HOW TO AVOID A PREDATORY LOAN
As a borrower, you have rights. To get
the best deal, follow this advice from the Center for
Responsible Lending, MSN Money, and the American
Association of Retired Persons (AARP)
- Don't take the first deal offered. Shop
around
- Don't sign something you don't
understand. As questions and talk to a trusted
friend or adviser.
- Don't fall for high-pressure sales
tactics.
- Don't trust ad promising "No Credit?
No Problem!"
- Don't sign blank forms that the lender
promises to fill in later.
- Don't borrow more than you need.
- Don't accept payment terms that you can't
meet.
- Don't agree to balloon payments. This
large sum of money due at the end of a loan could
cost borrowers their home if they can't meet the
payment or refinance the loan (usually at an
excessive cost).
- Don't purchase credit insurance with your
loan. Usually this insurance is extremely
profitable for the lender but provides little
benefit to the borrower.
For more information on predatory lenders or for help
in dealing with a predator lender, please contact:
The Ohio Attorney General's Office - http://www.ag.state.oh.us/
The Ohio Department of Commerce - http://www.com.state.oh.us/dfi/
AARP Consumer Affairs Division - http://aarp.org/states/oh/
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