Federal and state laws provide important consumer protections to restrict high-interest lending. In addition to high interest rates, predatory lending also imposes unfair or abusive loan terms on a borrower. Often, the lenders advertise on the internet and social media. If you currently have a loan with triple-digit interest, please contact us to speak with a predatory lending lawyer.
A predatory lending attorney can provide essential support for people who believe that they have been the victim of illegal or abusive lending practices. This includes situations where a lender has charged an illegally high interest rate, unfair debt collection practices, or even situations where lenders have threatened criminal prosecution if you do not pay back a loan. Obtaining the help of a knowledgeable consumer protection attorney could result in a more structured payment plan, the full discharge of an illegal debt, or even a lender facing an investigation from state or federal agencies.
The payday loan industry operates on a strict plan of charging astronomical interest rates in exchange for a short-term outlay of cash. With many people seeking this option as a way to cover their bills, it is not surprising that some of them might sign a loan document without fully understanding the terms of the agreement.
The simple fact is that payday lenders are free from many of the regulations that impact banks and other, more stable financial institutions. Companies may charge interest rates that range from $10 to $30 of every $100 that a person borrows. This amounts to an APR in excess of 400 percent. It is no surprise that many borrowers struggle to repay these loans within the required time. Other potential problems that may affect the victims of predatory loans include:
Consulting with a predatory lending attorney could help you evaluate your loan agreements and address your concerns with these harsh contracts.
Both state and federal laws provide potential paths forward for people who have disputes with payday lenders and other aggressive financiers. The federal Consumer Financial Protection Bureau (CFPB) has the authority to investigate the actions of these lenders and seek out remedies for borrowers through either federal district courts or administrative proceedings. In addition, a predatory lending lawyer is prepared to take the lead in seeking remedies at the federal level for people who have endured financial abuse.
Various state laws also prohibit these actions at the local level. This could include setting limits on the interest rates that payday lending companies may charge or if they can hold checks as a form of collateral. An attorney could provide assistance to determine if a violation of state law has occurred that may entitle you to compensation.
Payday lenders and other organizations that offer high-interest loans count on the difficult situations of clients to make their profits. In exchange for a quick payment of cash, they can offer loans at exorbitant interest rates and use unethical collection methods in an attempt to recover their loans. In many cases, these techniques violate state and/or federal law.
If you believe that you have been the victim of a predatory lending scheme, an attorney may be able to help you. They can explain the laws that govern these types of loans and pursue an appropriate legal remedy at either the state or federal level. We operate on a contingency fee basis, so reach out to us today to schedule an appointment and discuss your options.
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