In recent years, consumer frustration with banks and other financial institutions has boiled over. While much of the frustration stems from unpopular bank bailouts, many consumers are also fed up with predatory lending practices, which appear designed to take advantage of borrowers at every turn.
Predatory lending practices include those in which the lender charges excessive fees and interest rates, lends without regard to the borrower’s ability to repay, refinances a borrower’s loans repeatedly over a short period of time without any economic gain for the borrower, or commits outright fraud or deception. Nichols Kaster is currently investigating abusive bank practices related to the following:
Consumers experiencing abusive lending practices pay much more for their loans than other consumers and often get trapped in cycles of debt from which they cannot emerge. Fortunately, there are many laws that protect consumers against abusive lending practices.