The Federal Reserve is holding public hearings on whether the government should impose stronger rules to crack down on abusive lending tactics that take advantage of unwary borrowers. According to the Fed, such unscrupulous lenders typically prey on elderly and unsophisticated homeowners.

The predatory lending issue is receiving increasing coverage as the number so-called subprime loans grow. These higher-rate loans are generally offered to borrowers with poor credit and sometimes include hidden fees or payment terms that can be impossible to meet. The Fed noted that misrepresentations and fraud by brokers and lenders are often a factor in these transactions.