New Mexico Predatory Lender Lawyers

If you’re dealing with an unfair loan, outrageous repayment terms, or lenders who use high-pressure tactics, you’re not alone. At Feferman, Warren & Mattison, our experienced consumer protection lawyers help clients stand up to predatory lenders. Whether you’ve been deceived into a loan you didn’t fully understand or are stuck with abusive terms that seem impossible to escape, our predatory lender lawyers can evaluate your case, protect your rights, and help you take legal action. Contact our seasoned consumer lawyers for a free consultation today.

What Is Predatory Lending?

Predatory lending refers to unfair, deceptive, or abusive loan practices that target vulnerable borrowers. These practices are often designed to trap individuals in cycles of debt or to generate profit for the lender through dishonest means rather than fair business practices. While many of these loans may appear legitimate on the surface, the underlying terms are often grossly unfair or illegal.

Predatory lenders often exploit people in financial distress or those with poor credit, limited financial education, or language barriers. These lenders may operate outside the law entirely, or they may disguise their practices in complicated contracts, fine print, or confusing legal jargon. Some of the most common characteristics of predatory loans are as follows:

• Excessive interest rates far beyond market standards
• Hidden fees buried deep within loan documents
• Balloon payments or large lump sums due at the end of a loan term
• Aggressive or harassing debt collection tactics
• Deceptive or vague language that misrepresents the true cost of the loan
• Loan flipping, or encouraging borrowers to refinance repeatedly, adding new fees each time

Even though laws exist to regulate lending, many predatory lenders find ways to skirt these laws or hope that borrowers won’t know their rights. That’s why we’re here.

Common Types of Predatory Loans

Predatory lending can appear in many different forms. It’s not limited to shady payday lenders, though those are certainly common offenders. Some of the most frequent types of predatory loans we see include the following:

• Payday loans: These short-term, high-interest loans are often marketed as quick cash but come with sky-high interest rates, fees, and rollovers that trap borrowers in endless repayment cycles.
• Auto title loans: Borrowers offer their vehicle title as collateral for a high-interest loan. If a payment is missed, the lender can repossess the vehicle, even if the borrower has paid most of the loan.
• Installment loans: These may look like traditional loans, but many carry APR rates of 100% or more, with deceptive repayment terms and automatic withdrawals that make it hard for borrowers to keep up.
• Mortgage loans: In some cases, lenders target homeowners with low credit or income by offering risky home refinancing options or reverse mortgages with unfair terms.
• Buy Here, Pay Here car financing: Often found at used car dealerships, these financing arrangements can come with exorbitant interest rates, mandatory service contracts, and repossession threats after a single missed payment.

If you’ve signed an agreement for any of the above and are now struggling under the weight of unreasonable terms, you may have been targeted by a predatory lender.

How to Recognize a Predatory Loan

Many borrowers don’t realize they’ve been victimized until it’s too late. The truth is, predatory loans are designed to look legitimate until you start falling behind, and that’s usually when the abusive tactics start. Some of the red flags that could indicate a predatory loan are as follows:

• Promises of “no credit check” or “guaranteed approval”
• Pressure to sign loan documents quickly, without time to review
• A lender who discourages you from reading the fine print
• Unexpected fees or charges you weren’t told about upfront
• High prepayment penalties that discourage early payoff
• Contracts that are difficult to read or not provided in your native language

Lenders engaging in deceptive practices may also hide critical information in lengthy, jargon-filled documents. They might leave blank spaces in the contract that get filled in later, or bury harmful clauses on page 10 of a loan agreement.

Some will lie outright, such as by misrepresenting the cost of the loan, failing to explain balloon payments, or claiming that certain fees are “required by law” when they aren’t.

When you bring your loan documents to Feferman, Warren & Mattison, we’ll go through them line by line. We know what to look for, and we know how to spot violations that others miss.

Legal Actions We Take Against Predatory Lenders

You have legal rights as a borrower, and in many cases, predatory lending practices violate both state and federal consumer protection laws. In New Mexico, the Unfair Practices Act protects consumers from deceptive or unconscionable trade practices, including loan scams. Federal laws like the Truth in Lending Act (TILA) and Equal Credit Opportunity Act (ECOA) also require lenders to be transparent, fair, and non-discriminatory. If you’ve been the victim of a predatory loan, with an attorney at your side, you may have options, such as the following:

• Canceling or voiding the loan entirely if fraud or illegality can be proven
• Recovering money paid, including fees, interest, and damages
• Stopping collections and preventing repossession or foreclosure
• Suing the lender for statutory damages, emotional distress, and attorney fees
• Filing complaints with government agencies such as the Consumer Financial Protection Bureau (CFPB)

Contact Our Predatory Lender Lawyers in Albuquerque, New Mexico

If you believe you’ve been a victim of predatory lending, don’t wait. Schedule a consultation with our team at Feferman, Warren & Mattison. You don’t have to face financial exploitation alone. Let our predatory lender lawyers help you take back control.