challenging task, whether purchasing, refinancing or upgrading a home, buying a car, or simply needing some extra cash.