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There is the occasional unscrupulous loan officer who misrepresents his or her product to make a buck. He or she may try to sell you something you don't understand, such as a product with a great introductory rate ("teaser rate") that later skyrockets into a massive liability. He or she may offer you what seems to be a competetive loan rate, which suddenly doubles once you add fees and administrative costs and his or her commission. This is predatory lending. You are a victim of predatory lending if you could not (or did not) understand what you were agreeing to, and a loan officer took advantage of that. There are legal recourses for this, including the loan officer losing his or her license to sell financial products. You are NOT a victim of predatory lending because you pay a high interest rate, you decide now that you can't handle the debt you took on, or you saw an ad on TV by a sleazy trial lawyer promising to make you a "victim" in a big lawsuit.

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2008-10-31 08:12:35
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Q: How do you know if you are a victim of predatory lending?
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If you feel you are a victim of predatory lending then by all means it should get audited

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Payday loans come under the heading of "predatory lending." There are interesting articles at AND You can go to . The article advices on the dangers of payday loans.

Who is David Scoll?

Former Philadelphia, PA bankruptcy law judge specializing in bankruptcy related to predatory lending violations.

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Predatory lending is when a real estate agent convinces a borrower that they should obtain a loan. The loan usually has unfair and fluctuating rates and they prey on the borrowers need and desperation even if the borrower does not have the means to repay the loan.

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