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Unregulated Lenders are Looking for Exorbitant Investment Returns

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Unregulated Lenders are Looking for Exorbitant I nvestment Returns H igh-risk borrowers fall prey to predatory lenders. Why? Unregulated lending provides opportunities for high investment returns, which is lucrative for predatory lenders. How long has predatory lending been in existence? It started from the Civil War to the early decades of the twentieth century in the United States. Organized crime continues to operate in most businesses, such as predatory lending (Geisst). Currently , lending practices from predatory lenders demonstrate high-cost interest rates and fees to at-risk borrowers . So, what will you, the borrower, do about it? Know your lenders and stay vigilant to predatory lenders . Start your financial journey today and obtain your lending from financial institutions like regulated banks and credit unions. Learn more and visit FDIC’s website at #GetBanked and #MoneySmart . Check out the financial institutions offering low-cost or no-cost accounts for yo...
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Predatory Lenders Nearby Ready to Approve Your Loan Request at a High Cost

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Predatory Lenders Nearby Ready to Approve  Your Loan Request at a High Cost  Yes, I'm talking about predatory lenders lurking and conducting their business online and located in brick-and-mortar stores near low- and moderate-income communities. Predatory lenders are ready to impose unfair and abusive loan terms on borrowers. The loan terms include high interest rates and fees. Predatory lenders make qualifying without a credit check easy to entice borrowers with credit scores below 630. That's right! Depending on the amount, high-cost loans can be impossible to repay realistically. Consider this sample scenario: Mary needs to borrow $300 for an unexpected expense. She searched online for a lender and found an enticing website different from a traditional financial institution. Instead, she saw a nontraditional financial institution that would approve her loan quickly and guarantee funding on the next business day. Mary submits a loan request for $300. The predatory lender sche...
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Predatory Lenders Lurking on Websites and Social Media Channels

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Predatory Lenders Lurking on Websites  and Social Media Channels Predatory lenders are lurking on websites and social media channels. This is problematic because of the unawareness of the booming online technology from nonfinancial banks and predatory lenders intended to mislead young adults with low- to moderate-income (LMI) high-cost loans.  Researchers have proven that "the financial crisis exposed the potentially unsavory results of the interaction between LMI households and alternative and mainstream financial institutions. "Many LMI income households paid for high-cost financial products, were overleveraged, and had no reserve for unforeseen "economic instability." (Barr) Online financial tech companies like Affirm, Klarna, PayPal Credit, and AfterPay charge high late fees and encourage LMI individuals to spend more than they can afford." Financial tech companies make it easy for LMI individuals to finance purchases. (Renzulli) Many LMI individuals shoppi...
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Lacking Access To Credit

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Lacking Access to Credit #GetBanked Are you lacking access to credit because of low credit scores or thin credit files? Do you have a relationship with a bank or credit union? If you answered yes! Get banked today and visit #GetBanked to avoid falling prey to predatory lenders and other online technology who are nonfinancial lenders charging high-cost financial products. Locate a bank or credit union near you by visiting #BankOnMovement .  Banks and credit unions have been encouraged to provide essential banking services and small-dollar consumer loans to low- to moderate-income (LMI) young adults and consumers in LMI communities. Visit #AccountAccess to see a list of financial institutions offering low-cost accounts. #LackAccess2Credit #AccountAccess #BankOnMovement Written by:  Monée Boswell
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