Don’t Get Scammed By Predatory Lenders!

Always do it on my own so I gotta get
through it and the only thing I know is to love what I’m doing
never give up never slow till I finally prove it never listen to the nose I just
wanna keep moving keep my head up when I act that’s a fact hello everybody and welcome back to my
Channel today came home from work and I was inspired to get a move on on this
video that I told her I was gonna do about predatory lending practices if you
all don’t know and this is actually my last week at this job and I am actually
kind of miss it a lot but I got a full-time job elsewhere and this is a
part-time job the job that I’m working at now is teaching digital literacy
skills to people that come into the public library and one thing that I see
happening quite often is people coming in and wanting me to help them to apply
for credit cards or loans and when we actually sit down to look at what
they’re applying for it’s not good people it is not good and so we have to
sit down and just do a little bit of research so that they can check out to
see that what they’re being sent in the mail or what somebody cold calls them
about is actually something that’s legitimate and isn’t a scam and it isn’t
gonna cost them a lot more money than they bargained for in terms of repayment
so I’m just gonna read a little article to you from the street that explains in
general what predatory lending is it’s an article called what is predatory
lending by Brian O’Connell and it was published May 9th 2019 on the street
calm predatory loans are consumer loans geared to low income Americans who are
hard up for cash and are charged ultra high interest rates fees and penalty
charges to obtain the predatory loan predatory loans are marketed to
consumers who really don’t have any legitimate loan alternatives
who eventually wind up taking a predatory loan with unrealistic pay down
terms sky-high interest rates and mounting fees and penalty based charges
predatory loans by and large set up borrowers for failure they not only come
with significantly higher interest rates than regular loans but they also burden
borrowers with high fees often come from shady loan operators and come with
contracts that offer severe financial penalties to borrowers who don’t meet
the excessive terms of the loan mostly predatory lenders target the poor
minorities the elderly and Americans with little or no formal education
predatory loans are also geared toward desperate individuals who need quick
cash for medical emergencies to pay the rent or even to put groceries on the
table mostly these borrowers have poor credit maybe jobless or underemployed or
have recently been laid off when these borrowers can’t get a loan in a
conventional way they may feel they have no recourse but to turn to a predatory
lender and the people that I’m seeing coming into the library are mainly
elderly people who you know there are a lot of elderly people seniors who are
below the poverty level and they’re very desperate for cash Social Security
checks are just not cutting it they don’t want to get their children
involved if they have children because either they’re embarrassed or they don’t
want to bother their kids with their problems or they’re trying to keep up
appearances in some cases their children think that they’re financially well-off
and you know they would be very surprised to know that Grandma and
Grandpa or mom and dad really are not well-off at all there’s people out there
that have major medical bills and this is something that you know I know about
personally but people come into the library who’ve had a major medical
catastrophe and suddenly they’ve had a terrible turn financially and they’re
desperate for money there’s students who have graduated and found a very
unfriendly unfavorable job market and who have not been able to obtain the
kind of employment and salary they had hoped for or maybe even more promised
while they were in school and now their student loans are come
and they don’t know what they’re gonna do because they’re either underemployed
or unemployed there’s also people that have filed for bankruptcy because they
could not make it work and they finally had to take action legally and hire a
lawyer and declare bankruptcy and now they are not eligible for any credit
cards or loans with reasonable rates because of this or I don’t know I’m
trying to know if it’s seven years time maybe someone out there who is a lawyer
or an accountant or who deals with this sort of situation can enlighten me but I
think it’s at least seven years before your credit clears again and then all of
a sudden you are quote-unquote pleasantly surprised to find offers for
credit cards in your mailbox because you were probably told by the professional
who helped you to file bankruptcy that you would not be eligible for credit
cards because your credit is pretty much trashed at this point and trust me there
are predatory loan companies credit card companies that are happy to prey on your
desperation and your lack of available normal venues and avenues of being able
to get a good credit card or loans at favorable terms and offer you the worst
possible terms and because you’re desperate because you know yes maybe you
don’t owe your old bills or credit cards anymore you still now don’t have credit
to pay your new bills and you don’t have enough expendable cash to pay your bills
and you would love to get some new credit cards with a clean slate and you
will sign up for these cards at exorbitant interest rates etc so yeah
those are some other categories of people that fall prey to these companies
make no mistake predatory lending is a big problem in the u.s. with study after
study detailing the negative impact abusive lending practices have on the
most vulnerable of Americans predatory lenders are also highly aggressive in
marketing predatory loans to vulnerable low-income America
predatory loans are shield on television ads online as via social media on social
media and even door-to-door pitches targeting borrowers who can least afford
loans and here I just want to show you an example of a type of marketing
material that sent to people and particularly to older people but really
anybody who there may be a language barrier there may be an educational
barrier somebody might again just be reading through things quickly and be
desperate or it may be an older person whose eyesight isn’t the greatest they
will send you things in the mail these big credit cards nice bold colors fonts
large size you’re pre-qualified you’re pre-approved for up to you know this
amount of money and it has their their name on it and it has a web address and
the web address is also below and basically they’ll send like one or two
very large print dynamic beautifully designed cards flyers that catch your
eye and all you see is this that you’re pre-qualified for up to and this is six
thousand eight hundred dollars squared so you know go figure
well not only are you not necessarily pre-qualified if you apply and they run
your credit score you could still be denied and then it’ll being your credit
even worse but of course this is not giving you all of the terms how much
interest are you gonna pay how often do you have to pay back what happens if
you’re late on a payment what will they do what will they charge you all of that
information is on a very very small boring white piece of paper with teeny
weeny black letters black font not eye-catching whatsoever the kind of
thing that would flutter to the floor and you wouldn’t even notice it because
it’s not bold and blue and colorful with all these cute little logos on it that’s
where they spell out a lot of the dirty details and even then they don’t
necessarily tell you everything but you can find out the APR eight
fines and fees usually if there’s an annual charge for say this was a credit
card if there’s an annual charge for the credit card it will be on there but they
put it in the least noticeable place possible you know they put all of the
nice fancy big letter low information stuff first and the nitty-gritty they
make is unappealing and is uninviting as possible so yeah I just wanted to bring
that up or here we go predatory loans are sold on television ads online ads
via email and social media and even door-to-door pitches targeting borrowers
who can least afford the loans borrowers who are targeted by predatory lenders
often feel like they have no choice but to sign onto a loan is they
traditionally have trouble getting approved for a conventional loan
predatory lenders know this and get even more aggressive about marketing high
interest – loans to low-income Americans I can tell you there’s one woman that
comes into the library they send her something like every week maybe even
more than once a week it is crazy no sooner does she rip up
one that another one comes in the mail absolutely crazy
examples of predatory lending there is no shortage of predatory lending
examples as unethical lenders have found multiple ways to fleece unsuspecting
borrowers these examples are at the top of the list monthly payment loans these
loans are among the easiest loans for predatory lenders to sell primarily
because they hook the hook resonates so strongly with consumers here’s the deal
with payment based loans predatory lenders are able to focus the borrower’s
attention on the monthly payment and not the total loan payment emphasizing
little loan will cost only 199 dollars per month instead of $15,000 that’s a
much easier sell for low level lenders but that’s exactly why they do it
balloon payment loans predatory lenders are known to push so-called balloon
loans especially with mortgages that start with lower and easier to pay terms
but then balloon into much bigger payments later on if the borrower can’t
make the larger payments he or she can easily default on the loan and have to
take out another loan to meet the original loan payments negative loans
predatory loans come with what lending industry professionals call negative
amortization that means a loan with monthly loan payments so minuscule that
they don’t even cover the loans interest and soon the borrower finds himself
paying back way more than he borrowed on the loan stacking and packing loans
these loans are another favorite among predatory lenders with packing loans
lenders hack the loans with loads of fees charges and penalties that could
trigger extra fees and charges and try to hide the extras in the loan contracts
fine print while the lender gets the extra items and charges and into the
loan that doesn’t mean the borrower is getting a better loan product because
they’re not payday loans these predatory loans are among the most pervasive and
the costliest loans that can dig deep into the borrowers pocketbook payday
loans are geared toward low-income borrowers who require instant cash to
make the household budget work the payday part of the loan means the
borrower is expected to pay back the loan by his or her next payday and with
skyrocketing interest rates of a hundred percent or more tacked on to the loan
cost some payday lenders have been known to charge as much as nine hundred
percent on a payday loan which for many borrowers is virtually impossible to pay
back how can predatory lending be avoided
predatory loans do come with red flags that should grab the attention of
borrowers and send them running in the other direction these are some of the
most common warning signs that come with predatory loans and what to do about
them ones uncovered ultra high interest rates many predatory loans come with
excessively high interest rates often at triple digit levels some payday loans
for example can come with interest rates that are 100 percent or higher
if you’re considering a high interest payday loan reading the contracts fine
print is a must if necessary I have a trusted friend relative or even your
local banker read the contract for you and point out any potential problems
extra fees and costs predatory loans also tend to come with multiple add-on
