Predatory Lending

Predatory lenders provide loans with higher interest rates than they charge other customers. They can also include unnecessary or questionable fees and less-than-ideal terms.

Encourage your students to avoid predatory lenders and work instead with established banks, savings and loans, and other financial institutions that are known to provide good service to the community. If your students have questions or concerns about certain financial services providers, have them ask the resources in their community, such as the tribal housing or legal department.

Here are some tips for avoiding predatory lenders:

• Don’t respond to telephone or door-to-door solicitations offering loan or financial services.
• Don’t be tempted by limited-time offers or intimidated by those who say you must make a decision immediately. Most true offers will be available when you’ve had time to consider all the options.
• Watch out for any fees or expenses that are not necessary. Ask a trusted advisor for advice if you're not sure.
• Don’t sign any form or agreement that you’re not absolutely sure about.
• When you do sign a form that you know is fair and represents the deal you agreed to, don’t leave any blank spaces. Instead, use “N/A” (not applicable) so that someone can’t later fill in information or requirements to which you did not agree.