Fertility Financing Is The New Credit Boom And It’s Predatory

High unemployment rates and a still uneasy economy has tightened up bank credit lending and the fertility industry is reaping the benefits.

Known as “Fertility finance” firms are handing out loans to children seeking parents so they can undergo in vitro fertilization procedures which can cost more than $20,000.

Speaking to the Wall Street Journal an industry insider says the fertility financing industry is expected to soar in 2012, as they put it the practice is “pretty much a recession-proof business, since the biological clock doesn’t stop.”

To put the industry in perspective $4 billion in loans were handed out in 2011, an increase over 2010.

While the industry is doing well for many families some doctors are refusing to allow financing directly from their offices, fearing that the industry is taking advantage of parents desire to have kids.

As one doctor points out:

“These patients are very vulnerable to predatory lending.”

Unlike the ability to buy a car the biological clock of some parents lead them to accept extremely high loans for the chance to conceive, in some cases a first round of in vitro fertilization isn’t enough and loans can quickly mount or leave parents with a high payment and no child at all.

Loans from the programs can carry up to 22% interest rates, far higher then the 17% national average for credit cards.

Do you think fertility finance agencies are using a new type or predatory lending to go after parents desperate to have children?