Predatory Lenders Lurking on Websites and Social Media Channels

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Predatory Lenders Lurking on Websites 

and Social Media Channels

Predatory lenders are lurking on websites and social media channels. This is problematic because of the unawareness of the booming online technology from nonfinancial banks and predatory lenders intended to mislead young adults with low- to moderate-income (LMI) high-cost loans. 

Researchers have proven that "the financial crisis exposed the potentially unsavory results of the interaction between LMI households and alternative and mainstream financial institutions. "Many LMI income households paid for high-cost financial products, were overleveraged, and had no reserve for unforeseen "economic instability." (Barr) Online financial tech companies like Affirm, Klarna, PayPal Credit, and AfterPay charge high late fees and encourage LMI individuals to spend more than they can afford." Financial tech companies make it easy for LMI individuals to finance purchases. (Renzulli) Many LMI individuals shopping online are inclined to execute an agreement without realizing the ramifications of the high cost. Research has proven that LMI young adults must be aware of absorbent high-cost products to avoid falling prey to predatory lenders. Always stay vigilant.

#KNOWYOURLENDER, #STAYVIGILANT, #GETBANKED

Written by: Monée Boswell

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Works Cited


1. Barr, Michael S. "No Slack: The Financial Lives of Low-income Americans." Brookings Institution Press, 2012.
     https://www.brookings.edu/book/no-slack           

2. Renzulli, Kerri Anne "Deal or No Deal?" Newsweek Global. 2022; 178(5):10-14.

      https://pocketmags.com/newsweek-europe-magazine/february-18-        2022/articles/1107667/deal-or-no-%20%20%20%20%20%20%20%20%20%20%20deal

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