Predatory Lending
Categories: Bonds, Econ, Muni Bonds, Ethics/Morals
Sounds scary... and it is. Predatory lending comes in the form of any unethical practices, promises, or ads that lenders use to get you to try their products.
For example, lenders may tell you that a loan deal is only good if you sign RIGHT NOW, or they may offer an interest rate that is just way too good to be true. Then they charge hidden fees, refinance loans without your permission, or start charging you more than you had agreed to.
There are all kinds of laws and rules that are meant to stamp out predatory lending, but like all predators, loan sharks and other unethical types are always coming up with new ways to get around obstacles.