Predatory Lending Information

Predatory lending is when agents have unsuspecting people to accept loans that they have no hope of paying back. The common way that this unsavory practice works in regards to targeting individuals is by supplying them with misinformation or taking advantage of those who are in a desperate situation. Many times these agents fill enhance their legitimacy through certain illegal or deceptive practices. The whole goal here is to get the unsuspecting individual to sign on the dotted line to awful terms, where they then are legally obligated to make payments that they simply cannot afford. As awful as it is, predatory lenders do have documents that make their victims obligated to make payments. This is why it’s important to seek legal counsel to handle this situation accordingly. While they have paperwork, these lenders are still operating an illegal practice which makes their paperwork a flimsy defense at best.

Ways of finding out if you are involved in a predatory loan can depend on the situation. However, there are a number of common warning signs that could indicate your loan company is attempting to gouge you without consideration. Some examples of such warning signs include:

  • Extremely high closing costs and interest rates
  • Documentation is incomplete at best or missing at worst
  • Pressure – quite often the most common complaint we hear is brokers or lenders looking to seal the deal quickly.
  • Cutting you off – predatory lenders often suggest you’ll never get a better deal and they are your last hope
  • Final contract is entirely different than what was previously discussed
  • Loan flipping – constantly refinancing your loan
  • Offering you a loan that is well outside your income potential
  • Never investigates your earning potential
  • Charging absurd fees and pay off rates
  • Breaking verbal agreements throughout the process
  • Allowing you to “bend the truth” on any part of your loan application

If you suspect that you might be involved in a predatory loan please give us a call at 888-728-0044 for a free consultation.