Predatory lendingis broadly defined by the FDIC as “imposing unfair and abusive loan terms on borrowers." Predatory lending often targets groups with less access to and understanding of more traditional forms of financing. Predatory lenders can charge unreasonably high-interest rates and require signif...
Fewer informal lenders are operating in treatment villages, and those who do charge lower interest rates. While these credit market impacts could lead to substantial improvements in economic well-being over time, the short-run impact of the program on such outcomes is modest....
Currently, there is a EU proposal for a Consumer Credit Directive, which would liberalize the credit market, placing no limit both on the amount of loans and on the applicable interest rates. The Directive introduces the principle of home country control . It authorizes UK-based finance ...