To answer this, you must first define predatory lending. Most federal laws that target predatory lenders focus on payday loans. These are short-term loans with very high interest rates that the borrower promises to pay back using their next paycheck. The problem is that more than 80% of borrowers aren’t able to pay back the loan under those terms, which creates a balloon penalty that makes the loan even more expensive and begins a debt cycle that can extend for months or years. And it’s all legal. Well, in most states. Laws that protect borrowers from these types of debt have recently been repealed, opening the door for more lenders to enter the space. The hope is that opening the marketplace to new lenders will create competition that lowers interest rates — but that’s all speculation at this time. Still, some laws aim to help consumers get access to fair and equal lines of credit. Among them are the Equal Credit Opportunity Act (ECOA), which makes it illegal for a lender to impose a higher interest rate or higher fees based on a person’s race, religion, sex, age, marital status, source of income, or national origin.