What Is Predatory Lending?

We help you fight predatory lending practices

Predatory lending as it affects Missourians requires law firms that are familiar with fighting predatory lending practices. If you are considering a predatory lending lawsuit, it helps first to understand the circumstances that often lead to predatory lending litigation. For example, if you are in a loan agreement that is challenging, it may be because the lender took advantage of you by one or several of the following tactics:

• A debt collector pressured you. When a debt collector was so aggressive in retrieving money from you, he or she may have led you into getting a home equity loan to pay off those debts.
• You were convinced to use home equity to make payments on credit cards or medical bills. This is when you refinance a secured debt (your mortgage) to cover unsecured debt. Unfortunately, this often leads to home foreclosures.
• Refinancing repeatedly with the same lender. When a lender offers another deal, it may be because they can make even more money off your account. This is the purest definition of a predatory lender.
• Refinancing with higher interest loans. For example, in exchange for a check to the homeowner for a few thousand dollars based on equity, the lender raises the interest rate on the entire mortgage.
• Use of door-to-door or phone solicitations. This suggests you were targeted as vulnerable to profitable lending pitches for loans that would invariably be more expensive than what you could find elsewhere.
• No three-day cancellation was offered. Federal laws require that you be able to cancel a mortgage loan within three days of signing papers for any reason. If the lender does not offer this, that lender is in violation of the law.
• Refinancing a loan with the existing lender at higher rates or longer time frames. If you are trying to work with an existing lender, ask only for lower rates that would involve lower monthly payments. If you refinance the loan altogether, some lenders may add prepayment penalties, closing costs or payment terms such as additional years on the loan that ultimately increase your costs.
• Lenders and mortgage brokers who rush the process. In the many pages of paperwork and dense legal copy, there is the opportunity for the lender to impose hidden fees, unfair loan terms, and other surprise costs. You need time to call in a third party such as a finance counselor or attorney who can look for such scams.

Serving predatory lending clients in Missouri, Arkansas, Kansas, Oklahoma and nationally

The Hershewe Law Firm is respected by clients, peers, and adversaries as aggressive litigators and hard-nosed negotiators. We are known for our legal skills and record of integrity, compassion, community service, and the personal attention we provide every client we represent.

The Hershewe Law Firm has the skill and experience to fight the predatory lenders causing you and loved ones distress. Call 877-382-9734 or contact us online today for a free consultation about your case.