Filing a predatory lending lawsuit against a company that has committed such predatory lending is a legitimate and logical step to take, especially when the company is an auto lender. This type of predatory lending involves an attempt to profit from your lack of ability to pay off your vehicle loan.
Predatory lending is a criminal offense in which a person commits acts or omissions of the type described as “loan sharking”. These types of conduct are illegal but are often committed in the absence of any penalties for these actions. There are few states that have enacted a law making it illegal for lenders to charge borrowers more money to refinance than they are required to by law. Because the laws on predatory lending have not been enforced, a variety of predatory lending practices have been allowed to occur, with no penalties being applied.
A predatory lending lawsuit against a car dealer who has committed predatory lending will involve the car dealer charging you a higher rate of interest on your car loan than required by the law. If the car dealer refuses to reduce the amount of interest or the length of time it takes to pay off your loan, you may be able to file a predatory lending lawsuit against the dealer, seeking compensation for all damages you have incurred in an effort to recover the full amount of your loan, including late fees, penalties, over-limit fees and any other expenses.
If you were denied financing because you had not established credit in the past, you may have been turned down, but there are some car dealerships who will approve you even though you have no credit, no job and only a modest income. Because these types of car dealerships cannot legally discriminate against borrowers based on their credit history, they have no legal obligation to accept a borrower unless they are able to demonstrate that they are capable of making payments on the car loan.
This can be accomplished by obtaining a job, establishing credit and paying off your car loans by maintaining a reasonable income. If your car dealer turns you down due to your lack of credit, you may be able to file a predatory lending lawsuit against the dealer for their violation of the Fair Credit Act and/or the FTC’s guidelines on predatory lending.
You should take legal action to stop predatory lending if the reason for turning you down is due to your inability to pay off your car loan. The fact that you cannot afford to pay off your loan now means that you are in a much weaker financial position than you were before.
If you believe that you have been victimized by predatory lending, the first thing to do is contact a private attorney experienced with predatory lending lawsuits. to discuss your case. Your attorney can explain the laws in your state and how you can go about getting compensation. If you are unable to settle with the car dealer for a reduced amount of interest on your loan, you may wish to consider filing a lawsuit against them to get back what you rightfully deserve.
Predatory lending lawsuits can be filed in state or federal court. If you are not represented by an attorney, you should consult with one.
Before pursuing a predatory lending lawsuit, it is important to understand that no matter how your dealership sold you the car loan, they are liable for the full amount of the loan and any associated costs that were not included in the sale. In many states, the only way that you can get compensation for a predatory lending lawsuit is to get a judgment against the company.
Predatory lending lawsuits are extremely serious and should be pursued immediately if you believe you were a victim of fraudulent lending. Even if your car dealership has been cooperative and made repairs and agreed to make the payment for you, it is wise to investigate your options to protect yourself. from future problems.
To learn more about predatory lending lawsuits and how they work, contact a lawyer today. Your personal injury attorney can explain the process and how you can obtain the compensation you deserve in order to recover your losses and prevent the company from exploiting you again.