by #RamendaCyrus in @theprospect:
"Predatory loans rely on an information advantage. Lenders know how to manipulate the terms of the loan to keep the customer borrowing more and more. They can bury the most important provisions in financial jargon, leaving the borrower unaware of what they are getting into. Often, people are desperate, seemingly out of options, and willing to accept pretty much anything. That enables the remarkably high interest rates, hidden fees, and constant rollovers into new loans accruing more interest that can trap people in a web of financial stress."
https://prospect.org/economy/2023-06-05-predatory-lendings-prey-of-color/
#ramendacyrus #predatoryloans #loans #lenders #hiddenfees #debt #racism