Predatory lending is a practice on the part of the subprime lending market whereby lenders take advantage of less sophisticated consumers or those who are desperate for funds by using the lenders' superior bargaining positions to obtain credit terms that go well beyond compensating them for their risk.

Question

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Predatory lending is a well-known practice in the subprime lending market where lenders employ deceitful, exploitative, or unfair loan terms, often leading to loan default or financial collapse for the borrower.

Predatory Lending Is a Practice on the Part of the Subprime