Predatory Lending Is Wrong
Predatory lending is a real and serious problem. Lenders are not legalized confidence men, but have a fiduciary duty to look after their clients’ interests. Predatory lenders are those that have abrogated that trust, and they are, unfortunately, the norm. A borrower has an explicit right to expect that a lender will be honest and forthright in his dealings, and that the lender will make a conscious effort to make a loan on terms that are most advantageous to the borrower.
When this fiduciary duty is not kept, bad things happen. It is a crime, just like a doctor performing unnecessary surgery or a lawyer billing unnecessary hours to pump up their fees.
–These comments are in response to some interesting thoughts about predatory lending by a fellow blogger at the Council of Nicea. Since he foolishly allows only registered Google users to comment (and I trust Google about as far as I can throw ‘em), I have posted my thoughts on predatory lending here instead.
September 4th, 2007 at 10:34
Well-said! Thank you!