While often associated with consumer loans, predatory lending practices can also occur in the commercial lending arena, targeting businesses with unfair, deceptive, or abusive loan terms. Lender Liability Law Center is dedicated to protecting businesses from such exploitative practices, focusing on commercial disputes. These practices can trap businesses in unsustainable debt cycles and threaten their survival.
Identifying Predatory Commercial Lending
Predatory commercial lending involves tactics designed to take advantage of a business’s financial vulnerability or lack of sophistication in complex financial matters. Unlike legitimate lending, which aims for a mutually beneficial relationship, predatory lending prioritizes the lender’s profit through unfair means.
Common Predatory Tactics in Commercial Lending:
Predatory tactics vary but often include imposing unfair financial terms such as excessive or hidden fees, unjustly high interest rates, and onerous prepayment penalties. Lenders might also engage in deceptive practices like “loan flipping” (refinancing to generate fees with no borrower benefit), using confusing or misleading loan documents, or employing coercive sales tactics. Other predatory behaviors involve aggressive collection methods and structuring asset-based loans with terms designed to lead to default and asset seizure.
Fighting Back Against Predatory Lenders
If your business has been subjected to what you believe are predatory lending practices in a commercial loan, it’s important to know that you may have legal recourse. Lender Liability Law Center can help you evaluate your situation and fight back.
How We Can Help Your Business:
Our firm helps by reviewing loan agreements for predatory terms and investigating lender conduct. If necessary, we pursue litigation to void loans, recover payments, and obtain compensation for harm to your business.
Don’t let predatory lending practices jeopardize your business. Contact Lender Liability Law Center for a confidential consultation to discuss your commercial loan concerns and learn how we can assist you.