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Houston Consumer Credit Lawyer – Lender Liability

The relationship between borrowers and lenders is fundamental to business planning and consumer law in the Houston area. To ensure that these relationships remain amicable and do not precipitate adverse legal actions, it is critical for all involved parties to understand the concept of lender liability.

Lender Liability Issues in Pearland, Katy and Sugar Land

Under Texas law, lender liability is directly related to the rights and responsibilities of lenders and borrowers. It is important to remember that lender liability is not an action or activity. In other words, a creditor cannot “commit a lender liability.”

Rather, liability is a condition that may arise when a lender engages in certain prohibited modes of conduct. According to the American Bar Association (ABA), such liability “arises from either a breach of a common law (or judicially created) obligation…or a breach of a federal or state statutory obligation.”

Frameworks and statutes governing lenders’ obligations in Texas include:

  • Applicable Texas state statutes
  • Applicable Securities and Exchange Commission and Texas state securities regulations
  • The federal Fair Labor Standards Act (FLSA)
  • The federal Racketeer Influenced and Corrupt Organization Act (RICO)
  • The federal Dodd-Frank Wall Street Reform and Consumer Protection Act

Broadly speaking, lender liability may arise when lenders:

  • Exercise “excessive control” over a borrower’s affairs
  • Engage in what the ABA calls “fraudulent or inequitable conduct”
  • Engage in conduct that directly contravenes existing statutes or regulations

Borrowers facing any of these situations should consult a seasoned Houston credit attorney.

Work with a Trusted Houston Business Lawyer

At The Law Office of Henry A. Jakob, PLLC, we believe that the lender-borrower relationship is among the most important and sacred aspects of commerce. With  corporate law experience in these matters, we also know that these relationships can lead to disagreements, acrimony and commercial litigation in the absence of clear expectations and understanding on all sides.

While our prior experience in senior accounting, management consulting and auditing positions ensures that we are intimately familiar with lenders’ needs and concerns, we also believe that it is critical for commercial lenders to uphold their clients’ rights and adhere to well-defined business law responsibilities. As such, we are committed to investigating lender liability claims and providing aggressive, attentive representation to affected consumers.

Whether you are a small Missouri City business owner interested in pursuing a lender liability claim against a financing partner or a Stafford homeowner who wishes to learn more about home equity lenders’ responsibilities, we are happy to review your case and provide the appropriate assistance.

Contact Us Today

If you would like to learn more about what our Houston credit lawyer can do for you in the areas of consumer law, credit law and real estate law, including assistance with lender liability and home equity loan matters in the Houston and Galveston areas, please contact us at 832.879.2244 or fill out the online contact form to schedule a no-obligation consultation.

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