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Fazzio Law Offices

Can I Sue the Lender For Misleading and Mistreating Me?


Yes.  And you probably should.  This is called a Counterclaim.  There are State consumer protection laws like the Consumer Fraud Act in New Jersey (N.J.S.A. 56:8-2) and General Obligations Law 349 and 350 in New York.  These laws, in particular, prohibit false advertising, fraudulent business practices, and unfair treatment of consumers.  There are also federal statutes, particularly the Fair Debt Collection Practices Act that Congress passed to reign in banks and prevent abusive practices.  Another common Counterclaim is garden variety Fraud.  Another common Counterclaim is Breach of Contract.  This comes up a lot in the context of Modifications that went through, but which the bank didn’t follow through on.

Claims in court are usually either “Tort” or “Contract” based.  A tort is like a slight or a violation.  Someone did something to you and you were injured.  They pushed you.  They lied.  They interfered.  Contract actions are based on a promise that was broken.  All of the claims you can bring against the bank fall into one of these categories.  A lawyer can frame them for you.  But, the important point is this.  If you were lied to.  If a promise was broken.  If you were hurt unfairly.  These are the actions that can support a claim for “Breach of Contract” or “Fraudulent Misrepresentation.”