Originally from:
Lender Liability - 4th Edition - Hardcover
Lender Liability - 4th Edition - Electronic
State Laws - Chapter 25 - Preview Page
§ 25.01 Overview
Most states have some statutes that provide borrowers with
protections against lender misconduct. Many of these provide civil
remedies that borrowers can pursue; these include laws providing for
consumer protection and prohibiting unfair trade and business practices,
discriminatory lending practices, and usurious interest rates.
Some laws specifically exclude borrowers who obtain loans for
commercial purposes, while others put a cap on the amount that can be
recovered for a violation. For these reasons, practitioners should
research carefully the applicability of the statutes and the remedies
available before filing a claim. In some instances, it may make more
sense either to pursue the claim as a class action or to forego it
altogether.
§ 25.02 Consumer Protection Laws
Many states have laws providing some minimal lending protections
to "consumers," who are usually defined as borrowers who obtain loans
for personal or household purposes. The laws may be denominated as
consumer protection; unfair trade, business, or collection practices;
consumer financing; or some other name, but they all have the same goal
of prohibiting predatory conduct.1
The laws in some states deal specifically with unfair practices by
lenders, while other laws are broad enough to encompass lender
misconduct. For example, Maryland has a law prohibiting anticompetitive
and unfair practices by banking institutions. This law was
used by a borrower whose line of credit was terminated without adequate
notice in retaliation for doing business with a competing bank.2 In
addition, numerous states have enacted specific anti-predatory lending
statutes.3
§ 25.01 Overview
§ 25.02 Consumer Protection Laws
§ 25.03 Prohibitions Against Usury
§ 25.04 Environmental Laws
§ 25.05 Miscellaneous
A. Barry Cappello, Managing Partner, of the Santa Barbara law firm of Cappello & Noël, LLP. Mr. Cappello, who founded the firm in 1977, is recognized as one of the nation's leading trial lawyers and authorities on complex commercial litigation specializing in lender liability. He has represented both large and small businesses against most of the nation's major banks in litigation nationwide. His practice also involves class actions against lenders and other large corporations, bad faith insurance litigation and other complex business and tort litigation matters.
A fierce advocate for his clients, Mr. Cappello has been described by California Lawyer magazine as "Santa Barbara's Resident Barracuda," a reputation Cappello does not dispute. He has successfully tried jury trials with total verdicts in excess of $300 million and negotiated more than $1 billion in settlements and workouts for his clients.
Mr. Cappello has contributed numerous articles on complex business litigation, lender liability andadvanced trial techniques to business, legal, accounting and trade publications. Publications include Trial, The Daily Journal, The National Law Journal, Small Business Advisor and The Commercial Real Estate Journal. Mr. Cappello speaks to legal and business audiences around the country.
Before entering private practice, Mr. Cappello served a seven-year tenure as City Attorney of Santa Barbara. He was the chief litigator against the oil companies that caused the massive 1969 Santa Barbara Channel oil spill. The disaster and the ensuing litigation awakened the nation's conscious to the dangers to our environment and the tragic consequences if not protected. The case was settled in 1974 shortly before trial for $9.45 million, considered a huge sum at the time.
Prior to being appointed City Attorney of Santa Barbara, he was Assistant District Attorney and Chief Trial Deputy in the Santa Barbara County District Attorney's Office. Mr. Cappello also served as a Deputy Attorney General for the State of California assigned to the Special Trials and Investigations Division. Mr. Cappello prosecuted numerous murder, business crime and major felony cases.
Mr. Cappello has been listed in Best Lawyers in America since 1992 and in Who's Who in America. He was named a "Super Lawyer" in 2007 - 2009, and he was selected as one of the Top 100 Trial Attorneys in California for 2007 by the American Trial Lawyers Association.
