Most people have heard of predatory lending and wonder if they were a victim of it. Predatory lending is a pejorative term used to describe the unfair and deceptive practices of some lenders. There are no legal definitions in the United States for predatory lending, even though there are laws against many of the specific practices commonly identified as predatory. Basically, various federal agencies use this term as a catch-all term for many specific illegal activities in the loan industry. In a predatory lending situation, the party that initiates the loan often provides misinformation, manipulates the borrower through aggressive sales tactics, and/or takes unfair advantage of the borrower’s lack of information about the loan terms and their consequences. The results are loans with onerous terms and conditions that often result in the borrower being unable to keep making payments and eventually lead to foreclosure or bankruptcy.

As a result of the meltdown in the mortgage and banking industry, we are routinely sought out to assist and defend clients. Our attorneys are familiar with the Truth in Lending Act, 15 U.S.C. §1601 et seq. ("TILA"), as amended by the Home Ownership & Equity Protection Act of 1994, 15 U.S.C. §§1602(aa); 1639 ("HOEPA"); Federal Reserve Board Regulation Z, 12 C.F.R. part 226, the Fair Debt Collection Practices Act (FDCPA), the Fair Credit Reporting Act (FCRA), Real Estate Settlement Property Act (RESPA); the Unfair and Deceptive Practices Act (UDPA). They are also familiar with the laws protecting borrowers from the intentional or negligent infliction of emotional stress. A violation of any of the above may provide a basis for one or more claims against your lender.

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