Predatory Lending
Predatory lending is a major concern in the United States today. A study done in 2001 estimated that consumers lose approximately $9.1 billion annually to predatory lending practices. Many times, the predatory lenders will use high-pressure sales tactics or deception to target the elderly, minorities, and those with lower incomes and lesser education - the very people who need fair lending practices the most.
In response to a rise in predatory lending, many states, including Ohio, have recently enacted laws to combat specific practices. In addition, predatory lending may be combated using consumer protection laws or federal laws such as the Truth in Lending Act, the Home Ownership and Equity Protection Act, and the Real Estate Settlement Procedures Act.
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 foreclose
- 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 to you
Many of our clients have also experienced problems, including the following:
- Predatory refinancing practices
- Failure of mortgage companies to post payments on the date of arrival
- Sudden changes in terms of a mortgage in the last minutes before closing
- Improper rate adjustments on adjustable rate mortgages
- Violation of the Fair Debt Collection Practices Act
- Failure of mortgage companies to respond to correspondence
Robert D. Erney will represent you with honesty, integrity, and compassion in your predatory lending case.
