For a period of time in the United States, lenders were handing out loans to anyone who may or may not have qualified for them. Some lenders were also engaging in lending practices that were deceptive, unfair or even fraudulent. These practices are called predatory lending. If a borrower has fallen victim to predatory lending practices, they may be facing a large amount of debt; debt that they would not have agreed to take on if the lender had been honest and clear about the terms of the loan.
At Gogel & Gogel, we are dedicated to standing up for clients who have been victimized by predatory lenders. We have a full understanding of the Massachusetts case law that addresses predatory lending. Our firm can help you understand what your options are for dealing with a situation where a lender has preyed upon you.
Just because the loan is in default does not mean that you have a claim. However, an experienced member of our firm can examine your situation to determine if you do have cause to file a claim on the basis of predatory lending.
Time Restrictions on Filing a Claim
It is important to note that if you do believe you have been the victim of a predatory loan, you need to take immediate action. The consumer protection statute that covers predatory lending sets a four-year statute of limitations. That is, you only have four years from the date of the loan in which to seek a remedy for your situation.
Factors of Predatory Lending
There are a few main factors that must be examined in order to determine if a loan was extended in a predatory manner, such as:
- Was a loan a loan with 100 percent financing?
- What was the introductory interest rate?
- How long was the introductory period?
- What was the interest rate to increase to after the introductory period was over?
- Was the loan designed for you to have to refinance only to have the equity stripped?
Gogel & Gogel can examine all of your loan documents to determine if any of these factors played a role in your securing of the loan.
Decrease in Predatory Lending
Due to the sheer number of predatory lending situations that have surfaced, there are now protections in place that did not exist when the loans were made. These protections are for the benefit of the consumer. Though it may be more difficult to obtain a loan, it is less likely that the terms of the loan will fall under the category of predatory lending.
For more information on predatory lending, mortgage fraud or other issues related to a bankruptcy, contact a lawyer at our Springfield, Massachusetts, office today and schedule your free initial phone consultation. Each of our cases is billed on a flat fee basis.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
