Predatory lending in the vast majority of developed economies other than the US:
Adjustable rate home mortgages being issued to financially illeterate people without extremely clear and emphasized risks and disclosures.
Same thing with HELOCs.
Vehicles loans with rates over 15%.
… subprime lending basically just is predatory lending that we don’t legally call predatory lending.
Oh and then of course there is the entire system of Private Credit Shadow Banks who issue trillions in loans to all kinds of business entities, who basically aren’t required to do anywhere near the level of accounting rigor or transparency that actual banks do.
No, it’s not. Financing is a great tool, and used wisely and with knowledge of interest rates and total cost, can elevate you quite a bit in life.
This however is predatory lending, and it should not be used ever.
Predatory lending in the vast majority of developed economies other than the US:
Adjustable rate home mortgages being issued to financially illeterate people without extremely clear and emphasized risks and disclosures.
Same thing with HELOCs.
Vehicles loans with rates over 15%.
… subprime lending basically just is predatory lending that we don’t legally call predatory lending.
Oh and then of course there is the entire system of Private Credit Shadow Banks who issue trillions in loans to all kinds of business entities, who basically aren’t required to do anywhere near the level of accounting rigor or transparency that actual banks do.
We just basically don’t regulate them.