What is Lender Liability?

Michael F. Richards is well versed in a wide variety of subjects in the banking and financial industry. His knowledge and experience has been used in serious trials all over the country, and he has built a reputation as an indispensable wealth of knowledge that will only bolster your case and add credibility to your client.

One of his areas of expertise is lender liability. Since the 1980s, lender liability has gained prominence in courts, and now, it accounts for a large number court cases all across America. Despite its ubiquity, many people are unaware of what exactly lender liability is. Simply put, lender liability law states that lenders must treat their borrowers fairly. It seems simple enough; unfortunately, there have been plenty of lenders who try to take advantage of their borrowers, and chances are these underhanded practices will continue in the future.

At first, most cases involved the lender suing the barrower for failure to pay and other breaches of loan agreements. Once lender liability became law, the tables turned. Borrowers found themselves with much better protection against shady lending practices, and became just as likely to sue lenders for breaches on their part.

One of the most common times lender liability is brought into the court is when a lender fraudulently induces a loan agreement or if there wasn’t mutual consent. In these cases, the lender can most certainly be sued.