fees and charges as lenders look to bundle extra cost into the loan and
count on the fact that borrowers won’t notice for example a predatory lender
may insert credit insurance on auto or personal loans or try to add high
service fees for a mortgage loan often the lender will insist the charges be
included in the loan on a take-it-or-leave-it basis if the
scenario comes to pass let the lender know you can’t abide by those terms at
our wall getting away from the deal a reputable
leader will back off peel away some or all of the more onerous fees and try to
cut you a better deal low credit score fees predatory lenders will also insert
extra fees from vulnerable borrowers with low credit scores and as a result
half you borrowing alternatives paying extra in the form of higher interest
rates for poor credit it’s a fact of life for low credit consumers but
unethical predatory lenders will add extra fees just for applying for a loan
if you have a low credit score or even worse the lender will reject the
original application for a low credit figure then offer to grant the loan if
the borrower agrees to extra charges your best bet here is to work on your
credit score check it for accuracy and upgrade it where possible and then try
to get a mainstream loan from a trusted financial institution you can get a free
copy of your credit score once a year from each of the three main credit
bureaus Experian Equifax and TransUnion at or from the
credit bureau directly your borrower wants to secure your loan predatory
lenders may only agree to grant a loan if the borrower agrees to attach a
valuable financial asset like home equity or auto ownership title if for
whatever reason the borrower can’t keep up with the loan payments the lender can
cancel the loan and keep the secured asset putting the borrower in further
financial peril never ever agree to put your car or home equity up as collateral
for a loan better to back off look for a better loan deal that doesn’t demand the
securing of a financial asset there’s too much risk that you lose the asset
making a personal financial situation even more perilous there’s high pressure
to close a loan predatory lenders are also known to try and rush a borrower
through the loan process putting an expiration date on the loan offer they
do so to keep ours from taking the time to thoroughly review the loan and thus
miss the high fee its penalties and charges that come with onerous loans if
your lender is pushing you too close on a loan before you’re ready to sign on
the dotted line it’s best to walk away as your best interests aren’t being
served you’re not offered a full loan
disclosure unscrupulous lenders will often try to get borrowers to sign off
on a loan without offering a proper loan disclosure or even lie or omit critical
information from borrowers by law lenders are mandated to provide
borrowers with a complete loan disclosure that includes the full story
on interest rates fees and multis especially late payment fees
which can be especially expensive and any other additional cost if your lender
won’t provide these details walk away from the loan there’s a good chance two
lenders trying to swindle you they ask you to lie to clear regulatory hurdles
and predatory lenders will ask borrowers to lie or misrepresent themselves to
pass lending criteria and get a loan if you’re unemployed they may ask you to
say are self-employed or urge you to up your animal income to qualify for a loan
and both are considered fraud asking utilize big red flag that your lender is
in predatory mode and that lender should be avoided and should even be reported
to law enforcement authorities see the contact information below guarding
yourself against predatory lenders there’s no better way to protect
yourself from predatory lenders than to learn as much as you can about loan
terms interest rates payment timetables and your state’s rules and regulations
on financial lending practices if you’re taking a loan make sure to read the fine
print take your time in reviewing the loan contract give a wide berth to any
lender I want you to fudge the facts on your application or who makes excessive
promises you suspect can’t be met for alternative sources – predatory loans
focus on working with your local bank or credit union one popular alternative to
a payday loan for examples of payday alternative loan pal which can be
obtained through the federally recognized national credit union
associations loans can be had for up to a thousand dollars and the borrower must
be a member in good standing for at least one month to do all that and
you’ll vastly increase your odds of steering well clear of predatory lenders
and keep you and your financial assets out of hot water so I’m going to link
this article below and it will have all the information at the bottom of that
article about where you can go to report predatory lending companies and it will
tell you what information you need in order to file such a report I also want
to point out another red flag that I have noticed and that is that these
predatory lending companies make it as hard as humanly possible to get a hold
of somebody in customer service so if you have a problem if you post a payment
and they don’t record it as having been sent and they charge you a late fee and
you’re trying to get a hold of someone will not be able to get ahold of anybody
they will make it so difficult it will be hard to find a phone number instead
of multiple avenues of access like email web chat phone they’ll just be one
method maybe it’s just a phone number and you’ll be on hold for like three
hours before you get answered and then when you finally are calls answered
you’re talking to a very rude person who says they can’t help you or you send an
email to the empty air you never get a response I mean if they just make it so
difficult to resolve any problems because they don’t want your problems to
be resolved if you have a late payment or they never received your payment and
they then they can default on the loan or they can charge you exorbitant fees
