Warnings Signs for Predatory Lending

Kimberly Watson, Editor in Chief
February 22, 2012 /

Most cash lenders operate within the scope of State and Federal laws, however, there are as in most consumer oriented service industries, those who try to take advantage of the uninformed consumer. As with any product, any applicant for a cash loan must be totally aware of what they are in affect buying and from whom.

As you would not buy a vehicle from a firm or a character you did not regard as trustworthy, neither should you borrow from any source of which you do not have confirmation of their integrity.

There are many and varied, registered and legitimate outlets from which you van arrange a cash loan. You do not have to rely on touting from flyers on your doorstep, the windshield of your car or elsewhere. Other dubious sources include, pressure applied from telemarketers on the phone.

There are various indications that your potential lender or representative is not as honest as you believe. One in particular is if you gain the impression that the rates you are being quoted seem unusually high, or that high pressure tactics are used to obtain your signature immediate. Any encouragement from a lender for you to give wrong information to obtain a loan, or asking you to sign a blank form, should be clear signs of malpractice.

Common sense always prevails as does the old saying that is something sounds too good to be true, it is! Also be aware of being pressurized into signing acceptance of conditions or terms, you do not understand, or for a loan sum you do not want. And do not commit yourself to higher repayments than your can afford.

Awareness of the obvious is always a giveaway, for example, if you are told that no other lender will accommodate you, or that at the final closing stage, the fees and charges you have been previously quoted have changed. If you are not completely satisfied with any answer or explanation, do not sign!

 

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