Do consumer laws protect against predatory lending?

Yes, consumer laws do protect against predatory lending. In Washington, the Consumer Loan Act protects consumers from unfair, abusive, and deceptive practices. This law applies to all lenders that are involved in loans to individuals with a term of one year or more. It also applies to borrowers of credit card debt. Under the Consumer Loan Act, it is illegal for lenders to take advantage of a borrower’s ignorance, lack of understanding, or desperation. Lenders are prohibited from making false or misleading statements about loan terms and conditions or the borrower’s creditworthiness. They are also prohibited from taking unreasonable or excessive collateral or interest rates, or including terms in the contract that are unclear or unfair. Another important consumer law in Washington is the Mortgage Loan Originator Licensing Act. This law requires mortgage loan originators to be licensed and overseen by the Department of Financial Institutions. It also sets restrictions on origination fees, loan terms, and interest, and it requires lenders to disclose all interest, fees, and costs associated with the loan. By outlawing predatory practices and providing oversight to lenders, Washington’s consumer laws protect consumers from unfair and abusive lending practices.

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Do consumer laws protect against predatory lending?

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