This module describes various predatory practices by businesses. Using scholarly resources, describe some specific examples of predatory practices. Should the debtor or borrower bear some responsibility, at least in some cases? Explain why or why not? Predatory business practice is an unethical and predatory approach that a company takes to control the market or maximize profit. There are several predatory practices in play today such as predatory lending, predatory mortgage servicing, predatory lending, predatory pricing, etc. In this short article, predatory lending will be discussed in detail. Predatory lending: Predatory lending means “imposing unfair loan terms and abusive borrowers” ​​(No Author, 2006). Borrowers are tricked into agreeing to loan terms that are difficult to defend. Predatory Lending in Home Mortgages: The whole process of predatory lending in home mortgages begins with subprime lending, a type of mortgage given to borrowers with poor credit card ratings. These borrowers are more likely to default on a loan and lenders use this as a reason to charge them higher interest rates based on their credit risk assessment and in some cases lenders charge an excessive interest rate compared to to that requested. Because of their history of defaults and poor credit history, these borrowers only qualify for subprime loans. Predatory lenders sometimes inflate property values ​​to qualify borrowers with poor credit histories. Subprime lending, given without any regard to the borrower's ability to repay, typically uses the home as collateral. In cases where monthly mortgage payments exceeded the debtor's monthly income, foreclosure on the property was inevitable. Another type of abusive tactic used by lenders is cal...... middle of paper ...... Deposit Insurance Corporation ( FDIC), Department of Housing and Urban Development (HUD) and Office for Savings Supervision (OTS) have led and funded initiatives to raise consumer awareness of predatory lending practices. Government strategies coupled with consumer awareness are the only way to combat predatory lending practices pursued by unscrupulous lenders. References: No author. Federal Deposit Insurance Company, Audit Office. (2006). FDIC Challenges and Efforts Related to (06-011). Retrieved from the FDIC Public Information Center website: http://www.fdicoig.gov/reports06/06-011-508.shtmlLarson, M.D. (2001, July 26). Lenders abandon single premium credit insurance. Retrieved from http://www.bankrate.com/brm/news/mtg/20010726a.aspPeterson, C. L. (2006, September 7). Predatory structured finance. Retrieved from http://www.doanlaw.com/pdf/Securitization.pdf