Sue the Lender If you can prove that your lender violated the Truth in Lending Act, you may be able to file a lawsuit. Suing predatory lenders isn’t easy but you can collect monetary damages if you win. Keep in mind that while the Truth in Lending Act is federal, your state laws also come into play.

How do I report a predatory lender?

Report Abusive Lenders Report your experience to the Federal Trade Commission. It watches out for predatory lending scams and frauds. Call toll-free 1-877-FTC-HELP (382-4357), Write to Federal Trade Commission, CRC-240, Washington, D.C. 20580.

What are the 2 primary fair lending laws?

The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.

What should you do if you are a victim of predatory lending?

First of all, report the lender who sold you the predatory loan. File a complaint with the CFPB and with your state’s banking office, which you can find through the CFPB site. If the lender deliberately lied to or misled you about a loan, you can report it to the Federal Trade Commission for fraud as well.

How do you identify predatory lending?

The first step to detect and avoid predatory lending is identifying red flags that may arise while trying to buy a house.

1. High interest rates.
2. Excessive or hidden fees.
3. Prepayment penalties.
4. Balloon payments.
5. Loan flipping.
6. Negative amortization.
7. No credit check.

What does the Fair Housing Act prohibit lenders from doing?

What is fair lending? Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans.