Avoid Predatory Lending 

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Predatory Lending is Illegal  

Tips to avoid predatory lenders, spotting and avoiding predatory loans.

Watch Out for Bad Loan Signals

For the last couple of years, low interest rates, aggressive marketing tactics, scant industry oversight and investors who want to put their money into real estate instead of the stock market have contributed to the ideal operating environment for predatory lenders.

 

How to Spot and Avoid Predatory Lending

Predatory lenders promise loans that are "too good to be true" and pressure borrowers to take them on the spot. Here's a few things you or your family and friends should know about spotting and avoid predatory loans.

 

Avoid Predatory Lending

Lots of dishonest, aggressive, lenders advertise their loans to homeowners in financial need – people who have fallen behind on property taxes, need money for medical bills or need costly home repairs. Instead of offering a fair loan, these lenders use smooth-talking salespersons whose loans carry high interest rates, outrageous fees, and unaffordable repayment terms. They can trick you into taking out loans that you cannot afford to repay. Some people even lose their homes to foreclosure. That’s a high price to pay for choosing the wrong lender.