Based on an article in the Wall Street Journal (Ian the Jeanne Dugan abd Telis Demos, "New Lenders Spring Up to Cater to Subprime Sector", March 5, 2014) , an economist commented on the situation a bank faces when making personal loans to subprime borrowers. "You have to be alert to the trade-off between serving consumers and being viewed as taking advantage of them." What do the banks mean by prime and subprime borrowers and how do they distinguish between these two categories of borrowers? If banks charge subprime borrowers a higher interest on loans than they charge prime borrowers, are the banks taking advantage of the subprime borrowers?