When a lender charges interest rate and/or fees which prove to be excessive for a loan that the same borrower could have found a better deal for had they shopped the market more. This is a form of predatory lending and happens most commonly to inexperienced/uneducated borrowers.

• A borrower can avoid price-gouging by simply shopping for their loan with multiple lenders and banks, making sure they are getting the best rates and conditions available.