View Predatory Lending Brochure

New York City Comptroller William C. Thompson, Jr. has released a new public service announcement and brochure warning consumers about the dangers of predatory lending.

“Have you ever received an ad for a loan and thought, this is too good to be true,” Thompson asks in the public service announcement. “Chances are it probably is…You should know that some mortgage lenders will mislead you into borrowing more than you can pay – and it could cost you your home.”

Deceptive, or predatory, loans charge more in interest and fees than is required to cover the added risk of lending to borrowers with credit imperfections. They pack fees and products onto loans that trap borrowers and lead to increased indebtedness.

Predatory lenders target first-time home buyers and homeowners who are interested in making repairs to their residence. Others offer credit card holders lower interest rates but those low rates are only effective for a few months. Research indicates that predatory lenders exploit vulnerable borrowers, most of whom are elderly, the working poor, women and minorities.

Thompson warns New Yorkers that, before borrowing money, they not sign anything that they don’t understand, not rely on a salesperson’s assurances, and always ask for everything in writing.

NYC TV began airing the announcements this week. Thompson additionally is publishing new brochures – in English and Spanish – later this month.

Anyone who believes they may have been a victim of a predatory lender should contact the Comptroller’s Community Action Center at (212) 669-3916 or action@comptroller.nyc.gov.

The public service announcement was produced by the City's official TV network, NYC TV.