Predatory Lending Class Action Attorney Serving California and Nationwide
The Kalfayan Law Firm is a premier defender of consumers and borrowers both within California and nationwide. If you or someone you care about was subjected to predatory lending practices, abusive collection tactics, bait-and-switch schemes, or other underhanded tactics, we’re here to help. There’s a good chance that you are not alone. With help from the Kalfayan Law Firm and our predatory lending class action lawyer, you can join with other abused borrowers and hold predatory lenders accountable for their reprehensible conduct.
Whether you have an individual complaint about a predatory lender or you have endured harm similar to dozens, hundreds, or thousands of other victims, the Kalfayan Law Firm is ready to help you seek compensation and justice. For help in California or across the United States, call our office in Del Mar just north of San Diego for a free consultation at 619-232-0331.
What Is Predatory Lending?
Predatory lending encompasses a wide range of unscrupulous tactics utilized to take advantage of unsuspecting borrowers. Lenders that impose abusive loan terms on borrowers, relying on the borrower’s lack of understanding or outright deception, may be guilty of predatory lending.
Anything that serves to maximize the lender’s earning capacity at the expense of borrowers, especially borrowers whom the lender knows will likely be unable to pay, may constitute predatory lending. Predatory lending practices are often connected to home mortgages, but they can also arise in areas such as abusive payday lending, home improvement and refinancing schemes, and others.
Common Predatory Lending Practices
At the Kalfayan Law Firm, our predatory lending class action lawyers help victim borrowers fight back against all manner of predatory lending schemes. Some of the more common predatory lending tactics we encounter include:
- Undisclosed fees and penalties
- Deceptive promises about low interest rates
- Large penalties for prepayment
- Loan approvals that disregard whether the borrower has the actual capacity to repay
- Deceptive ads regarding loan terms, charges, or fees
- Unnecessary balloon payments (final loan payments that are much higher than payments up to that point)
- Minimum payments that increase principal by failing to cover the interest owed
- Requiring borrowers to forfeit the right to sue
- Imposing abusive terms by way of aggressive sales tactics and false threats
- Discriminatory practices regarding loan offerings and terms, such as targeting specific marketing by race, gender, age, or ethnicity
- Home improvement and refinancing schemes
Predatory lenders benefit from these practices by collecting large up-front fees as well as collecting payments that essentially only cover the interest without touching the principal before the borrower inevitably defaults. If the loan is tied to collateral, such as a home mortgage or car loan, the lender then gets to repossess or foreclose on the property.
Protecting Yourself Against Predatory Lending
A number of federal and state laws prohibit predatory lending practices. Federal laws addressing predatory lending include the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act, and the Equal Credit Opportunity Act (ECOA). California also has its own consumer protection laws that address predatory lending in general and under specific circumstances, such as abusive payday lending.
Per these laws, creditors guilty of predatory lending can face civil or criminal liability. Predatory lending can serve as a defense against foreclosure or as grounds to rescind your loan without paying a penalty.
Additionally, with help from a California predatory lending attorney, you can pursue claims for damages against an unscrupulous borrower. You can recover your actual damages as well as punitive damages for egregious or willful conduct; given that their tactics are predatory in nature, punitive damages are often on the table. You can also help enjoin these lenders from utilizing their underhanded tactics on other unsuspecting borrowers in the future.
An experienced predatory class action and consumer defense attorney can evaluate your case, determine whether you’ve been the victim of unlawful lending practices, and help you explore your options for relief. Call a seasoned consumer defense lawyer at the Kalfayan Law Firm to discuss your situation and find out how we can help you.
Contact a Predatory Lending Class Action Lawyer at the Kalfayan Law Firm Today
For help with a predatory lending class action claim in California or nationwide, contact the Kalfayan Law Firm in San Diego/Del Mar for a free consultation. We represent local individual plaintiffs and pursue class action litigation throughout the country with commitment and dedication to seeing the case through to the end.