Predatory Lenders Nearby Ready to Approve Your Loan Request at a High Cost
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 scheduled nine loan payments of $99.37. The predatory lenders automatically deducted payments from Mary's checking account each payday. Nine deductions were costing Mary $894.33. The dollar amount of the credit cost Mary $894.33 plus $300 borrowed equals $1,194.33. The annual percentage rate cost Mary 779.99%.
Many predatory lenders approve consumer loans online, and the annual percentage rate is above 700%. Take the time to recognize the language used by predatory lenders, so you will not fall prey:
* Fast, Easy, and Confidential. Apply today and get funds as soon as tomorrow.
* 90% of accepted applications are approved and originated by the next business day.
* Apply Now. The process is fast and easy, and there are no hidden fees.
* Apply for an Online Installment Loan.
* We make borrowing money easy. Apply Now.
* Fill out a short application. Take less than 5 minutes!
* One of our friendly customer representatives will call you.
* Money will be deposited the next business day. It's that easy!
Stay vigilant and recognize the signs and language predatory lenders use to entice borrowers who need cash fast. Getting banked and obtaining loans from a traditional financial institution for your financial needs is best.
Federal regulators examine and supervise financial institutions to ensure safety, soundness, and consumer protection. They also provide bankers with guidance on regulations, legislative insights, information on examinations, and training programs.
"The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to maintain stability and public confidence in the nation's financial system. The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and managers receiverships." (FDIC)
The FDIC has free financial education resources to download for public dissemination. They aim to educate our family, friends, neighborhoods, and community members and share this vital information. Also, visit #MoneySmart and #GetBanked.
Learn about the BankOn Coalition, join, help fight back, and inform the public about predatory lenders. Help us educate our community by disseminating information to family, friends, and neighborhoods on topics to help consumers understand their credit score, the importance of saving money, owning a business, and much more.
Comments
Post a Comment