Lenders object to proposed consumer rights laws

July 17, 1998
Home equity lenders are bracing for a government report expected to tell the U.S. Congress how to crack down on unfair lending practices.
     The most controversial option under review would give consumers the right to sue lenders under federal law for unfair and deceptive practices, an easier legal test than suing for fraud, according to industry lobbyists and consumer activists.
     Banks, finance companies and other lenders say that would lead to an explosion of unnecessary lawsuits over perceived lending problems.
"It's a trial lawyers' dream," said Wright H. Andrews Jr., a prominent Washington lobbyist hired by National Home Equity Mortgage Association.