Signs of a Predatory Lender
Although some of these practices are predatory in nature, not all are illegal. Please consult with an attornery to help determine whether or not legal action can be taken.
- Strips equity from homes, resulting in foreclosure.
- Targets consumers who are equity-rich and cash-poor.
- Employs overly aggressive or deceitful practices.
- Withholding information.
- Steering to high rate lenders.
- Uses outreach tactics including:
- working closely with home improvement contractors
- offering debt consolidation loans
- Promises to "rescue customer from foreclosure"
- Inadequate or incomplete home improvement work.
- Makes loans to mentally incapacitated homeowners.
- Charges excessive fees and/or an unreasonable amount of fees.
- Office is a one-stop shop for cash, credit, loand and/or other services.
- Borrowers are pressured into signing agreements before they have read them.
- The company/agency acts as a referral service for other lenders.
- Abusive collection practices