Predatory Lending

We enjoy a distinct national and statewide reputation for excellence in the area of consumer protection litigation. Such litigation includes class actions and individual cases throughout the country. Most of the cases in this section involve wrongful conduct of insurance and finance companies. Cases we are currently working on include:

• Pay Day Lending
• Title Lending
• Sub-Prime Lending
• Credit Life Insurance

Our attorneys fight to protect the rights of consumers victimized by wrongdoing. Attention to detail, complete investigation, thorough preparation and willingness to try cases are the cornerstones of our Predatory Lending practice. Strom Law Firm, L.L.C. has lawyers licensed in South Carolina, North Carolina, Georgia, Florida, the District of Columbia, and New York to assist you with your Business Litigation needs.

If you believe you have been taken advantage of through an improper loan, by either being required to pay for insurance you did not want, by being charged very high fees or by repeated refinancing of your loan, or other wrongful acts, please click here.

Pay Day Lending

As a part of our lawsuits challenging predatory lending, Strom Law Firm, LLC, along with a number of other firms in South Carolina, filed suit against pay day lenders for unconscionable loan practices where the pay day lender would loan a consumer money, knowing that the consumer would not be able to pay the loan back when it is due on payday. As a result, the consumer would have to pay the interest only, receiving a new loan. This causes a never-ending cycle of debt. In Strom Law Firm's investigation, we have seen a number of individuals who carry multiple loans from pay day lenders where the total amount owed at the end of each pay period greatly exceeds their income. You can read Mr. Strom's op-ed piece that appeared in the State newspaper here. We are currently investigating the following Pay Day Lending Companies:

• Complaint Against Advance America
• Complaint Against Check into Cash
• Complaint Against Check Advance
• Complaint Against Frontstreet
• Complaint Against A-1 Instant Check Advance
• Complaint Against Advance on Checks
• Complaint Against Carolina Pay Day
• Complaint Against Local Cash Advance III
• Complaint Against Cash-o-matic
• Complaint Against Check Loans of South Carolina
• Complaint Against Happy Pay Day, Inc.
• Complaint Against S&W Money Tree

If you believe you have been taken advantage of through an improper loan, by either being required to pay for insurance you did not want, by being charged very high fees or by repeated refinancing of your loan, or other wrongful acts, please click here.

Title Lending

As a part of our lawsuits challenging predatory lending, Strom Law Firm, LLC, along with a number of other law firms in South Carolina, filed suit against title loan companies for the unconscionable interest rates they charge. A title loan company operates like an automobile lender. The loan company takes a lien on the consumer's car title and advances money against that lien. The loan company typically only makes loans for a fraction of the value of the vehicle's value and charges rates in excess of 150%, and sometimes as high as 400% APR, even though the vehicle fully secures the loan. As a result of charging such high rates, many consumers default and have their vehicle repossessed. We are currently investigating the following Title Lending Companies:

If you or someone you know has suffered as a result of the unconscionable loan practices of a Title Lending company, please contact us.

Sub-Prime Lending

Subprime lending, also called B-paper, near-prime, or second chance lending, is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history. Subprime lending is risky for both lenders and borrowers due to the combination of high interest rates, poor credit history, and adverse financial situations usually associated with subprime applicants. A subprime loan is usually offered at a higher rate than normal loans due to the increased risk.

Subprime lending encompasses a variety of credit instruments, including subprime mortgages, subprime car loans, and subprime credit cards, among others. The most common lending problem, however, is subprime mortgages. There are many different kinds of subprime mortgages, including:

• interest-only mortgages, which allow borrowers to pay only interest for a period of time (typically 5-10 years);
• "pick a payment" loans (or "option ARMs", for which borrowers choose their monthly payment -full payment, interest only, or a minimum payment which may be lower than the payment required to reduce the balance of the loan);
• and initial fixed rate mortgages that quickly convert to variable rates. Subprime lending is highly controversial. While not all subprime loans are bad products, many of the subprime lending companies engage in predatory lending practices such as deliberately lending to borrowers who could never meet the terms of their loans, thus leading to default, seizure of collateral, and foreclosure.

For example, Strom Law Firm, LLC, along with a number of firms around the country, filed a lawsuit against Countrywide Home Loans, Inc., regarding its option arm products. As mentioned above, option arms are loan products that allow a consumer to pay different options on their home loan. Options include paying less than the interest each month. This is known as the minimum payment. When the consumer only pays the minimum payment, interest is capitalized each month. When the debt exceeds the initial loan amount by a certain percentage, the consumer's minimum payment is increased. While option arms are not necessarily bad loan products, it appears that Countrywide qualified consumers for these loans based on whether they could make the minimum payment, resulting in many consumers being unable to pay higher amounts and facing foreclosure.

If you believe you have been taken advantage of through an improper loan, by either being required to pay for insurance you did not want, by being charged very high fees or by repeated refinancing of your loan, or other wrongful acts, please click here.

Credit Life Insurance

Associates Financial Services, which also does business under several similar names including Associates, Associates First Capital, Associates First Family and others, is alleged to be exploiting customers through several wrongful practices: Associates may refinance loans unnecessarily, force-sell life insurance with its loans and sell insurance products that don't pay as promised. Associates Financial Services has locations in Columbia, Sumter, Greenville, Greenwood, Abbeville, Spartanburg, Charleston, and Easley, South Carolina. There may be other locations as well.

News agencies are reporting that the United States Department of Justice and the Federal Trade Commission suspect that Associates Financial Services charges African-Americans higher interest rates and other finance charges than it charges other customers.

Be aware that it is possible you bought insurance in connection with a loan without even being aware of it. In the past, Associates has included such insurance in loan packages even though the customer never requested to purchase such insurance.

Finally, we believe that the type of discriminatory and fraudulent practices that are alleged to be occurring at Associates may be going on at other lenders. If you believe you have been taken advantage of through an improper loan, by either being required to pay for insurance you did not want, by being charged very high fees or by repeated refinancing of your loan, or other wrongful acts, please click here.

If you believe you have been taken advantage of through an improper loan, by either being required to pay for insurance you did not want, by being charged very high fees or by repeated refinancing of your loan, or other wrongful acts, please contact us.

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