While lenders have a legitimate interest in protecting their investments, their actions must remain within legal and contractual boundaries. When a lender oversteps these bounds and improperly interferes with a borrower’s business operations, contractual relationships, or handling of collateral (outside of real estate foreclosure), it can constitute wrongful interference. Lender Liability Law Center advocates for businesses harmed by such lender misconduct.
Understanding Wrongful Interference
Wrongful interference by a lender, also known as tortious interference, occurs when a lender’s unjustified actions disrupt a borrower’s business activities or relationships with third parties, leading to economic harm.
Forms of Wrongful Interference:
Wrongful interference can take several forms, including a lender exerting excessive control over business operations without contractual right, or improperly interfering with existing contracts or prospective economic advantages. It can also involve the improper handling or seizure of non-real estate collateral (like equipment or inventory) in a manner that harms the business or violates agreements, or making defamatory statements that damage the borrower’s reputation.
Your Rights When Lenders Overstep
Borrowers have the right to operate their businesses free from undue and unlawful interference by their lenders. If a lender’s actions have crossed the line and caused tangible harm to your business, you may have grounds for a legal claim.
How We Assist Businesses:
We assist by evaluating the lender’s conduct against loan agreements and law, assessing the economic damages to your business (including lost profits and goodwill), and engaging with lenders for dispute resolution such as cessation of interference or compensation. Should negotiations fail, our litigators are ready to protect your interests in court.
If your lender’s actions feel more like control than partnership, and your business is suffering as a result, contact Lender Liability Law Center. We focus on commercial lending disputes and can help you understand your rights and options.