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Are you a victim if the lender willingly knows you dont have the right amount off finances to be able to pay your debts?



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'Right amount of finances' is not a clearly defined term.

If you qualify for a loan based on the financial institution's guidelines, the lender must approve the loan. That is true even if the lender personally thinks you cannot handle it. For example, if you eat out a lot, buy all the latest toys and gadgets, and wear clothes that are out of your budget, you may not be able to pay your debts even if you have enough income per the lender's guidelines.

Clearly we cannot have individual lenders making individual decisions about borrowers based on anything other than the guidelines of their financial institution for income levels, credit rating and other objective criteria.

If you understood the terms of the loan and agreed to them, you are not a victim. You are a person who cannot meet his/her obligations. You are a person who made a mistake. That is not an insult, it is a description.

If the lender knows and can prove that you lied about your income, that would be different. If the lender tells you to lie about your income, that would be fraud. But if you lied about your income, you also committed fraud.

The lender discloses the terms of the loan and follows the lending guidelines of his/her financial institution. As the borrower, you understand the terms of the loan and make an independent decision as to whether you can pay it back. Once you have done so, and signed the documents, you have the sole responsibility to make the payments as agreed.