Lender Liability

Lender liability law requires that lenders treat borrowers fairly and follow loan agreements. Loan agreements are essentially contracts, and when loan agreements are breached by a lender, acquired by fraud, or through an absence of mutual agreement, there may be grounds for a lawsuit against the lender.

Predatory lending pertains to secured loans where the lender is intentionally manipulating borrowers into situations where they will be unable to pay back the loan, allowing the lender to seize the property used as collateral.  It may also include the persuasion of borrowers to agree to abusive or unfair loan terms through the use of forceful or misleading sales tactics, or overly complicated transactions designed to confuse the borrower.

At Drew, Cooper & Anding, our lawyers have developed expertise in both federal and state banking law, and have successfully prosecuted a number of cases against nationally charted banks in lender liability cases. Noteworthy is our verdict of $1.2 million in the case of Prime v. Bank One in June 2006.