Most Illinois residents at some point have probably taken out a loan from a bank or other financial company.
Usually, these firms are above board in that the terms of the loan are clear, and a borrower has an opportunity to review and understand them. These loans help people afford their homes, cars and other things that make life fulfilling. Many aspiring owners need loans to get their idea off the ground.
Unfortunately, there are many lending firms that take advantage of people through what is commonly referred to as predatory lending.
These firms are good at tricking or pressuring customers into signing loans that are not good investments for the customer and that the customer will likely be unable to repay.
Often, the way these firms do business violates federal or state law.
The laws require lenders to be up front and honest when offering a loan. There are a number of specific disclosure requirements and other rules in place to make sure lenders are only offering loans that are clear and fundamentally fair.
Customers in the Godfrey, Alton and surrounding communities should be on the lookout for predatory lenders, but they can be hard to spot before a transaction. Customers may have to rely on legal remedies to recover their losses after being fooled by a predatory lender.
Even established lenders can makes mistakes for which they should pay
Banks and other financial companies also have to make sure they follow a maze of other lending laws. Otherwise, a customer may be able to get compensation and other relief.
One example involves how banks sell a borrower’s collateral if the bank has to call the loan due.
To give one specific example, a bank cannot just sell the collateral for a dirt cheap price, frequently to an affiliated company, and then go after the borrower for the remaining balance on the loan.
They must sell the collateral in a way that will likely command a reasonable price, such as at a public auction. If a lending institution fails to do this, a borrower may be able to get excused from repaying part of their loan.
Customer lending cases can be complicated, and banks often have plenty of legal resources with which to defend themselves. An Illinois resident who feels they have been a victim of improper lending will want to evaluate their options carefully.