Common Forms of Predatory Lending
Some of the most common forms of predatory lending in the Orange County region involve real estate. Other loans, such as car or vehicle loans or loans for other expensive items can also involve predatory lending however. Any act by a company that deceives a person seeking a loan can be a form of predatory lending. During California’s recent dramatic home value increase the number of predatory lenders also increased. If you are concerned about being the victim of one of these lenders please contact us for a free consultation.
One troubling form of Orange County predatory lending occurs when a company over-values a home or property. These companies create false values on homes or property in order to sell them at very high prices. The increased price is then given to the lender who feels that they must buy at that price because it was appraised at that value.
Another form of predatory lending is when a company encourages potential borrowers to falsify information on their loan application. The false information, including fake and inflated income, is then used to obtain very high amounts of money that the borrower essentially cannot ever repay. In addition the illegal practice of predatory lending covers companies who allow borrowers to borrow these extremely high amounts even though they know they can’t afford to repay them.
Predatory lenders throughout Orange County also commonly charge high fees for services that are not performed and even raise the percentage rate of the loan after promising a lower rate. Another common form of predatory lending occurs when a borrower is encouraged to accept an uncommon loan such as an interest-only loan or balloon loan that ultimately results in the borrower unable to make payments at all. Some predatory lenders are also involved in refinancing homes when no reason exists for it or making the homeowner take out expensive loans to pay for home improvement projects that are set at very high rates.
Predatory lending is not limited to real estate. Vehicle sales involve extremely unscrupulous car dealerships who offer very low rates to people who need a car or vehicle. These rates are often very different from the ones the dealership quoted them or the people are locked into a lifelong contract that they ultimately cannot pay for. This practice is illegal, however, and people can recover their lost damages because of predatory lending regardless of what the money was used for.
Bisnar & Chase have years of experience dealing with predatory lending law throughout Orange County, the Central Valley and Southern California. If you believe you have been the victim of a predatory lending scheme please contact our office for a free consultation. Our lawyers can begin working on your case as soon as you contact us without any down payment or expensive upfront legal fees. We work most predatory lending cases via a contingent fee which is a preset amount of a successfully won case only. If we cannot settle your case you do not owe us these fees. Contact us for a no-obligation case evaluation and begin your healing process.
