[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.fight13.com\/how-to-protect-yourself-from-predatory-lenders#BlogPosting","mainEntityOfPage":"https:\/\/www.fight13.com\/how-to-protect-yourself-from-predatory-lenders","headline":"How to Protect Yourself from Predatory Lenders","name":"How to Protect Yourself from Predatory Lenders","description":"Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state\u2019s Bar Association to get the information of a lawyer who can assist you in...","datePublished":"2019-08-02","dateModified":"2026-05-01","author":{"@type":"Person","@id":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel#Person","name":"Matis Abarbanel","url":"https:\/\/www.fight13.com\/attorneys\/matis-h-abarbanel","identifier":55,"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2025\/09\/matis-abarbanel_avatar-96x96.png","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Loan Lawyers, LLC","logo":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/icon-logo.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/loan-shark.jpg","url":"https:\/\/www.fight13.com\/wp-content\/uploads\/2020\/03\/loan-shark.jpg","height":756,"width":1000},"url":"https:\/\/www.fight13.com\/how-to-protect-yourself-from-predatory-lenders","about":["Credit Card and Debt Defense"],"wordCount":1298,"articleBody":"Loan Lawyers, LLC is licensed to practice law in the state of Florida. If you have a legal matter that you would like to discuss and you are NOT located in Florida, please contact your state\u2019s Bar Association to get the information of a lawyer who can assist you in your home state. Thank you.Predatory lending is any loan agreement that benefits the lender and ignores the borrower\u2019s ability, or inability, to repay the debt. These lending tactics attempt to take advantage of a borrower\u2019s financial hardship, or lack of understanding about a loan and its terms. Although Florida has many anti-predatory lending laws, such as the Fair Lending Act, lenders sometimes still engage in predatory practices. Unfortunately, lenders often use loopholes in the law to continue these practices. Below are the most common predatory lending practices, and how to protect yourself from them.Protecting Yourself from Predatory LendersBecause lenders are sometimes so deceptive in their tactics, they can be difficult to spot. However, understanding what a lender should and shouldn\u2019t do can help you protect yourself from predatory lenders. Knowing this can save you from a drop in your credit score, or even foreclosure. When speaking to lenders about a loan, watch for lenders who:Solicit: Typically if you want a loan, you have to go to a lender and ask for one. If lenders are leaving flyers in your mailbox, or sending you emails about new offers, particularly if you\u2019ve never heard of the lender before, they\u2019re likely a predatory lender. Reputable lenders simply don\u2019t operate this way.Make promises: Lenders shouldn\u2019t promise you\u2019ll get a loan without even considering your credit score, income, and your ability to repay. Most lenders are very careful not to make promises or guarantees. Watch out for the ones that do.Rush you to sign papers: A loan, particularly large loans such as mortgages, is a big commitment. Reputable lenders will understand that you need time to review the paperwork and make a decision before signing a contract. If you feel as though a lender is rushing you, or not properly answering questions about terms you don\u2019t understand, you shouldn\u2019t sign anything. There\u2019s a good chance the paperwork includes clauses or provisions that will hurt you later.Exorbitant interest rates or fees: Beware of any interest rates that seem exceedingly high or fees that are hidden within the contract. If you\u2019re offered products such as loan insurance, decline them. If the lender doesn\u2019t mention these products, look for them within the contract. If they have been included, ask your lender to remove it or, better yet, find a more reputable lender.Incomplete papers: When lenders act particularly unscrupulously, they may even leave areas of the agreement blank. After you have signed them, they will fill those areas in with whatever terms they want, even though you didn\u2019t agree to them. Do not sign any incomplete paperwork. If a lender presents you with an incomplete contract, do not work with them. They will likely try predatory practices that will cost you in the future.For those unfamiliar with loans, particularly mortgages, it\u2019s important to research mortgage rates and common fees and language included in a mortgage contract. By doing so, it becomes much easier to spot when a lender has deviated from what is reasonable, and to protect yourself against predatory practices.Types of Predatory Lending PracticesThere is some debate as to what constitutes predatory lending, particularly when a matter has progressed so far that it\u2019s taken to court. However, some common types of predatory lending create financial hardship for individuals, and could even result in low credit scores or worse \u2013 foreclosure on a home. These practices include:False disclosure: A lender may hide the true cost of a loan or the risks associated with it. Sometimes, a lender will change the terms of the loan after the initial offer.High credit rates: All lenders will charge a high credit rate at some point. For example, when a borrower\u2019s low credit score requires it. Predatory lenders though, will take advantage of this and charge exponential interest rates to high-risk lenders.Inflated and hidden fees: Like interest rates, predatory lenders will hide high fees for things such as closing costs and appraisals inside the fine print. These fees are not only hidden, but they\u2019re also much higher than what reputable lenders charge.Loan packing: This practice involves adding products to a loan the customer doesn\u2019t need and without their knowledge. For example, adding credit insurance that pays off the loan if a borrower dies is a common product associated with loan packing.Unfair refinancing: Also sometimes called loan flipping, this is when a lender convinces a borrower to refinance their loan. When the borrower does, they unknowingly enter into a loan with additional fees and higher interest rates.Home equity-based lending: There are times when homeowners tap into the equity in their homes, and it can be very beneficial. When a lender convinces a borrower to tap into that equity, though, without regard of the borrower\u2019s ability to repay the loan, it\u2019s an unfair practice.Reverse redlining: Sometimes, lenders\u2013typically not conventional banks\u2013will target a low-income neighborhood. They will promote loans and borrowing solutions, charging everyone higher rates and inflated fees, regardless of a person\u2019s income, credit history, or ability to repay the loan.Unfair prepayment penalties: Many lenders charge prepayment penalties, particularly on mortgages. However, these fees must be reasonable and appropriate. When they are not, it is considered a predatory lending practice.Immunity clause: Lenders will sometimes include language in the loan agreement that bars borrowers from taking legal action against the lender for fraud or misrepresentation. They include this clause so that when a borrower realizes they\u2019ve been taken advantage of, they have no recourse.Unfortunately, these are just a few of the most common predatory lending practices. The good news is that there are steps borrowers can take to protect themselves.Have You Been the Victim of Predatory Lending Practices? Call Our Florida Foreclosure Defense Lawyers TodayWhen lenders have not acted in good faith and have engaged in predatory lending practices, this can provide a defense against foreclosure. At Loan Lawyers, we are the Fort Lauderdale foreclosure defense attorneys who can help with your case, and possibly keep you in your home. Call us today at (954) 523-HELP (4357) or contact us online for your free consultation.Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation to see how we may be able to help you.About the AuthorLatest PostsMatis AbarbanelMatis Abarbanel is the founding partner and senior attorney at Loan Lawyers in South Florida. He focuses his practice on consumer rights, helping homeowners navigate issues such as foreclosure and financial hardship. Matis also brings a wealth of experience from his previous work in personal injury law. As a devout Chasidic Jew, he is committed to making a positive impact in his community and dedicates his efforts to charitable initiatives through his non-profit organization, The Center, which aids at-risk Jewish youth. Matis actively serves clients across South Florida and is passionate about empowering individuals to secure their rights and achieve a better future.When Foreclosure Errors by Lenders Lead to Legal Remedies for Homeowners in Fort LauderdaleWhat Homeowners Can Do When Loan Documents Contain Forged or Altered SignaturesUnderstanding Florida\u2019s Debt Forgiveness Programs and IRS Rules"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"How to Protect Yourself from Predatory Lenders","item":"https:\/\/www.fight13.com\/how-to-protect-yourself-from-predatory-lenders#breadcrumbitem"}]}]