We Can Help! Predatory lending litigation and unfair debt collection practices have rapidly increased in the United States in the past couple of years, because of the recent trend of wrongful foreclosures and mortgage fraud.
Predatory lending involves the misleading tactics of lenders and mortgage brokers to convince borrowers to agree to unfair and abusive loan terms, or by using unfair and illegal tactics to collect money from consumers. These lenders, mortgage service companies, mortgage brokers, and bill collectors are breaking the predatory lending laws that protect a borrower’s rights.
7 Types of Predatory Lending Practices
Here are the most common debt collection practices and abusive mortgage lending tactics that we fight about in predatory lending litigation:
1) Systematic violation of the Fair Debt Collection Practices Act: We see this all the time in predatory lending cases, and it involves practices such as:
- Failing to notify borrowers of the names of service companies or lenders who purchase your loan from the previous lender
- Creating artificial deficiencies, such as failing to post your payments properly.
- Initiating predatory lending litigation when they do not have the legal right to do so.
2) Violates the Truth in Lending Act (TILA): This tactic includes, but is not limited to:
- Failing to provide you with a proper settlement statement (HUD-1) or by switching the terms of the HUD-1 at the last moment.
- Failing to provide an accurate TILA disclosure statement at closing.
3) Kickbacks (RESPA) violations): The overall cost of the real estate transaction increases because of the kickbacks between lenders and third parties. The U.S. government passed The Real Estate Settlement Procedures Act (RESPA) to prohibit the use of kickbacks in real estate transactions.
4) Flipping: This is an abusive mortgage lending tactic that happens because a borrower is constantly being flipped from one loan to another. This form of abuse is extremely profitable to the lender, but is devastating on the borrower’s ability to pay off the loan.
5) Packing: This abusive tactic involves placing unnecessary property, life and/or disability insurance on the property for no other reason except for the lender’s increased profit.
6) Equity Stripping: This scheme is so that the equity in your home is pledged to a high risk separate loan. This results in consumers losing their homes. Those who are overly trusting are easily preyed on using this abusive lending tactic.
7) Harassment: This is an unfair debt collection practice that occurs when a credit collector calls a borrower repeatedly, at their work and home, making untrue or threatening statements, and using profane language.
Act now if your rights as a borrower have been violated!
It is very important that you retain an experienced predatory lending litigation lawyer who can act quickly on your behalf! We want to preserve your rights, keep you from losing your home and save your credit before it’s permanently ruined.
For a consultation on your rights contact Brian Lee, predatory lending litigation attorney.