Laws Governing Predatory Lending
There are many laws protecting consumers from predatory lending. These laws are both federal and state based and can be used to defend people’s rights against illegal and unscrupulous business practices. Unfortunately throughout the Southern California region people like the elderly, retirees, immigrant families who speak little or no English, and the poor and uneducated are targeted by predatory lenders because they do not understand their rights. If you have any questions about your legal rights against predatory lenders please contact our office immediately.
The federal based Truth in Lending Act (TILA) was an important law that protects any consumer against fraudulent behavior from businesses lending money. These laws, passed by Congress in 1968, require lenders to disclose everything about the loan in clear and understandable terms. These disclosures must list all possible charges and fees as well as payment schedules and other relevant information. If a business in the Orange County area fails to do this they can be legally pursued and damages can be sought from them.
The Real Estate Settlement Procedures Act (RESPA) protects people engaged in buying real estate against unscrupulous business practices and certain costs. RESPA primarily deals with the closing costs and the closing of the deal surrounding a loan for real estate. Businesses must disclose information about the closing period and certain financial commissions given between loan companies and real estate brokers or agents. Some commissions are illegal, though commonly given.
Other federal laws such as the Equity Protection Act (HOEPA) can also be used against any business involved in illegal predatory lending practices. California also has several state based laws against predatory lending as well. These laws cover such practices as “flipping” which is when a loan company offers to give the same person multiple loans over a period of time in order to cause the rate to go up or down. California laws also protect against “packing” which is when a company adds charges, fees and other items to the contract without informing the borrower. For more information about California predatory lending laws contact our office.
Predatory lending laws also cover ways in which businesses can and cannot interact with you if you owe them money. Such tactics as hard-handed phone calls or visits, threats to your livelihood or financial state, threats to take away your home or property are all common and yet highly illegal. If you are being threatened and harassed by one of these debt collectors on behalf of a predatory lender contact our office.
Bisnar & Chase has years of experience handling predatory lending law throughout Southern California including all of Orange County. We are one of the few law offices offering free and confidential consultations on any predatory lending case. Most predatory lending suits are handled via contingent fees which mean that you only pay us if we are successful in settling your case. This allows you to have the professional legal representation you need without worrying about paying expensive legal fees upfront.
