Please see the following page to learn more about Lending Fraud.
Lending fraud, also called predatory lending, robs consumers of billions of dollars every year. Sadly, most lending fraud scams target the elderly and low-income earners who are strapped for cash and feeling financial pressure from creditors. The goal of such scams, unfortunately, is not to provide reasonable loans to those experiencing financial strain.
Rather, lending fraud scams exploit needy consumers by offering them high-interest, fee-laden loans. When consumers cannot repay the loans because of the exorbitant interest rates and fees, predatory lenders resort to harassing and even unlawful collection strategies.
Loans that take advantage of unwitting consumers are illegal. Learn more about how to recognize lending fraud.
If you feel that you've been a victim of lending fraud, you may be entitled to recover damages through a consumer fraud lawsuit. Please contact us to speak with a qualified attorney who can evaluate your claim and help you understand your legal options.
Lending Fraud and the Law
In 1968, Congress enacted the Truth in Lending Act (TILA) to protect consumers against unfair credit-related practices. With regard to lending practices, this law requires lenders to:
- Disclose certain information in a clear and conspicuous way.
- Make disclosures in writing that is meaningfully presented.
- Provide consumers with a copy of the written lending disclosure.
The Act further requires lenders to disclose the following information:
- Identity of the creditor
- Amount financed, including an itemization
- Annual percentage rate, including applicable variable-rates
- Finance charges
- Length of loan/total number of payments
- Payment schedule
- Prepayment and/or late penalties
Where applicable, the law also compels lenders to disclose any security interest, insurance, deposits, or other costs.
Violation of any of these requirements may constitute lending fraud. Consumers who have been victims of lending fraud may have the right to recover damages - actual and statutory, including attorneys' fees and court costs. Moreover, a group of consumers who have suffered similar damages may be entitled to pursue a class action consumer fraud lawsuit.
If you have been the victim of lending fraud, it is important to report your claim with your local office of consumer affairs or your state Attorney General. The Federal Trade Commission - the national government agency that protects consumers - also investigates reports of lending fraud. The FTC will not resolve individual cases of lending fraud, but it does ensure that the law is enforced.
A qualified consumer fraud attorney may be able to help you if you've been the victim of lending fraud. Please contact us to speak with one of our experienced consumer advocates who can help you understand your legal rights and determine a course of action.