Predatory lending is a major concern in the United States. One 2001 study estimated that consumers lose an estimated $9.1 billion annually to predatory lending practices. Often, the predatory lenders use high-pressure sales tactics or deception to target the elderly, minorities, and those with lower incomes and less education — the very people who need fair lending practices the most.
In response to a rise in predatory lending, some states have recently enacted laws to combat specific practices. Additionally, predatory lending may be combated using consumer protection laws, or federal laws such as the Truth in Lending Act (TILA), Home Ownership and Equity Protection Act (HOEPA), and the Real Estate Settlement Procedures Act (RESPA). Richardson, Patrick, Westbrook and Brickman is actively pursuing cases on behalf of consumers who have been victimized by unscrupulous lenders.
You may be the victim of predatory lending if:
- Your lender made your loan based upon the equity in your home, without regard to your ability to repay, in the hopes that you will be forced into foreclosure.
- Your lender "packed" high fees or single premium insurance into your loan, rolling the costs into the principle, requiring you to pay interest on them over the life of the loan, with no real benefit to you.
- Your lender has solicited you to refinance your loan multiple times (called "flipping") and each time charged you additional fees or a prepayment fee for paying off the old loan, and concealed the charges in the new loan.
- Your lender hid the true nature of your loan obligation from you.
Some states have recently enacted laws to combat predatory lending, in addition to existing consumer protection laws, and federal laws such as the Truth in Lending Act (TILA), Home Ownership and Equity Protection Act (HOEPA), and the Real Estate Settlement Procedures Act (RESPA).
Since its inception, Richardson, Patrick, Westbrook & Brickman has been very active in the field of predatory lending litigation. RPWB attorneys have been appointed as class counsel in numerous class actions involving allegations of violations of federal and state statutes regulating mortgage lending and have obtained class settlements totaling well over $100 million. RPWB continues to be involved in cases alleging improper charges by lenders and abusive lending practices.
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contact us with any questions or if you'd like to explore your legal rights.
