(Newswire.net — July 23, 2013) Port Richey, FL — The trends in the auto loan and consumer loan market that have occurred as of late have perhaps been a function of the economic collapse of 2007-2008. Easy pickings perhaps for the local lending businesses but at what cost to the consumer? Predatory lending has been around since the days of Shylock however what are the pitfalls to temptation for those that have no credit or even bad credit in their loan history?
EZ Loans of Port Richey, Florida discussed some of those things that the lending industry has gotten away with and what kinds of collateral damage can result thereof. Promises of term and conditions in short term loans has duped many into believing that some of these loans are the panacea for borrowing easy credit. The fine print and details is where lies the devil sometimes and can be long lasting with indelible results.
The financial institutions often times are not bona fide lenders that are regulated by the banking regulatory bodies that oversee their reserves and financial ratios that ensure the lending and depositor public. There are even financial brokers that represent themselves as behemoth lenders without a true balance sheet or income statement.
The newest and most dangerous emergence in lending has come from on line entities that has no face nor identity that can be traced while engaging in lending practices that can tie up borrowers and their financial conditions for long extended periods of time.
Usury rates or exorbitant interest rates that are quoted can look attractive at first, but when analyzed more thoroughly, can approach 40-50% per annum levels. Luce talks about privacy issues and how many lenders can request sensitive personal information without protecting it. Some institutions sell or share personal data that can be used for cold calling from account lists that have been narrowed down by industry or sector.
Luce has referred to this as “the Wild, Wild, West of lending” where almost anything goes. Many fast money places prey on the naïve and uninformed while they should be aware of what lies ahead. Caveat emptor or “buyer beware” is always prudent behavior when it comes to engaging with a consumer or car lender. Some loans are also difficult to repay where clauses of prepayment are not allowed or even penalized. Many of these “ghost lenders” as Luce describes, lack credibility and professionalism. With such a large field of participants, it is even difficult to regulate this industry.
For more car loan or consumer lending tips, contact: Consumer Financial Services- EZ Loans
(727) 862-2944 10431 US 19 N Port Richey, FL 34668 www.eznocreditloans.com
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