Extortionate-interest

Extortionate-interest refers to excessively high or unreasonable interest rates charged on loans or financial agreements. It implies a predatory lending practice where the lender takes advantage of a borrower's vulnerability, financial need, or lack of bargaining power. This practice often leads to a cycle of debt and financial hardship for the borrower. It is generally considered unethical and, in many jurisdictions, illegal, with regulations in place to protect consumers from such practices.

Extortionate-interest meaning with examples

• Maria was desperate for a loan to cover her medical bills. A loan shark offered her the money, but with extortionate-interest rates that quickly ballooned her debt. She struggled to make payments, and the high interest rates nearly ruined her financially. She eventually declared bankruptcy.
• The small business owner took out a high-risk loan, unaware of the fine print including extortionate-interest fees. Within months, the business couldn't keep up with the payments, and the lender seized their assets, putting the business at risk.
• The investigation revealed that the payday loan company was consistently charging customers extortionate-interest rates, exploiting low-income individuals and families who were often struggling financially and had limited options.
• Critics argued that the credit card company's 'rewards program' came at the expense of users. The program's rewards were negated by their extortionate-interest charges on unpaid balances, making it difficult to achieve savings.