Can I File a Lawsuit Against a Bank?

Did your bank engage in predatory lending schemes against you and your family? Were unlawful changes made to interest rates? If so, you may be eligible to file a personal injury lawsuit against the bank.

Before filing a lawsuit against a bank, though, there are a few remedies some people try first. Many people file complaints with the Federal Trade Commission, the Federal Deposit Insurance Corporation, or their local attorney general.

If these methods do not work, a lawsuit might be appropriate. To learn more about filing a lawsuit against a bank, speak with a local injury attorney. Complete the free form on this page to connect right away.

Predatory Lending Lawsuits Against Banks

Suing a bank is not always easy. Banks typically have large legal defense teams, and the elements required to prove a claim may be complex. Bank lawsuits, however, may offer real justice against rogue banks.

A good example of a successful lawsuit against a bank occurred recently in California, where the state sued Countrywide Financial Corporation for the bank’s use of predatory lending practices.

The lawsuit was eventually settled for $6.5 million, most of which was put in a fund to support foreclosed homeowners. Tactics used by Countrywide that were alleged to be illegal included:

  • Teaser rates. Lenders trapped consumers by offering low interest rates but failed to mention that these rates would skyrocket a few months into the payment period.
  • Troubling incentives. The bank paid higher commissions to lenders who persuaded consumers to take loans with higher interest rates than their credit scores warranted.
  • Relaxed standards. Countrywide frequently offered mortgages to people who could not afford a home loan.

So, these types of tactics have led to a healthy personal injury settlement for people injured by such predatory lending practices.

Other Indicators of Predatory Lending

Consumers must be cautious when dealing with lenders, even if they work for a trusted bank. Potential grounds for a lawsuit against a bank may also include:

  • Preying on the elderly. Some unscrupulous lenders may convince senior citizens to take loans with exorbitant interest rates.
  • Overuse of subprime loans. Many people who sign up for subprime loans with high interest rates actually qualify for regular loans with more reasonable rates.
  • Excessive fees. Regular loans typically have fees below one percent of the total loan amount. Fees that are five to ten percent of the total loan may be a sign of predatory lending.

Victims of predatory lending may be able to file a lawsuit against a bank. To learn more about your claim, contact a local injury attorney today.

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