Predatory Lending is a practice wherein a lender forces you into abusive or unfair lending terms. This can be in the form of high interest rates, unreasonable penalties, and hidden fees that arent part of the mortgage contract. Often, the contract is written out so that its all but impossible for the borrower to get out of it, even when it puts them under financial stress. In fact, studies show that most of todays foreclosures and defaults can be traced to some form of predatory lending.How do I know Im a victim?Many predatory mortgages are so subtle that the borrower doesnt know ituntil things get out of hand and theyre facing foreclosure. But the earlier you take action, the faster you can set things right. Here are some signs that tell you if youre on the losing end of the deal.Excessive fees. Some student loan calculator fees can be financed but are not directly affected by the interest rate. This makes them easy to disguise or manipulate. Fees below 1% of your loan amount are usually no cause for concern, but if they add up to more than 5%, you should get suspicious. Prepayment penalties. Its common for lenders to charge you a penalty if you pay off your loan in advance. This is to make up for the interest they lose by letting you off early. The penalty is considered abusive if its effective for more than three years or is worth more than six months of interest. Yield Spread Premiums. This is a fancy name for the kickbacks your lender pays a broker to steer you into a high-interest or sub-prime loan. If you see this term on your bill, youre probably paying more interest than is legally acceptable. Refinancing offers.