• DYE CULIK PC | Consumer Protection Division

Culik Law Defeats Motion To Dismiss Case By Predatory Lender

Culik Law Champion Your Rights

The case was filed under Massachusetts consumer protection statutes including Chapter 93A, the Consumer Credit Cost Disclosure Act (the Massachusetts version of the Truth in Lending Act), and the Predatory Home Loan Practices Act. The lawsuit alleged that the lender wrote a loan with an unconscionably high interest rate that was “doomed to foreclosure.” When the loan defaulted, the lender foreclosed. And because the homeowner had significant equity in his home, the lender took much of the equity, as well.

The lender argued that the loan was a business loan and was exempt from complying with the law. This argument was rejected, and was said by the judge to be a “hotly disputed” issue that should be decided by a jury.

Although many people are not aware of it, some smaller lenders are subject to the same restrictions against predatory lending as larger lenders. In this case, the lender operated in Essex County and had apparently made similar loans to homeowners in the area.

The case will now be scheduled for trial.

#mortgage #93a #ConsumerCreditCostDisclosureAct #TruthinLendingAct #homeowner #PredatoryHomeLoanPracticesAct #predatorylending