People warned about borrowing from predatory lenders during pandemic | KOB 4

People warned about borrowing from predatory lenders during pandemic

Nathan O'Neal
Updated: March 25, 2020 06:28 PM
Created: March 25, 2020 05:03 PM

ALBUQUERQUE, N.M.- The coronavirus has paralyzed the economy, leaving many families wondering where they will get the money to survive.

Some New Mexicans are expected to turn to personal loans for help. However, financial experts want people to watch out for predatory lenders.


"It's a great time for predatory lenders," said Nadine Buerger, who works for U.S. Eagle Federal Credit Union. "So, title loans-- these amazing offers seem too good to be true that may give you a fast check upfront and then charge you with an APR that you will never be able to catch up and pay because they offer you, they promise you quick money. Stay away from that! Talk to your trustworthy local financial institutions."

For a limited time, many financial institutions are offering loans with low or no fees. But experts urge borrowers to shop around, ask a lot of questions and beware of fast cash coming from an unfamiliar group.

"If you just receive a phone call or an offer in the mail from someone you may have never heard of or if an offer sounds too good to be true, it usually is too good to be true," Buerger said.

Many financial institutions are still offering in-person visits by appointment or drive-thru options.

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