Predatory lending involves high interest rates and title loans.

Question

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Predatory lending is a term used to describe lending practices that take advantage of vulnerable borrowers by offering loans with high interest rates, fees, and terms that are difficult to understand. Title loans, which involve using a borrower's car as collateral, are a common example of predatory lending. The interest rates on these loans can be as high as 300% or more, making it difficult for borrowers to pay them back and putting them at risk of losing their vehicles.

Predatory Lending Involves High Interest Rates and Title Loans