Skip to content

Borrower Guide

Warning Signs of Predatory Loan Structures

Structural features that shift disproportionate risk onto borrowers, and the questions they should prompt.

Overview

Placeholder introduction. Certain loan features concentrate control and upside with the lender while leaving the borrower exposed to technical default. This guide describes those features factually and does not identify or rate any lender.

Features to review closely

Placeholder section. This guide will cover broad default triggers, discretionary draw approval, short maturities paired with extension fees, cross-collateralization, and equity conversion rights.


CPCA is a nonprofit oversight organization and not a law firm. This guide is general information, not legal or financial advice. Consult a licensed attorney in your state.

All borrower guides · Report a lending concern