Predatory Lending
Beware This Growing Scam!
Here’s a scary article (free registration required - NY Times). It’s especially scary, because it could happen to anyone who’s ever experienced dire financial straits but still needs a particular product, be it for educational or business purposes. And the most ubiquitous such product? The computer. It seems an entire industry has sprung up dedicated to serving fleecing these people by offering them the moon, delivering a broken moon rock, and taking way more money than the rock’s worth.
You’ve seen the ads yourself, I’d bet. “No credit? Bad credit? Still need a computer? Now you can have the computer you deserve and need!” Sure, but…:
- Only after you make weekly payments of $40 or more for three solid months
- And then you might get a broken computer (as the mom did in the story linked above)
- And when you complain, you might get another one … and another one (as also happened to her)
- And when you finally have had enough and demand your money back, as is your right under consumer laws? Only when you complain for a long, long time to the Better Business Bureau and state officials.
This story had a happy ending, but only because the consumer got smart and used the resources available to her to get out of this predatory lending scheme. The lesson for consumers everywhere is simple and straightforward: Be wary, get educated, and don’t be afraid to fight.
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I loved your article about predatory lending. I
have a similar experience however, not in the
lending area.
I purchased Russell Sweats on-line from a company called
The Sock Company, 40 Carver Avenue, Westwood, NJ
07675. They sent the item although the wrong size.
I sent it back by UPS. They said (in numerous
E-mails) that they would send the credit to me.
They have not. I reported it to the FTC, and they
were also no help.
I purchased on line from a company I was not
familiar with. I won’t do it again.
I am still out the thirty dollars.
Thanks, Sincerely,
William Schafer
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