Anti-Predatory Lending Law

The North Carolina Anti-Predatory Lending Law reads off


The term "predatory lending" refers to a set of abusive lending

practices concentrated in the subprime sector. These include making

unaffordable loans based on the assets of the borrower rather than on the

borrower?s ability to repay an obligation; inducing a borrower to refinance a

loan, often repeatedly, in order to charge high points and fees on the refinance

("loan flipping"); and engaging in fraud and deception to conceal from an

unsuspecting or unsophisticated borrower the true nature of the loan obligation

(Gramlich 2000). For service providers, regulators, and legislators, dealing

with predatory lending requires a balancing act, because curbing these

practices may curtail credit to some borrowers. Some borrowers may be so

uncreditworthy that they can only get credit under conditions that are

considered predatory. Historically, however, government has acted to curb

abusive lending practices even if the regulations limit the flow of certain kinds

of credit.

Predatory lending can have a devastating effect on families. Loans made without regard to a borrower?s repayment ability are likely to erode the borrower?s home equity position. This is especially true for minority and lowincome families, for whom home equity comprises over 60 percent of their net worth (State of the Nation?s Housing 2002). In addition, most older homeowners depend on equity to supplement other savings after retirement (Quercia 1997). The importance of home equity for these financially unsophisticated or vulnerable populations makes them potential targets of predatory practices (Carr and Kolluri 2001).

Can I use this info above to fight a loan made to me?