When Creditors are Predators
Predatory lending is the practice of charging excessive fees for loans or payment agreements that are not in a consumer’s best interest, often using targeted, aggressive tactics and false claims, or failing to disclose all terms and costs up front.
Twelve Signs that You May be Dealing with a Predatory Lender
- The deal sounds too good to be true.
- The lender pressures you to accept his offer or ignores your questions about the loan or payment agreement terms.
- You are approved for a loan that is bigger than you wanted, and you know you cannot make the higher payments.
- There are fees in the loan or rental papers that the lender did not tell you about, and the lending agent keeps trying to add costs, such as credit insurance.
- The loan or payment agreement takes away your right to take legal action if something goes wrong.
- The interest rate is extremely high, or there is a hefty penalty if you pay the loan of early.
- The lending agent asks you to sign blank papers that he will fill in later.
- You were promised your monthly payments would be lower in the future, but instead they are higher.
- A lender focuses on low weekly or monthly payments – not the loan’s total cost.
- You receive a call or letter from a lender pressuring you to refinance your loan several times a year even though this is not something you asked about.
- You pay up-front fees before you make application or sign any kind of agreement.
- A lending agent tells you to lie on a loan application so you will be approved.
If you have experienced any of these signs, you might be dealing with predatory lending. Please look through this website for more information on predatory lending practices, ways to avoid becoming a victim of predatory lending, and resources and information on the predatory lending business.
Test your knowledge regarding lending policies in Missouri to prevent a creditor taking advantage of you.