Don’t take the bait when predatory lenders try to get you rolling. Recognizing and avoiding these scams can save you from many financial headaches in the future, including high debt, ruined loans, and even losing your home.
Predatory lending typically refers to lending practices that impose fraudulent, unfair, or abusive terms on borrowers. Many of these practices are illegal. Others are legal but not in the borrower’s best interests. Common predatory lending techniques include payday loans, auto title loans, and subprime mortgages.
Creditors often target those with limited financial resources and those in need of cash in an emergency (e.g., to pay medical bills, home repairs, paying for a car) or even victims of natural disasters. And it’s not just criminals who practice predatory credit tactics. Sometimes credible banks, financial firms, and other retailers can practice these fraudulent tactics.
Watch out for excessively high interest rates or fees that are in addition to the interest rate on the loan. Always look through the entire loan package carefully. If you do not agree, ask for an explanation of the fees, charges, or terms and conditions. The Truth in Lending Act protects consumers and requires lenders by law to provide you with information about borrowing costs so that you can compare loans.
Be wary of refinance offers that come out of the blue, including telemarketer loan inquiries and door-to-door sales, as well as home loan offers related to unsolicited home improvement contracts. If you are considering taking out a loan, make sure it offers you benefits such as reduced interest rates.
Compare loan offers and terms from multiple lenders. Don’t let lenders push you into more expensive products when you qualify for mainstream credit. You can also ask the lender to waive or reduce the loan fees or fees associated with the loan.
Beware of “bait and switch” tactics. This is when a lender initially only offers a set of terms, but then pressures you to sign or reverse a contract with more expensive terms and shows you that other fees or terms have been incurred. If you feel pressured by a lender to sign a loan agreement right away, just walk away. If the offer is good today, it should be good tomorrow.
Other popular predatory loan practices that you will find are advance fees, internet payday loans, and service scams.
The most common is the phantom help scam. It charges for “services” which are just paperwork and phone calls that the consumer can easily handle. Other examples include lease-back or buyback, refinancing, internet and phone fraud.
Advance fee systems are often presented as “free” or “free” loans where the organization requires prepayment for the “first payment” or “insurance”. After that, however, no more loans will be granted.
Internet payday loans use automated clearing house (ACH) transactions to deposit and withdraw funds from a borrower’s account. This is illegal in Kentucky. Kentucky law requires that a check be presented in a licensed location. Internet payday loans can lead to overdrafts with fees that can add up quickly.
Remember, if the loan sounds too good to be true … it probably is!
For more information on robbery loans, contact the US Department of Housing and Urban Development at https://www.hud.gov/states/kentucky/homeownership/predatorylending or the Kentucky Department of Financial Institutions at https://kfi.ky.gov/. For more information on family finance, please contact the Pulaski County Extension Office at the University of Kentucky Cooperative Extension Service.
Educational programs of the Cooperative Advisory Service serve all people regardless of economic or social status and are not discriminated against on the basis of race, skin color, ethnic origin, national origin, creed, religion, political conviction, gender, sexual orientation, gender identity, gender, expressions, pregnancy, marital status, genetic information, age, veteran status, or physical or mental disability.
A barn quilting class will be held at the Pulaski County Extension Office on Wednesday, September 29th at 10:00 AM. The cost is $ 30 and includes everything you need to paint your barn quilt pattern. You need to pay in advance and register. Only 10 people are accepted.
Interested in a tour of New York? This trip takes place from September 23rd to 27th, an event from Thursday to Monday. Contact the Extension Office for more information.
Our local Lake Cumberland Farmers Market is open every Wednesday from 9:00 a.m. to 1:00 p.m. and every Saturday from 8:00 a.m. to 2:00 p.m. If you have farmers market vouchers, now is the time to spend them at the farmers market. The vouchers can only be redeemed for fresh products. For recipes, canning recipes, or help with food preservation, contact the Pulaski County Extension Office. The Woodstock Community Center has a fruit market every Saturday from 8:00 a.m. to 12:00 p.m. It is free to set up.
Young at Heart will meet on Thursday, September 2 at 12:00 noon in the First Baptist Church meeting room in downtown Somerset. Bring your dish and enjoy the fellowship.
There seems to be a lot of corn at the Farmers Market. Here is a corn recipe your family will love
Fresh corn salad
5 ears of fresh corn
½ cup diced red onion
3 tablespoons of apple cider vinegar
3 tablespoons of olive oil
½ teaspoon of salt
½ teaspoon black pepper
Makes 10.1 / 2 cup servings, 70 calories each
Peel and remove silk from corn. In a large saucepan with boiling water, cook the corn for 4 minutes. Drain. Cool by immersion in ice water. When the corn has cooled, cut the kernels off the cob.
Mix the seeds with the red onion in a large bowl. Mix the vinegar, olive oil, salt and pepper together. Pour over the corn and toss carefully.
Place in a refrigerator so that the flavors can mix. Add fresh basil just before serving.