Household HSBC Watch

Subprime lenders, most recently Ameriquest Mortgage Co., have also been targeted in multistate investigations by attorneys general. To compensate for the greater likelihood customers will default, subprime loans have higher fees and interest rates than those traditional loans. But state officials and borrowers allege that some subprime lenders charge excessive fees or rates, taking advantage of the fact the borrowers have fewer options than people with good credit. “Sub-prime becomes predatory when market imperatives no longer dictate rates and fees, replaced instead by excesses because predators think they found a way to get away with it” said consumer advocates at Household - HSBC Watch.