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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 12402
Experience:  JD, MBA
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could this be considered a predatory loan? They knew about

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could this be considered a predatory loan? They knew about not having any permits, plans or records for this building before we even started.
their appraiser said it was worth way more than it possible could have been. we were totally up front with them about everything and now they are acting all surprised when the appraiser couldn't find permits, records or anything. like I said we were there very first SBA loan and the guy who did the loan pushed everything threw as hard and fast as he could now he has worked his way up the ladder and he isn't even with them anymore. We have barley made our payments month to month but we have paid except the last five months when they told us not to. I would have given you a tip but the card I used was a rebate card my wife had and it only had fifty dollars on it and the only other card I have is threw the credit union and thy are monitoring what we are spending and I do not want them to know I'm asking questions like I said before they have lied to us and I'm sure they knew about the SBA bankruptcy debt relief
Hello again.

What you describe is not predatory lending. Predatory lending, broadly speaking, refers to a loan with unfair and/or abusive terms for the borrower. For example, charging outrageous interest rates is a kind of predatory lending. What you describe is not predatory because it has nothing to do with the terms of the loan. In your case, they gave you a loan when perhaps it would have been wiser for them to turn you down. But that's just a poor business decision (and now the credit union is paying the price in the sense that it is not being repaid). It wasn't unfair to you or abusive to give you a loan when you didn't have permits, etc. The credit union is in the business of lending money, not the business of ensuring that its customers are in compliance with codes and regulations. You, as the manager of the business, are the party responsible for codes and regulations. I don't mean to come across as harsh. Please don't take it that way. But you have to understand that a lender is not going to run a person's business for him. I'm sure the loan officer who gave you the money knows less about permits, plans and records than you do.
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