Inevitably, the booming subprime area attracted sharp operators specializing in abusive practices, including frequent loan refinancings, also known as flipping, balloon payments and lump sum credit life insurance financed from loan proceeds. Their targets are the least sophisticated among us, including senior citizens. That's life, some may say. If the bad apples are exposed and gotten rid of, things will ultimately be fine. Orthodox bankers look askance at predatory activity as well, but quickly add their own complaints.
Predatory lending is wrong.
It's taking advantage of people, and that certainly speaks for itself. On the other hand, Lipkin decries moral slippage among borrowers. A credit rating is an asset and a privilege. This is really something that our educational system ought to stress more. They make it seem honorable to walk away from your debts.