PREDATORY LENDING
Promoting Financial Literacy
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( TVY[NHNL SLUKLY ZVSPJP[LK H OVTLV^ULY MVY H ZLJVUK TVY[NHNL [V JVUZVSPKH[L OPZ KLI[ ;OL UL^ SVHU had a 13.4% interest and a monthly payment of $612, leaving him with a total housing payment of $1,257 a month. At the time that he received the loan, he was working at a plastic company and had gross LHYUPUNZ VM H TVU[O TLHUPUN [OH[ OPZ OV\ZPUN WH`TLU[ ^HZ VM OPZ PUJVTL (Z ^V\SK IL L_WLJ[LK OL OHZ MHSSLU ILOPUK VU IV[O VM OPZ WH`TLU[Z HUK PZ MHJPUN MVYLJSVZ\YL
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( OVTLV^ULY ^P[O NVVK JYLKP[ YLJLP]LK H SVHU [OYV\NO H TVY[NHNL IYVRLY 6U [OL SVHU ^OPJO OHK H Ä_LK PU[LYLZ[ YH[L VM MVY [^V `LHYZ HUK [OLU ILJHTL HKQ\Z[HISL [OL IYVRLY JOHYNLK [OL IVYYV^LY H VYPNPUH[PVU MLL HUK [OLU [OL SLUKLY JOHYNLK [OL IVYYV^LY HUV[OLY MVY WYVJLZZPUN MLLZ 0U HKKP[PVU [OL SLUKLY WHPK [OL IYVRLY H `PLSK ZWYLHK WYLTP\T VM ¶ VM [OL SVHU HTV\U[ ¶ MVY getting the homeowner to accept this loan.
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