This story appeared in Bank Digest.
The need to borrow money quickly to make needed repairs following a natural disaster can leave families susceptible to deceptive lenders, the CFPB has warned in a post on its blog. The agency pointed to home improvement loan scams in particular, urging consumers to be wary of the following warning signs:
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The contractor demands full payment up front or in cash only. The contractor has no physical address or refuses to show ID.
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The contractor requires the consumer to disclose personal financial information (perhaps to "speed up payment") to start the repair or lending process.
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The contractor steers the consumer toward a particular lender or tries to act as an intermediary between the consumer and a lender.
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The consumer is asked to sign something without enough time to review it.
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