12 Ways to Protect Against Predatory Lenders
Borrowers can protect themselves against predatory lending practices with these 12 tips
LAS VEGAS, June 19, 2012 /PRNewswire/ -- The Government has put in place several statutes to protect consumers against predatory lenders, such as the Truth in Lending Act and the Fair Credit Reporting Act. These consumer protection laws only go so far, making a well-educated consumer the best weapon against these practices. PaydayAdvance.org offers these tips on how consumers can protect themselves.
One of the best ways to avoid predatory lenders is to prevent desperate financial situations and make smart borrowing decisions. Here are ways to do so.
1. Evaluate finances and set a realistic budget.
2. Start a savings account and increase the amount contributed with raises, bonuses and extra earned cash.
3. In addition to a savings account, open an emergency account - that is strictly used only for emergencies.
4. Be wary of phrases such as rent to own, no money down, must act now and bad or no credit welcome.
5. Do not buy items if they cannot be paid for in cash.
6. Recognize that there are no quick fixes for financial issues and focus on long-term goals.
7. Never accrue new debt to pay off old debt.
8. Fully understand loan documents before signing and never sign an agreement with blank spaces.
9. Carefully and skeptically review any loan that uses equity in the borrower's home of residence as collateral - this includes a first mortgage.
10. Consult an objective professional, such as an attorney, if advice is needed on a loan agreement.
11. Make comparisons and shop lenders and fair terms before committing to an agreement.
12. Take time to consider all the aspects of a loan. Resist pushy sales practices and remember that there is no obligation or commitment until the contract is signed.
Most importantly, consumers must take responsibility for their financial well-being by being informed and making good decisions. Predatory lenders have a hard time taking advantage of people who do, which is why you should never take out a loan you can't afford to pay back.
The website service matches people who need quick cash with lenders who provide short-term, unsecured loans. To learn more about consumer protection and legal rights, visit The Center for Responsible Lending or http://www.paydayadvance.org.
Contact: Keith Roy
Media Relations Specialist
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