What are predatory lending practices, why did it happen, who were the victims, what is being done to stop this practice

Some guidance on your written assignment regarding Predatory Lending.

Definition: Predatory Lending is defined as intentionally placing consumers in loan products with significantly unfavorable terms and/ or higher costs than loans offered to similarly qualified customers in the region for the primary purpose of enriching the loan originator along with little or no regard for the costs to the borrower.

Caution: Just because a loan carries a perceived high interest rate or is identified as a ‘sub-prime’ loan, does not indicate it is predatory.

For your paper, please include the following:

Define predatory lending in your OWN words.
Identify tactics that Predators use
Discuss examples of prohibited behavior (one is: loan flipping)
Identify who the ‘targets’ are for Predators
Discuss solutions for consumers to avoid falling victim to Predators
What steps the authorities are taking to stop this unfair practice

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