And it is not just the unsophisticated borrower who is at risk. However, the fact remains that the prime targets of abusive lending practices are the elderly and low-income. The following information is intended to help Ohio consumers understand the nature of abusive lending practices, how to avoid them, and where victims can get help. High interest rates. High front-end insurance premiums.
Balloon payments a large, final payment at the termination of the loan.
Obtain a copy of your credit report and credit score before applying for a loan or mortgage. If necessary, consult Consumer Credit Counseling Services. Check with the local Better Business Bureau before doing business with a lender or mortgage broker. Shop around for the best loan for your situation. If you have a relationship with a bank or savings and loan, consult them first regarding the best mortgage and loan rates.