Don’t take the bait when predatory lenders are trying to lure you in. Recognizing and avoiding these scams can save you many financial headaches in the future, including high debt, crumbling credit, and even the loss of your home.
Predatory lending generally refers to lending practices that impose deceptive, unfair, or abusive terms on borrowers. Many of these practices are illegal. Others are legal, but not in the best interests of the borrower. 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 emergency cash (eg, paying medical bills, doing home repairs, paying for a car) or even victims of natural disasters. And it’s not just the criminals who engage in predatory borrowing tactics. Sometimes reputable banks, finance companies and other retailers can practice these deceptive tactics.
Watch out for excessively high interest rates or inflated fees that add to the loan interest rate. Always carefully review the entire loan program. Ask for an explanation of fees, charges or terms and conditions if you are not comfortable with them. The Truth in Lending Act protects consumers and legally requires lenders to provide you with loan cost information so you can compare loans.
Beware of unannounced refinance offers, including telemarketer loan solicitations and door-to-door sales, as well as home equity loan offers tied to unsolicited home improvement contracts. If you are considering taking out a loan, make sure that it gives you a benefit, such as reduced interest rates.
Compare loan offers and terms from multiple lenders. Don’t let lenders point you to more expensive products when you may qualify for traditional loans. You can also ask the lender if they will waive or reduce the loan fees or fees associated with the loan.
Beware of âbait and switchâ tactics. This is when a lender initially offers a set of conditions, but then forces you to sign a contract with more expensive terms or time limits and shows you there were other fees or conditions. Also, if you feel pressured into signing a loan agreement immediately with a lender, walk away. If the offer is good today, it should be tomorrow.
Other popular predatory lending practices that you will find are advance charge plans, internet payday loans, and service scams.
The most common is the phantom help scam. This is where the fees are charged for “services,” which are just paperwork and phone calls that the consumer could easily handle. Other examples include leaseback or buyout, refinancing, Internet and telephone scams.
Advance fee programs are often presented as âno costâ or âno costâ loans, where the organization will ask for an upfront payment for the âfirst paymentâ or âinsuranceâ. After that, however, no loan is given.
Internet payday loans will use Automated Clearing House (ACH) transactions to deposit and deduct funds from a borrower’s account. In Kentucky, it’s illegal. Kentucky law requires that a check be presented in an authorized 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!
More information on predatory lending is available from 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/. More information on family financial education is available at the Pulaski County Extension Office of the University of Kentucky’s Co-operative Extension Service.
The Cooperative Extension Service’s educational programs serve all people, regardless of their economic or social status and will not discriminate on the basis of race, color, ethnicity, national origin, creed, religion, political beliefs, sex, sexual orientation, gender identity, gender expressions, pregnancy, marital status, genetic information, age, veteran status or physical or mental disability.
A barn quilt painting class will be held at the Pulaski County Extension Office on Wednesday, September 29 starting at 10 a.m. The cost is $ 30 and includes everything you need to paint your barn quilt design. You must pay and register in advance. Only 10 people will be accepted.
Interested in visiting New York? This trip will take place September 23-27, Thursday through 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 coupons, you need to spend them now at the Farmers Market. Vouchers can only be spent on fresh products. If you need any recipes, canning recipes, or help with food preservation, check with the Pulaski County Extension Office. The Woodstock Community Center has a produce market every Saturday from 8:00 a.m. to 12:00 p.m. He is free to settle down.
Young at Heart will meet on Thursday, September 2 at noon in the Communion Hall of First Baptist Church in downtown Somerset. Bring your own dish and enjoy the conviviality.
There seems to be a lot of corn at the Farmers Market. Here’s a corn recipe your family will love
Fresh corn salad
5 ears of fresh corn
Â½ cup diced red onion
3 tablespoons of apple cider vinegar
3 tablespoons of olive oil
Â½ teaspoon of salt
Â½ teaspoon of black pepper
Will make 10 Â½ cup servings, 70 calories each
Peel and remove the silks from the corn. In a large pot of boiling water, cook the corn for 4 minutes. Drain. Cool by immersing in ice water. When the corn has cooled, cut the kernels off the cob.
Combine the grains in a large bowl with the red onion. Combine the vinegar, olive oil, salt and pepper. Pour over the corn and mix gently.
Refrigerate to allow flavors to blend. Just before serving, add fresh basil.