Pennsylvania Predatory Lending Attorneys

Any act by a company that deceives a person who is seeking a loan can be a form of predatory lending. Predatory lending is most common in the real estate industry, although can occur for almost any type of loan, especially those with high limits.

Predatory lending can include the following:

• When a company creates a false value on a home or property in order to sell them at very high prices or over their actual price to increase profit and reduce losses. Lenders feel obligated to buy the property or home at this price because it was appraised at that value.
• When a company encourages potential borrowers to falsify information on their loan application. By providing false information, such as fake or inflated income, a borrower receives a loan for a very high amount of money which they can essentially never pay back.
• When a company charges high fees for services not performed or charging rates that were never previously disclosed to the borrower.
• When a company raises the percentage rate of the loan after promising a lower rate.
• When a company encourages a borrower to accept an uncommon type of loan such as an interest only loan (subprime) or a balloon loan that ultimately results in default and foreclosure.

Predatory lending is not limited to real estate, but is also common with automobile loans. Car dealerships promise low rates, but the borrower ultimately signs a contract that does not cover this low rate and are then locked into a contract and loan they cannot pay for. Car dealerships may also choose not to disclose additional fees that are tacked onto the loan total leading a borrower to believe they are applying for a loan for an amount less than the actual amount.

If you suspect you have been the victim of predatory lending, please call the Pennsylvania predatory lending lawyers at Anapol Schwartz for your free consultation today.

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