Ads and direct mail pieces that show interest rates below the real market, happen all the time. The reason this bait and switch stuff continues in spite of the people and companies that keep doing it because they continue to find unsuspecting borrowers that respond.
At least once a week I am contacted by previous clients that ask, is this possible. Last week it was a 30 year fixed rate loan at 2.5% and no closing costs. One immediate tip-off should be that the promotion does not show an APR, which is required in all such advertisements.
Remember, when its too good to be true, it always is. This article discusses a couple of scams that have been popular.
3 Popular Lending Scams and How to Avoid Them
By: Corey Curwick Dutton
