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 avoiding predatory loans:

How to Spot a Predatory Loan

Balloon payments.
High interest rates.
Monthly payments you can't afford.
Penalties for early pay-off of the loan.
Unauthorized refinancing of your loan.

For more information on how predatory loans work, read about the seven signs of predatory mortgage lending.

How to Avoid a Predatory Loan

Always shop around.
Ask questions.
If you don't understand the loan terms, talk to someone you trust to look at the documents for you.
Don't trust ads promising "No Credit? No Problem!"
Ignore high-pressure sales tactics.
Don't take the first loan you are offered.
Remember that a low monthly payment isn't always a 'deal.' Look at the TOTAL cost of the loan.
Be wary of promises to refinance the loan to a better rate in the future.
Never sign a blank document or anything the lender promised to fill in later.

To get help, contact one of these national organizations.

This article is brought to you by Education Center 2000.

Our mission is to educate consumers about secured and unsecured credit and homeowners about predatory lending practices, bank fraud and the legal options available to them.

website: http://educationcenter2000.com

We believe that if you don't know your rights, you don’t know your options.