Who is protected with an anti-predatory lending law?Answer:
Although certain anti-predatory lending law applies to lenders and protects borrowers in general, in the case of minorities anti-predatory lending law is tied to civil rights. Statistics shows a tendency for lenders charging African Americans, Asians and Latino US residents higher rates and costliest fees.
Predatory lending has been identified to target certain minorities more than others, thus damaging their credit and forcing foreclosure on their homes.
The anti-predatory lending law in favor of minorities aims to reduce the amount of subprime loans extended to Hispanics and African Americans.
However, this anti-predatory lending law aimed to protect certain minority borrowers hinders lending businesses. Lenders are afraid other borrowers may complain they have been charged higher rates, too. Therefore, lenders will try to stop that human rights ordinance as they claim it is not specific enough and exposes them to huge financial risk.
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