What does "financial exploitation" refer to?

Financial exploitation refers to the act of taking advantage of a consumer's lack of understanding or awareness, often resulting in unlawful profit for the exploiter. This situation typically arises when individuals or organizations manipulate or deceive consumers into making unfavorable financial decisions, which could include excessive fees, fraudulent schemes, or misleading investment opportunities.

In contrast, giving financial advice without the appropriate licensing pertains to legal compliance and does not necessarily imply exploitation. Encouraging consumers to save more money and assisting them in budgeting their expenses are positive practices aimed at enhancing financial literacy and responsibility, and they do not fit the definition of exploitation. These choices focus on beneficial interactions rather than the unethical manipulation implied by financial exploitation.