Lenders are finding loopholes to impose fines and fees to consumers who are likely already financially strapped.Extremely high interest rates and quick pay back requirements continue to affect consumers who have to accept loans from predatory lenders. Stricter laws can protect both the consumer and the lender. Stricter laws can help consumers avoid high cost loans and it can help decrease their loses from unpaid loans.
Predatory lending is largely responsible for the deep problems in the housing market, as well as the financial crisis. Lending practices in general should be closely regulated, and anything deemed as predatory should not be allowed. Predatory lending not only affects those who take out the loans, but also affects society as a whole, as we saw in the recent financial crisis.
I think the laws that prevent and punish people and lenders from using fraudulent tactics should be more stricter. I think it was these criminal like tactics that were a big part of the financial crisis in 2008. There should be even more laws imposed on such criminal like activity.
It is always funny listening to people defend predatory lending. They have an article on "Forbes," claiming how these predatory lending laws only hurt the people in need of loans. That is one way to look at it. Just goes to show, people can and will defend anything. Did they ever think, most of these people are probably worse off after they take out one of these the loan than they were before the loan. This type of thinking just shows that predatory lending laws are not strict enough.
No, I do not believe that predatory lending laws are not strict enough. If they were sufficient the actions that are still happening would be few and far between. When those that are lending are held accountable they are more likely not to scam the unsuspecting consumer into loans that are obviously unethical.