The Department of Consumer Services (DCS) is warning Chicago residents about companies that solicit business by mailing flyers that offer loans with low interest rates for home repair and debt consolidation services. These companies promise low-cost loans, and then charge extra fees or high interest rates, or simply accept payments without starting or finishing repairs. Home repair fraud often goes hand in hand with predatory lending, as unscrupulous lenders target people for the equity in their homes.
When considering an unsolicited home repair or loan offer, remember these tips. If something seems too good to be true, it probably is. Be cautious of mailings that indicate unlimited funds are available, or allow you to estimate the cost of your home repairs.
Legitimate businesses will offer numerous ways to contact them, including phone numbers and street addresses, not just a return card to a post office box. Do not trust mailings that mention government loan programs without providing more details. Always research any company before signing a contract. Ask for at least three references from satisfied customers.
Be skeptical of offers of low-interest rate loans for people with bad credit. By law, home repair contractors are not permitted to recommend lending institutions for loan options.
If you are the victim of predatory lending or home repair fraud, call 311 to file a consumer complaint. |
