|
Tip# 6
Top Ten Dangers to San Diego Metro Area Consumers
1. San Diego area used car dealers who offer to “tote the note” for
consumers who purchase cars on credit. Usually the so-called price of
the vehicle is 3 to 4 times the actual market value and the vast
majority of the cars are in less than sound condition. This sales
practice creates a “hidden interest” on the real value of the vehicle
that approaches the rate of pay day loans.
2. Credit Card Banks that exercise the dreaded “universal default” terms
of the fine print of the card-agreement so as to raise the interest rate
to 35.99% if a San Diego area consumer fails to pay the utility bill on
time.
3. Credit Card Banks who encourage San Diego area consumers to pay the
minimum balances each month so as to guarantee that they will be paying
the banks for the rest of their natural lives. And, then when they have
built up a high enough balance with a good enough minimum payment
history, the Banks then offer them more pre-approved cards and increase
the approved credit balances on the old cards.
4. San Diego area Pay Day lenders who charge consumers more than 100%
interest for a $300.00 two week loan. And, if they fail to pay, then
threaten them with a civil action for legal fees at best or with a
criminal prosecution for a worthless check at worst.
5. San Diego metro area car dealers and lenders who up-sell area
consumers into high interest contracts and leases with all sorts of
bogus fees and charges including credit life insurance, credit
disability insurance, extended warranty contracts, document preparation
fees, undercoating fees, VIN stenciling fees, delivery fees, vehicle
preparation fees, and every other fee they can either think of or get
away with. And, then, just to make matters worth force consumers into
higher interest and more expensive vehicles by yo-yo sales, bait and
switch sales, and spot deliver sales.
6. Mortgage Servicers who fail to timely apply California mortgage
payments to the outstanding balance, who charge improper late fees, who
buy insurance from their own companies when the consumers actually have
insurance, who add bogus legal fees, property appraisal fees, property
inspection fees, and all sorts of other fees to the mortgage loan. In
many cases, the addition of these fees and charges creates defaults that
lead to improper foreclosures.
7. Mortgage Originators who entice San Diego area consumers into
unaffordable mortgage loans with all sorts of Adjustable Rate Mortgages,
Interest-Only Mortgages, Interest-Loan Increasing Balance Mortgages,
High Interest Home Mortgages, 125% loan to value mortgages, first and
second combination mortgages, and all varieties of fixed rate mortgage
loans. Many of these mortgage originators also kick-back hidden fees to
the mortgage brokers and use inflated and bogus appraisals to justify
the amount of the loan.
8. San Diego area Rent to Own and Rent to Buy operations that lure
consumers into easy no-money-down lease-purchase contracts with no
credit check that in many cases require the California consumer to pay 3
to 4 times market prices for their consumer goods and to pay hidden
interest rates that approach and in some cases exceed the rates charged
by the pay-day lenders.
9. California Mobile Home dealers who engage in the same practices as
the mortgage lenders with the addition of the “land package” deals that
only serve to double their opportunities for more unlawful acts and
practices and t garner even more illegal profits.
10. The Debt Buyers who purchase hundreds of thousands of “charged off”
accounts from creditors for virtually pennies on the dollar and then
proceed to aggressively attempt to collect the accounts against
Californians whether or not the debts have been discharged, settled,
paid in full, barred by the statute of limitations, or canceled in a
bankruptcy case.
If any of the above dangers to the San Diego metro area consumer appear
familiar to you, please make arrangements to see one of our bankruptcy
attorneys. Absolute bankruptcy attorneys have offices around San Diego
California.
