What is it called when a lender exploits customers by offering poor loan terms?

The term that describes the unethical practice of lenders exploiting customers by offering poor loan terms is predatory lending. This practice often involves misleading borrowers, imposing excessive fees, or exploiting vulnerable populations through high-interest rates and unfavorable conditions. Predatory lending can lead to financial hardship for borrowers, as they may find themselves trapped in cycles of debt due to loans they cannot afford to repay.

Understanding this concept is crucial in real estate risk management because it highlights the importance of ethical lending practices and the need for regulations to protect consumers from exploitation. It also emphasizes the responsibility of borrowers to be informed about the terms of their loans and the potential risks associated with them. Other terms like actuary lending, subprime lending, and profitable lending do not accurately capture the exploitative nature of predatory lending and are often associated with different aspects of financing and risk assessment.