What are Some Common Predatory Lending Practices?
Some common predatory lending practices can include: • Bait and Switch: Lender offers one set of terms when the borrower applies for a loan, but changes them for worse terms at the time of the loan’s closing • Fraud: Concealment and fraud by the lender of the loan’s terms • Prepayment penalties: Lender charges exorbitant fees if the borrower pays off the loan earlier or refinances • Loan flipping: Lender provides unnecessary refinancing of the loan with no apparent benefits to the borrower • Balloon payments: A loan with an outrageously high payment due at the end of the loan’s lifetime • Equity Stripping: Lender makes a loan based on the borrower’s home equity, regardless of borrower’s ability to repay the loan • Insurance Packing: A loan that charges borrowers for services that a borrower does not need or want How Do I File a Claim against Predatory Lenders? The law provides many different grounds by which a claim can be brought against a predatory lender. These can include suits bas
