What does Lender Liability mean? Read on to discover the definition & meaning of the term Lender Liability - to help you better understand the language used in insurance policies.
Liability caused by the wrongful acts of a lending institution. Lender liability claims most frequently arise when a debtor challenges the validity of a loan agreement in a counterclaim against a financial institution after the institution has filed a collection action. Such claims typically allege: misrepresentation of repayment terms, fraud, economic duress, and withholding of promised credit by the lender.
We hope the you have a better understanding of the meaning of Lender Liability.