AREAS OF PRACTICE
Lending & Credit Abuses
- Predatory Lending
We see the term “predatory lending” a lot these days, and the practices it represents have become all too common. These are most obviously seen in the mortgage market, but such abusive business practices do occur in other financial transactions.
Predatory abuses can often be simple and direct, such as steering a consumer into a more expensive transaction than is necessary, or adding unnecessary or inappropriate insurance coverage to a loan. Lenders have also been identified as manufacturing more complicated scenarios, mortgage transactions where, over time, the consumer loses all equity and ends up owing amounts that are far out of line with the original debt.
There is no actual law that specifically addresses or defines the term “predatory lending,” but such cases often fall under the Truth-in-Lending-Act and the Fair Debt Collections Practices Act. At Michael P. Malakoff, we have substantial experience representing consumers under both acts.
If you feel you have a situation that may be remedied by consumer class action litigation, please contact us, and we will be happy to talk with you about your situation. You will be under no obligation whatsoever.
Need more information?
To learn more about consumer litigation, visit the Learn section of this site.