A predatory lending lawsuit can be brought against a bank, credit union, or mortgage company in California that fails to give its black borrowers fair and decent lending practices. These practices include severely increasing interest rates for adjustable rate mortgages, short sales, and other dishonest practices.
These predatory lending practices often come about from the denial of loans based on race, ethnicity, or national origin. One predatory lending lawsuit was brought against a bank in California because it did not allow some black borrowers who qualified for home loans to apply because they did not meet the minimum required minority percentage. The bank in this case discriminated against the black borrowers based on their race. The case ultimately lost but this is still a startling example of how a person can bring about a predatory lending lawsuit.
Predatory Lending Lawsuit
Another example of predatory lending lawsuit is a lawsuit that was brought against a New York lender over vehicle title loans. The lawsuit was brought by a middle class woman who was an African American female. She tried to get a car title loan through her employer but the lender would not grant the loan based on her employment status.
This meant that she had no choice but to drive to work each day using her own car. The lender used information that the plaintiff provided to deny the loan. She ended up having to pay thousands of dollars in legal fees as a result of this predatory lending lawsuit.
Some predatory lending lawsuits are brought against banks for their failure to provide home loans to people who needed them.
The predatory lending lawsuit in this case was brought by an unemployed factory worker who had spent most of his wages on his lavish car and had no other source of income.
This man’s only form of income was a little over one hundred dollars per week at his part-time job. The bank had given him a car title loan despite the fact that he could not afford to repay it. The court found in favor of the lender and he was awarded damages due to this exorbitant interest lawsuit.
The predatory lending lawsuit can also be brought against lenders for their failure to approve home loans to people who could not afford to repay them.
In this case, the plaintiff brought suit against the Bank of America, Countrywide and Wells Fargo to recover the money that he thought was owed to him by his failed business venture. He was represented by another attorney, who happened to be a former employee of the aforementioned companies.
The bank made an offer to settle the suit with a payment of just over two thousand dollars. The judge ordered the bank to cease collection efforts against the plaintiff and to immediately cease all collections efforts for the period of three months.
When the three months period expired, the lender once again began its predatory lending practices.
On appeal, the District Court of Arizona affirmed the decision of the lower court and found in favor of the plaintiff. The court found that the company’s initial rejection of the borrower’s application was justified and was meant to protect the company from having to return the application after finding out that it was incomplete and inaccurate.The lender failed to inform the court or the plaintiff that it would be predatory lending practices which would result in the denial of the loan.
In the final analysis, borrowers are advised to make sure that they understand all the facts when it comes to predatory lending.
When predatory lending is suspected, borrowers should look for a reputable lending company that has a good track record and that can be trusted. Borrowers should shop around for the best deal and should avoid predatory lending options such as home equity loans.
They should also understand their legal rights and how to go about filing suits against those who are abusing predatory lending. Finally, they should research their rights concerning privacy and credit score protection before engaging in any transaction regarding credit or lending.