exploitative lending
[/ɪkˈsplɔɪtətɪv ˈlɛndɪŋ/]
nounpl: exploitative lending practices
empréstimo exploratório
1. A lending practice where a lender charges unfairly high interest rates, hidden fees, or predatory terms that disproportionately burden borrowers, often targeting vulnerable populations with limited financial literacy or access to credit
The payday loan company engaged in exploitative lending by charging 400% annual interest rates to low-income workers.
A empresa de empréstimo consignado praticava empréstimo exploratório ao cobrar taxas de juros de 400% ao ano de trabalhadores de baixa renda.
2. Lending that imposes terms designed to trap borrowers in cycles of debt through unfavorable repayment schedules or balloon payments
Consumer advocates warned that the subprime mortgage market enabled exploitative lending practices.
Defensores dos consumidores alertaram que o mercado de hipotecas de alto risco permitia práticas de empréstimo exploratório.
In Brazil, exploitative lending has been a significant concern particularly regarding payday loans (empréstimos consignados) and loan shark operations (agiotagem). The term is frequently used in discussions about consumer protection, banking regulation, and social inequality. In the USA, it gained prominence after the 2008 financial crisis when subprime lending practices were exposed. Both countries have implemented regulations to combat these practices, though enforcement varies.
NYC Slang
getting shylocked
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