In order to increase their corporate profit, some corporations engage in unlawful lending practices that prey on consumers and communities. Predatory lending means imposing unfair and unlawful loan terms on borrowers, often by taking advantage of borrowers’ lack of understanding about extremely complicated transactions. Predatory lending costs Americans billions of dollars annually, through abusive mortgage loans, payday loans, tax refund loans, excessive credit card fees, and other lending scams. Companies engaging in these lending practices often fail to inform consumers about the nature and amount of fees, charges and interest rates, and rely on the fact that many individuals do not have the time or knowledge to pursue their rights. In addition, companies may be engaging in the following unlawful practices:
- Knowingly lending more money than a borrower can afford to repay.
- Charging high interest rates to borrowers based on their race or national origin and not their credit history.
- Charging fees for unnecessary or nonexistent products and services.
- Targeting vulnerable borrowers to accept higher-risk loans or financing strategies that give little if any benefit to the borrower.
California, like many states, has laws designed to protect consumers from such unlawful practices and provide a remedy to those who have been harmed by them. The Sturdevant Law Firm has years of experience and a long record of success in enforcing these laws in class action lawsuits on behalf of consumers. We believe that such lawsuits are essential to protecting consumers from predatory lending and deterring corporations from taking advantage of consumers.
If you think you have been subjected to predatory lending, please contact us.