The single payment of the premium and the closing costs associated with each loan were of little use to the borrower, but were a great financial benefit to the lender. As the woman had difficulty making her payments, the lender reportedly subjected her to a campaign of abusive debt collection tactics. Minutes after the regional collection office would call her demanding payment, threatening foreclosure, the local branch office would repeat the process. Ultimately, she was forced to seek assistance from the local legal aide society in an effort to keep her home. Indeed, many who fall prey to predatory lenders risk losing their homes in the process.
Predatory lenders define default aggressively.
Rather than working with a borrower who falls behind on a payment, which is the usual banking industry practice, a predatory lender often quickly deems a loan to be in default. As in the case above, loans are often repeatedly refinanced with excessive fees charged each time. Ultimately, abusive collection practices can follow, through repeated telephone calls to customers' homes and places of employment. One such case occurred in a predominantly minority neighborhood in Boston. A woman living in the Dorchester neighborhood of Boston refinanced her mortgage to pay for home improvements.