Recourse Against A Bad Lender – Do You Have Any?

Yes, of course, you have recourse against a bad lender, this is America and we have regulations in this country, this isn’t Russia, is this Russia? 

So called predatory lending is a big no-no and if you can prove that your lender took advantage of you and broke the law you might be able to go after them in a court of law and get your sweet revenge.

Predatory lending is when a lender basically does the following: charges too much for a loan, or sells you features, options, and services on the loan that you don’t need or want.  The thing is just because a lender is a licensed lender doesn’t mean that they are honest or that they can lend without any restrictions.  If they are deceptive, rest assured, they can be prosecuted under the law.

In the loan business there are good lenders and bad lenders, good banks and bad banks, if you, unfortunately ran into one of the bad ones and got ripped off in the process then you definitely have avenues towards recourse.

Believe it or not, there are limits on how much lenders can charge on loans, yes, we do not live in an unregulated purely capitalistic society, no matter what some folks may promulgate, there are regulations and these regulations are put into place to protect the public from outright scams. 

If you believe that you may have been scammed through being charged too much for a loan, having paid excessive loan origination fees, or have been subjected to unfair terms with your loan, then you should look to the Center for Responsible Lending and other institutions for expert guidance.  And, of course, you should talk to an attorney.  A good attorney can look over the terms of your loan and potentially sniff out where the lender is taking advantage, with your help, of course.

Another area where bad lenders have typically wronged the public is with overly aggressive debt collection, you need to learn your rights here.  Don’t assume that a lender is all powerful; they have to play by the rules too.  There are consumer protections put into place and you need to stand up if you believe you’re treated unfairly or overly aggressively.

Sometimes a lender will have prepayment penalties that are too high, yet another way that a bad lender may act.  There are lots of ways that shady lenders may try to “shaft” the public.  The best rule of thumb for fighting back is to get some expert legal advice if you think you’ve been wronged, get it wherever you can.

Don’t ever let anyone tell you that you have no recourse against a bad lender, that’s just not the case at all, and that’s part of what makes this country so great.