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Predatory Lending Claim Lawyers
Recently, predatory lending has grown significantly. Each year, nearly one million loans are made with unreasonable terms and abusively high lending fees. Many of these victims are the elderly, poor and minorities who do not have the educational or financial means to acquire a loan. Because of these terms, many of these victims are unable to pay their loans and their properties end up in foreclosures.
What are Some Common Predatory Lending Practices?
Some common predatory lending practices can include:
- Bait and Switch: Lender offers one set of terms when the borrower applies for a loan, but changes them for worse terms at the time of the loan's closing
- Fraud: Concealment and fraud by the lender of the loan's terms
- Prepayment penalties: Lender charges exorbitant fees if the borrower pays off the loan earlier or refinances
- Loan flipping: Lender provides unnecessary refinancing of the loan with no apparent benefits to the borrower
- Balloon payments: A loan with an outrageously high payment due at the end of the loan's lifetime
- Equity Stripping: Lender makes a loan based on the borrower's home equity, regardless of borrower's ability to repay the loan
- Insurance Packing: A loan that charges borrowers for services that a borrower does not need or want
How Do I File a Claim against Predatory Lenders?
The law provides many different grounds by which a claim can be brought against a predatory lender. These can include suits based on violations of:
- Breach of Contract
- The Truth in Lending Act (TILA): assures disclosure of credit terms
- The Home Ownership and Equity Protection Act (HOEPA): protects against lenders offering loans with worse terms to residents of certain locales
- The Real Estate Settlement Procedures Act (RESPA): provides more effective disclosure to home buyers of settlement costs
- The Equal Credit Opportunity Act (ECOA): prohibits discriminatory treatment by lenders
- Fraud
In addition, there may be local or state statutes under which you may bring a predatory lending claim.
What Can I Recover from Predatory Lenders?
What a person may recover from predatory lenders depends partly on what doctrine a claim is brought against the lenders. Some remedies that may be available can include:
- Rescission of the loan contract
- Actual damages sustained by the predatory lending
- Statutory damages
- Attorney's fees and costs
- Enhanced monetary damages, including all payments made by the borrower
- Punitive Damages
- Equitable relief, including specific performance in some cases
Do I Need an Attorney for my Predatory Lending Claim?
If you feel you have been a victim of predatory lending and your house is about to be foreclosed, you should consult an experienced property attorney to discuss your legal remedies and options. A property lawyer can help you file any necessary paperwork and represent you in court.
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