Internet Payday Loan Scheme Lawsuits

Fighting Back Against Predatory Lenders

Unexpected expenses are inevitable. Sadly, many U.S. residents do not have the funds to cover them. That’s where the payday loan company comes in, seemingly saving the day. But the truth is, many payday loans are predatory and trap people into a compound interest nightmare. If you have ever taken one, you likely know this all too well.

Something must be done about the internet payday loan industry, and while federal and state legislators are working to better regulate it, we at Cunningham Bounds recognize that many consumers stuck in these loan agreements need help now. That’s why our acclaimed trial lawyers are proud to represent consumers in litigation against predatory lenders. If you or a loved one has fallen prey to a predatory lender, reach out to our lawyers to learn about your legal rights.

To find out if you qualify for a payday loan scheme lawsuit, call our Alabama trial attorneys at (251) 299-0101 today. Your consultation is free! Accepting cases across the nation.

Suing for Predatory Lending

Many people know that lenders can take legal action against borrowers who fail to make their loan payments, even going so far as garnishing their wages. This is a two-way street, however. When lenders engage in predatory lending practices and cause borrowers to suffer losses, or “damages,” as a result, those borrowers have every right to sue.

To win their lawsuit, a borrower must provide evidence that the lender engaged in predatory lending practices. Common examples of predatory lending include:

• High initial fees
• High interest rates
• Extremely low payments
• Prepayment penalties

Our attorneys at Cunningham Bounds will go over your payday loan contract to identify any signs of predatory practices.

Legislators and Regulators Take Aim at the Payday Loan Industry

In the interest of protecting vulnerable U.S. residents, legislators and regulators have made attempts to regulate the loan industry.

Federal Protections Against Predatory Lending

At the federal level, Congress passed the Truth in Lending Act (TILA) to protect borrowers from deceptive, abusive, and otherwise predatory lending practices. TILA requires lenders to disclose, in clear terms, the true cost of a loan, which means they must specifically state potential finance charges and the annual percentage rate (APR).

After the 2008 financial crisis, the federal government also enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act, which established the Consumer Financial Protection Bureau (CFPB). Under this act, the CFPB was given the authority to bring enforcement actions against lenders over predatory practices that interfere with a borrower’s ability to fully understand loan conditions. It further prohibited lenders from taking advantage of the average borrower’s lack of industry knowledge.

State Protections

State legislators have passed the small loan acts to protect borrowers at the state level. The act requires lenders to have accurate accounts, records, and licenses. Moreover, it prohibits lenders from using deceptive practices to attract borrowers. However several internet based lenders have employed schemes to attempt to circumvent state regulations and prey on vulnerable borrowers.

As you can see, payday lenders are engaging in business practices considered illegal at both the state and federal levels. This means you likely have the right to hold them accountable for taking advantage of you—even if you have already been paid the loan and are in the middle of repayment.

Hold Loan Sharks Accountable for Payday Loan Schemes

At Cunningham Bounds, our attorney team has decades of combined legal experience pertaining to fraud and deceptive financial practices. We are committed to helping borrowers across the nation get back on their feet after falling prey to payday loan schemes. We vow to stand by your side throughout every stage of litigation, as we truly care about helping you come out on top.

If you have been the victim of a payday loan scheme, you have rights. Contact our trial lawyers online or at (251) 299-0101 for a free consultation. Our firm is accepting cases across the nation.