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Avoiding predatory lending scams

Predatory lenders usually push their services on those who need money for medical bills, property taxes or necessary home repairs. They paint their loans as the answer to your financial woes. What the consumer doesn’t know is a predatory lender will provide you money with unreasonable rates and terms. They push loans with high interest rates and through-the-roof fees, and when you can’t pay they come at you with harassing collection tactics. It’s important to know how to tell a good loan from a bad one. If you get involved in a bad loan you could end up losing a lot of money, as well as your home and your good credit rating. Ask yourself the following questions when applying for a loan: Do you feel pressured? Have I shopped around for the best deal? Is it too good to be true? Can I trust the lender? Do I understand the loan terms and conditions?

Particularly watch out for loan offers over the phone promising you next-day approval and low interest rates. Call other banks and compare interest rates, terms, and fees to make sure you’re getting the best deal. Be wary of advertisements that offer quick and easy approvals and those that say “bad credit” is no problem, they often don’t disclose important details. Always read the fine print in any offer. Call your local Better Business Bureau to see if there are any complaints about any of the lenders you are considering. Most importantly, before signing anything make sure you understand the entire agreement and get answers to your questions. Lastly, make sure everything you discussed verbally matches your loan documents.

American Trust lenders are experts in giving sound financial advice. We take time to analyze your unique situation and work hard to get you the best deal possible. Our lenders your best interests in mind. If you feel you need advice on your current mortgage loan, or would like to apply for a loan, please call 589.0855.