or interest or make you have to pay all the amount upfront you know sometimes
that’s the term that if you miss a payment that everything is due including
back interest they want you to fail they totally want you to fail and so they
make it as hard as possible to rectify any problems or situations even if it’s
not your fault so another red flag so be on the lookout
when you get an application for something like that in the mail it is it
easy to get a hold of someone that’s another thing and not just easy to get a
hold of someone to apply for the loan but easy to get a hold of customer
service in case of problems and try out those numbers check it out beforehand
before you apply I mean I am just going to show you some examples basically if
you get something in the mail from a credit card or a loan company what you
need to do is go on Google do a search and I’m searching up a company called
lender BBB and whatever the credit card is called
or whatever the bank is called do a search for that company and BBB you can
put an ant in between there but you don’t even have to and BBB stands for a
Better Business Bureau okay look at their Better Business Bureau profile
alright this is a company called lend up financial services they’re pretty
notorious they’re out of Oakland California the business is not BBB
accredited they’ve been in business for seven years there’s an average of 34
customer reviews they get a little less than two stars customer complaints there
have been 44 complaints that were closed in the last three years ten complaints
closed in the last 12 months okay this person says he was a victim of identity
theft but they didn’t they didn’t help him to resolve his situation I’ve been
attempting to reapply for a loan from them and I can never do it because the
decline letter stays on the dashboard it’s been sitting there since 2016 or
allow me to reapply you can read all the customer reviews here and you see
there’s some planted ones too I in one of my my anti MLM videos about the slave
circle companies I talked about this one horrible company that every time they
got a one star review on Glassdoor it was followed up by a five-star review
and that’s always suspicious you know it’s I mean even then followed up by a
two or three star review but five stars really with all these one and two stars
reviews I think not I recently tried to take out a loan last
week with this company and it stated that there was already an account open
in my name I never once opened an account with these people nor did I know
if their existence in 2014 I also wasn’t taking out loans back then someone used
my Social Security and I tried to get them to give me the information so this
company there’s a lot of complaints about identity theft and I don’t know
what that means exactly
are people taking out loans and other people’s like names from this company
and I have no idea but I’m just giving you an idea this is another one and see
financial solutions 63 complaints now this is net credit and this is that same
credit card that this one right here that I showed you before oh boy
earlier this summer I tried to get a loan with net credit their business
operations are very shady to say the least and I sent several emails
cancelling the process along with many voicemails on 9 22 19 at approximately
78 p.m. I received an email from credit Sesame offering loan options available
to me I deleted the email somehow net credit decided that I had accepted
multiple loan offers and my credit shows that now I now have multiple open loans
with them I do not have any loans in fact I have a credit freeze through all
three credit bureaus so how did they pull this off sent emails voicemails no
response they never follow up with emails ever I got a loan for four
thousand but they’re charging me twelve thousand to pay it back spoke with them
and they were very nasty and told me interest rate in Georgia is 58 percent I
told them I never heard of an interest that high I read the reviews everyone
saying the same thing I demand the company be shut down for unfair
practices you know and a lot of these companies are very good about answering
every single one of these complaints so that they look like they’re the care
they only respond when somebody makes a public complaint like this I don’t know
if these people actually got the situation resolved I don’t know if
answered and resolved is the same thing probably not I was funded four thousand
sixty dollars as a personal loan by net credit on April 10th 2019 I paid thirty
five hundred on April 24th 2019 and another
494 619 and 452 on 719 at 452 on 823 I paid off some 4898.98 for payments in
the span of four months I understand there’s interest that I
have to pay but the numbers just aren’t adding up
I called that credit to get an explanation the billing information I
want them to explain how they were able to come up with the monthly payment I
wanted to see how much balance I had after I paid every month that I want to
know how much interest adding to the payment and dollar amount and just the
principal balance the call was transferred to a manager because I was
told the manager can explain it better as soon as I got on the call the manager
who’s a woman became so defensive right away and keeps telling me I paid
interest over and over and over throughout our conversation I said yes I
understand I have to pay interest but I wanted her to look in the system and
tell exactly how they’re coming up with the monthly payment
I made she said she doesn’t have the information she can’t tell me what the
balance I had after making payments all she said was I have to pay it in trust I
understand I have to pay him trust but I just want details and how they came up
with those numbers and I’ll rest my case I just want to see the numbers month by
month and I want to make sure I’m not getting cheated good luck all right and
then one more example mission Lane LLC that’s another common financial
institution also not Better Business Bureau accredited 32 complaints closed
