Dealing with Predatory Lenders
Unfortunately, there are certain lenders who engage in predatory lending practices, that is, behavior that forces a borrower to agree to unfair or abusive terms. Predatory lenders often use deception, coercion, and exploitation to force a borrower into taking their loan. These unscrupulous lenders often seek out individuals who may be easily taken advantage of due to their lack of understanding regarding financial matters. At Gagnon, Peacock & Vereeke, P.C., our lawyers are committed to ending predatory lending practices by bringing those guilty of it to justice.
Common Predatory Lending Practices
Predatory lenders have experience taking advantage of unfortunate situations. They know how to find individuals who are in dire need of quick money, such as sick people with medical bills or individuals with poor credit. Predatory loans can appear in the form of the following:
- Payday loans
- Car loans
- Tax refund anticipation loans
- Home mortgages
The effects of a predatory loan can permanently ruin a borrower’s credit history and bring about massive financial hardships, and sadly there is significant debate regarding what constitutes predatory lending. However, you should always look out for the following behaviors when seeking a loan:
- Misrepresentation of information such as costs or risks
- Outrageous risk-based pricing
- Inflated charges
- Loan packing
- Loan flipping
- Asset-based lending
- Reverse Redlining
- Balloon Mortgages
- Negative Amortization
- Unusual pre-payment penalties
- Mandatory Arbitration
While there are legal options that offer protection for borrowers, predatory lending can be a very difficult thing to prove in court.
Contact a Plano Bankruptcy Attorney
Our bankruptcy lawyers at Gagnon, Peacock & Vereeke, P.C., have extensive knowledge regarding bankruptcy law, and we can offer you help in dealing with your financial situation. Call our Plano office at (214) 317-4448 to begin building your case with a qualified attorney today.