Liability caused by the wrongful acts of a lending institution. Lender liability
claims most frequently arise when a debtor challenges the validity of a loan
agreement in a counterclaim against a financial institution after the institution
has filed a collection action. Such claims typically allege: misrepresentation
of repayment terms, fraud, economic duress, and withholding of promised credit
by the lender.
Links for IRMI Online Subscribers Only: