We have all heard of predatory lending. You know what I mean: the mortgage lenders that take advantage of us hard working Latinos when we want to buy a home and realize the American dream. 

We work 16-hour days for years and save diligently so we can pay our friendly mortgage professional incomprehensible fees.  If you haven’t seen them, I’m talking about an application fee, appraisal fee, mortgage insurance, documentation fees, title insurance fees and others too long to list. The fees can be endless if we allow them.  This, by the way does not include the lawyer’s fees, who you should know, receives a commission for writing the title insurance on top of the title insurance fee.

If we are lucky we will receive a good interest rate, but don’t count on that. Most likely we will have a higher rate (due to the fact that we have not had ten active credit cards) or a variable that within a couple of years will make our $200,000 mortgage feel like we have financed Rockefeller Center.

But, have you heard of predatory banking?  Here is how it works; you deposit $1,000 cash into your account at 4pm.  The next day a check hits your account but somehow you do not have the money available, I know what you are thinking: but I deposited cash?!  If you are lucky they do you a favor, pay on the check(s) and charge you $35 for every check.  If this is done with a debit card they allow the charges to go through and charge you $35 for every charge.  In most cases they bounce your checks and still charge you. 

Banks actually put a hold on cash, some say that if you deposit the money into the ATM it is available, but if you hand the teller $1,000 cash it is not. Boy does that makes sense to you?  They see in the system that the deposit was cash, yet they process it as if it is not available then charge us fees galore.  Incidentally that very night the bank is investing that money they have on hold and earning interest on it, multiply this by billions of dollars and you can see why they can continue to report profits for “innovative” sources.

This system is purposely and maliciously structured to pillage the working man/woman or family that lives paycheck to paycheck and cannot afford to keep a substantial cushion in their checking account.  Make no mistake; this is an income stream for the bank.

My advice: Fight for every dollar; do not give the lenders and the banks the opportunity to steal your money.  Until the laws change it may be legal, but don’t be fooled; it is theft.  Be tough, think clearly and without emotion.  Lenders will not spare your emotions and your pain when they start the foreclosure on your home.

Monitor your checking account; be aware of their cut off times, if you can, set up a small savings account to prevent bounced checks. Shop for a bank or credit union that supports you, it is your money and we work damn hard for it!  Pass it on!!!