in the last three years 17 complaints closed when a business advertises its
services to a consumer it should be law that it’s carried out I was pre-approved
then when I filled out the application I was denied it’s false advertising now my
credit score took another hit because of the scheme that they have going on
they’re reaching out to a lot of people that normally you know would not be
eligible and they know that but does I guess I’m trying to ask does rejecting
people still do something for these companies in terms of helping them meet
certain regulations and how many credit card applications they have to process a
year do they get some sort of money from somewhere if they run a certain number
of applications even those that don’t get approved
because you know it it doesn’t seem fair that you basically get lied to and sent
something in the mail saying you’re pre-approved and then when they run your
credit it hurts your credit score and you don’t even get the money because
they deny you anyway again if anybody works in the financial business or legal
or accounting and knows about this leave a comment two years ago I opened a
credit card with something service a month ago it was purchased by Mission
Lane and without notification they added a $59 annual fee yeah this guy went
through a whole rigmarole to see if he could just pay off the card and cancel
cancel it because he doesn’t want a $59 annual fee they didn’t cancel the credit
account because they said it was after a year was up and they did charge him the
fee unable to cancel a credit card account the company deliberately in my
opinion and experienced utilizes a cancellation process that ensures the
credit card can’t be cancelled so the company can continue to collect the
annual renewal fee so yeah these annual renewal fees are a big deal and they try
like heck to keep you a customer they do not want you to pay this card off or
these loans off not at all they want to keep you stuck so they
charge fees they charge late fees they will make charges after you’ve made your
final payment and say oh that’s a fee that you owed and therefore we can’t
cancel it for this year or it’s just crazy
honestly I find that you find the information easier doing a google search
for the credit card or loan company and Better Business Bureau on the Google
search engine then going on to the Better Business Bureau site and using
their search function because I’ve searched for a couple things on their
search page within their website and I have not found it it’s come up empty but
when I went on Google and I searched I found it so Google is actually a more
robust website and it also indexes the pages on the Better Business Bureau
website so your search on Google for the credit
card or the bank or the lending company that you are looking for and type BBB
for about a business bureau and go on there and look at all the complaints and
get it get a peek as to other people’s experiences with these services before
you apply and sign up and either ding your credit rating for applying or
actually getting a loan and then ending up paying two three times more back in
interest and fees than the original principal of the loan you took out so I
say this again is you know somebody who has had my share of medical expenses who
has seen my share of unemployment and underemployment and I know how hard it
is and I help people everyday who come into the library who are desperate for
cash and they don’t even care about tomorrow like they just need money today
to pay bills but you you will care trust me it’s just not worth it because you’re
going to be an even worse debt and worse credit worse financial shape you could
end up losing your home or your car if you take out a loan in which you have to
put forth an asset as a security deposit for the loan if you default on the loan
they could take your house or your cars or your something that’s worth money to
you so yeah do not fall for these tricks and look into credit unions I also
wanted to point out that there are non for profit debt consolidation companies
credit card consolidation companies that will work with lenders to get you get
you a deal where you’re basically just paying the principal you owe and get
them to forgive the interest or at least to lower it significantly and you
basically can consolidate all of your different credit card payments or loan
payments until one nice payment that you pay to one place and they can arrange
that for you they also have free credit counseling so and they also can give you
advice on whether or not a a card or a loan that you’ve been
offered is actually trustworthy so they’re a really great place to call
their they’ve got all sorts of locations around the country and not sponsored at
all that it’s just a place that I know that we do have a local office in
Chicago and I I know they’ve got them all over the place one eight hundred
five five zero 1961 but let me just go on the locations yeah they’ve got
telephone counseling hours they’re in Arizona California Colorado yeah they’re
all over the place so I’ll leave that link below also so that you can browse
their website if you need to and if you want to and if you want to get more
information just about financial literacy and being smart with your money
and who you do business with so that’s it for today I am wishing all of you
nothing but health and happiness and serenity and peace and contentment in
your life thinking about everybody out there today who’s having a hard time no
matter what that hard time is if it’s physical health mental health emotional
health I’m thinking of all of you out there and stay safe stay safe out there
on the Internet stay safe and in business and stay safe in every other
way and I will see you in the next video talk to you later

One comment on “Don’t Get Scammed By Predatory Lenders!”

  1. FootInMouth says:

    Have you ever been fooled into taking on a high-interest credit card or loan? How did it end up?

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