Skip to Content

lender liability

Lender liability is caused by the wrongful acts of a lending institution.

On This Page

Additional Information

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.