Predatory lending

Advanced 🏠 Real Estate

Definition

Lending practices that exploit borrowers through high rates, hidden fees, or complex terms—basically, the lender is the wolf and you're in an increasingly questionable deal.

Example Usage

The subprime lender's predatory terms seemed aggressive until we realized we'd pay $200,000 in interest on a $150,000 loan.

Origin

Modern term describing aggressive lending designed to trap borrowers in unsustainable debt

Fun Fact

Predatory lending was a major factor in the 2008 housing crisis; regulations like Dodd-Frank were supposed to prevent it (debatably).

Source: Lending Ethics and Regulation

Translate This Term

See “Predatory lending” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

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