Predatory mortgage lending targeted

Instead of borrowing trouble, officials hope home buyers will take some free advice instead.

Local government and nonprofit agencies, along with mortgage giant Freddie Mac, are trying to reduce predatory lending practices through a campaign called Don't Borrow Trouble Pima County. The consumer campaign is based on a Freddie Mac program that has been used in more than 40 metropolitan areas across the country.

Freddie Mac says predatory lending can include repeatedly refinancing a loan over a short period of time while charging fees, including those for credit insurance, without fully disclosing the charge, and charging rates above what a borrower would qualify for.

The program is beginning with a publicity campaign about the dangers of predatory lending and a local hot line, 792-3087. The hot line offers advice about mortgages and referrals to local agencies for more information.

Although a full-time program coordinator has yet to be hired, calls are being taken at the hot line. Each call will be "triaged" and referred to agencies that may be able to offer advice or help, said Sandy Fagan of the Southwest Fair Housing Council.

The yearlong program has a budget of about $67,000, not including in-kind contributions from participants, said county Supervisor Richard Elias, whose office will oversee the program. The AARP, the state Attorney General's Office, Hughes Federal Credit Union and Southern Arizona Legal Aid are among the more than two dozen participants.

Elias said he hopes to expand the program by finding new funding sources and bringing in more participants, such as local mortgage brokers.

The rising cost of credit card balance transfers

More and more credit cards are charging people looking to transfer a credit card balance.

And not only are the number of cards charging increasing, but the amount charged is on the increase too.

Currently only 17 of the 133 credit cards that offer balance transfers are limiting the amount they charge - meaning customers could be charged as much as £300 to transfer a balance, research from comparison website MoneyExpert.com shows.

"Playing your cards right is becoming more and more difficult as credit card providers raise the stakes on balance transfers," said MoneyExpert chief executive Sean Gardner.

"The days of easy credit and companies falling over themselves to allow customers to switch between cards are over. Rate tarts are being forced to raise their game as providers take a tougher line."

Maximum fees for balance transfers are now as high as three per cent, currently being charged by nine credit cards, with the average balance transfer fee at 2.1 per cent.

Credit card companies target students

University of Pittsburgh sophomore Ryan Kavcsak was annoyed by the repeated phone calls during his freshman year from companies urging him to apply for a credit card.

"They would call and ask for personal information, how old I was, stuff about my parents, where I live. My friends would get calls. I ended up hanging up on them," Kavcsak, 19, said.

"They would call and ask for personal information, how old I was, stuff about my parents, where I live. My friends would get calls. I ended up hanging up on them," Kavcsak, 19, said.

While some states and schools have moved to limit companies' access to campuses, many schools, including the University of Pittsburgh, are working with credit card firms and some are making money from the arrangements.

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