George Smith The Lawyer That Sues Banks

The Truth-in-Lending Act is designed to protect consumers from predatory lending practices by requiring advance disclosure of loan terms.  The idea is to require lenders to inform consumers of the costs and terms of their loan in advance of closing so they will have an opportunity to shop for better loan terms and make informed credit decsions.  The Good Faith Estimate provides an estimate of closing costs, including lender and broker-related fees, title fees, third party and government fees and the Truth-in-Lending Disclosure provides information on the cost of the loan (ie. APR).  Sometimes these documents are either not provided, are not provided within the time required, or are filled with intentionally misleading and inaccurate information.  Other disclosures are required as well depending on the type of loan involved. 

In certain situations, violation of the law entitles the borrower to cancel the transaction for up to 3 years after the closing.  This can be a pretty dramatic remedy if it is available.     

Most states and some cities around the country have also enacted laws regulating lending practices.   Fraud is also a remedy at common law that may be available depending on the particular facts and circumstances surrounding the loan transaction.  Punitive and compensatory damages may be recovered in appropriate cases as well as attorneys fees.

Each potential claim has a statute of limitations which means if the claim is not brought within the time required by law, it is forever lost no matter how good of a claim it is.  Put another way, it's a good idea to call a doctor before the patient dies. 


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