Personal loans are loans that are issued by a lender to a borrower with generally no limitations on the purposes that the money can be used for. These are often issued by banks, loan companies, and other financial lending institutions. In many cases, personal loans are used for purposes such as:
- Purchasing a new car
- Improving or repairing a residence
- Starting a business
- Various personal expenses
Personal loans are often subject to very individualized contracts. This is because the lender may need to set different terms for each buyer, such as amount, payment dates, and interest rate.
What Are Bad Credit Personal Loans?
Bad credit personal loans are personal loans that are issued even if the applicant has bad credit. For many other types of loans, such as mortgages, the lender may deny an application if the applicant’s credit is too bad. However, some companies specialize in making loans available for persons who might have difficulty otherwise obtaining funds.
Such loans may be associated with particular characteristics, such as high interest rates or stricter penalties for non-payment.
Legal Issues Associated with Bad Credit Personal Loans
One the main legal issues associated with bad credit personal loans is that of loan fraud. For instance, a lender may engage in fraudulent misrepresentation of loan terms, which can expose the borrower to losses or even legal violations. Similarly, a borrower might engage in fraud in an application in order to appear to qualify for a personal loan.
Another issue is that of identity theft. Some fraudsters may create fake businesses or fake web pages advertising bad credit personal loan opportunities. However, their main goal may simply be to obtain a person’s information through an application, and then use the information to access the person’s accounts.
Should I Hire a Lawyer for Help with Bad Credit Personal Loans?
Bad credit personal loans can often help a person obtain funds in cases where they might not normally be able to. However, they can sometimes be associated with specific legal claims or issues. You may wish to hire a credit lawyer in your area if you need assistance with any type of loan dispute or agreement. Your attorney can help oversee your claim and can file a case with the courts if needed.