Private mortgage insurance (PMI) can be an expensive requirement for your home loan, as it adds more to your monthly payment costs. This is a safeguard that your lender will take out to cover a portion of the amount you borrowed in case you default. Up Next: P.I.T.I.: Understanding The Parts Of Your Mortgage Payment […]
How to Report a Predatory Lending Scheme
Predatory lending is not only harmful to you; it has negative economic effects on a community like:
Reporting predatory lending is important. Not only does it help victims of predatory lending, it also helps prevent it in the future by raising awareness. If you have been a victim of predatory lending when dealing with a Kansas City mortgage company, there are options available so you can report it to the proper authorities.
Filing a Complaint
When filing a complaint against a Kansas City mortgage company that has engaged in predatory lending, there are many places you can turn to:
- Your state Attorney General
- The Federal Trade Commission (FTC)
- The S. Department of Housing and Urban Development (HUD)
- The Consumer Financial Protection Bureau (CFPB)
State Attorney General
The state Attorney General is the chief legal officer of his or her respective state in the U.S. The Attorney General helps represent public interest in fields like:
- Child enforcement
- Consumer protections
- Utility regulation
Federal Trade Commission
The duty of the FTC is to protect consumers from “unfair, deceptive, or fraudulent practices in the marketplace.” It also gathers complaints and investigates various organizations and businesses, either publicly or in private.
U.S. Department of Housing and Urban Development
The HUD is responsible for improving and developing communities and enforcing fair housing laws. It helps protect against predatory lending by providing educational materials and services to report fraud to.
Consumer Financial Protection Bureau
While you can file a complaint to the Better Business Bureau (BBB), it does not take care of the problem in and of itself. The BBB is not a government agency, but a non-profit organization. Therefore, it doesn’t have legal powers. Rather, it raises awareness against the business through tracking complaints against it, and allows the business to respond to the customer directly. To get to the heart of the matter, it is recommended that you submit formal complaints to the correct agencies like the FTC or CFPB.