Predatory Lending

What is predatory lending?
Sometimes mortgage companies try to take advantage of certain kinds of homeowners or people buying a home. This is called predatory lending. And it is against the law.

You might be a victim of this kind of lending if you are:

  • Elderly
  • Low income
  • Immigrant or ethnic minority
  • Not very good at managing your money
  • Do not have a good credit history

What does a predatory lender do?
Predatory lending uses unfair or dishonest practices, such as:

  • Home improvement scams
  • Setting up loan payments the company knows you cannot afford
  • Giving loans to people with a mental disability, while knowing the person does not understand the loan
  • Forging the person’s signature

Does the law protect me?
Yes. A law, called the Fair Housing Act, covers:

  • The home you rent or own
  • Your mortgage
  • Insurance
  • Other housing concerns

The law says you cannot be treated differently because or your:

  • Race or color
  • Religion
  • Nationality
  • Sex or gender

To find out more about the law and predatory lending, click on a link: