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Many borrowers are in trouble today because they used sub-prime home loans or are victims of predatory lending.

Sub-Prime Mortgage

A sub-prime mortgage is a loan made to a borrower who does not qualify for a prime mortgage, often because of a low credit score. A sub-prime mortgage carries a higher interest rate, making the loan payment more expensive. Some of these loans start by using a low interest rate which later is increased, sometimes significantly. This may make the payments too costly for the borrower

Predatory Lenders

Be cautious of lenders who offer to refinance your home. If the lender does not clearly explain the terms and the costs of the loan, does not seem concerned about your ability to pay, or offers a higher interest rate or a rate that gets higher over time, the loan may not be in your best interest. If a deal sounds too good to be true, it probably is. Lenders who offer you deals that are not in your best interest are predatory lenders.

	For more information on predatory lending and ways to avoid it visit the Pine Tree Legal Association website.
	Another source of valuable information may be found at www.dontborrowtrouble.com.

How To File A Complaint

If you have a complaint with a mortgage lender or debt management agency, you should report it to the Office of Consumer Credit Regulation. They will investigate your complaint and help you enforce your credit rights.
	Office of Consumer Credit Regulation 35 State House Station Augusta, Maine 04333-0035 (207) 624-8527 Consumer Toll Free Line: 1-800-DEBT LAW (1-800-332-8529)

Credit complaints dealing with banks and credit cards should be referred to the Maine Bureau of Financial Institutions.
	Consumer Outreach Program Bureau of Financial Institutions 36 State House Station Augusta, Maine 04333-0036 Telephone: 207-624-8570

For more information on consumer law, see the Maine Attorney General’s Consumer Law Guide.