What is Lender Liability? – By A. Barry Cappello
Lender liability, which first gained prominence in the mid-1980s, has gained acceptance as a substantive body of law. Briefly, lender liability law says lenders must treat their borrowers fairly, and when they don't, they can be subject to borrower litigation under a variety of legal claims. The evolution of lender liability has resulted in most cases now involving breach of contract and/or fraud claims.