Bank Loan Predatory Practices

Summary

Predatory lending involves high fees, interest rates, and misleading terms. Lenders must provide clear terms. Coercion can indicate predatory practices. Consult an attorney or New Jerseys Division of Consumer Affairs for guidance. Credit card companies must adhere to cardholder agreements; deviations may breach contracts. Review documents and seek legal advice if necessary.

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A bank signed my parents up for a $70k loan 10 years ago. They did this with my Mom and not my Dad. He was *. Now, 10 years later, they were only paying off interest. So, nothing came off the principle and they wanted it all. So, they talked my 82 year old Mom into a restructure where my parents are paying *+ and only $* come off the principle. So, they started the interest over again. The bank made it a 40 year restructure. My Dad is *. Legal? Predatory?
I'm sorry to hear about your parents' situation. To help you better, can you clarify if your parents were provided with all necessary and clear information regarding the terms of the loan and the restructure? This can affect whether the actions might be considered predatory or not.
My Dad seemed to know. He was * when they made the loan. so I don't know if he understood. My Mom, now *, was pressured into it as they gave her no other options.
I'm sorry to hear about your parents' situation. In New Jersey, certain practices may be considered predatory lending. Here are some key points:
- Predatory lending often involves high fees, high-interest rates, and misleading terms.
- Lenders must provide clear and understandable terms.
- Coercion or pressure tactics can be a sign of predatory lending.
To determine if this is predatory lending, you may need to consult an attorney or contact New Jersey's Division of Consumer Affairs.
Do you have any documentation of the loan terms and communications with the bank?
Thank you. ANother question. If a credit card company closes an account for missing payments a month or * earlier than they said they would in a paper letter, legal?
I understand your concern. Regarding your question about the credit card company closing an account earlier than stated:
- Credit card companies must follow the terms outlined in the cardholder agreement.
- If they deviated from their written notice, it might be a breach of contract.
Do you have a copy of the letter and the cardholder agreement?
Yes.
I'm glad to hear you have documentation. Here’s what you might consider:
- **Review the Letter and Agreement:** Compare the closure date stated in the letter with the terms in the cardholder agreement.
- **Breach of Contract:** If there's a discrepancy, it could be a breach of contract.
For further assistance, you might want to consult an attorney or contact the New Jersey Division of Consumer Affairs.
~New Jersey Division of Consumer Affairs
Phone: (*) *-*
Website: www.njconsumeraffairs.gov

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