The FTC has warned lenders about potentially deceptive advertisements as it relates to the cost of loans. There is nothing shocking here. About 200 companies were told about “potentially deceptive” ads.
While this is focusing on home loans, all borrowers should be cautious about the cost of borrowing money. I have previously written about the cost of borrowing from a “payday lender” and how the costs can hit 99% interest and more. You have to be aware of this if you are going to borrow money.
At the same time, the lenders need to clean up their ads and make the cost known – IN PLAIN ENGLISH! A good start would be having them read “Party of the First Part” and re-writing their contracts. Alas, while that is not likely to happen, maybe they can at least explain things a bit better.