There is one active lawsuit against Figure Lending, LLC, filed in the United States District Court for the Northern District of Georgia in March 2023. The case, Ward v. Figure Lending, LLC (Case No. 1:2023cv00516), is a consumer protection lawsuit alleging that Figure Lending engaged in deceptive practices and violated the Truth in Lending Act (TILA) by failing to disclose the true cost of its loans to borrowers.
The lawsuit specifically alleges that Figure Lending:
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Failed to disclose the variable interest rates of its loans and the potential for borrowers to face high monthly payments and foreclosure.
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Misrepresented the amount of equity that borrowers could access through its loans.
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Engaged in bait-and-switch tactics by advertising low introductory interest rates that were not available to most borrowers.
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Charged excessive fees, including origination fees, appraisal fees, and closing costs, that added thousands of dollars to the cost of the loans.
The lawsuit is seeking damages for borrowers who were harmed by Figure Lending’s practices, as well as injunctive relief to prevent the company from continuing its allegedly unlawful conduct.
In addition to the active lawsuit, there have been other reports of consumer complaints against Figure Lending. For example, the Better Business Bureau (BBB) has received over 100 complaints about the company, with many of the complaints alleging similar deceptive practices as those cited in the lawsuit.
It is important to note that these allegations have not been proven in court, and Figure Lending has denied any wrongdoing. The company has stated that its loans are compliant with all applicable laws and regulations.
However, the lawsuit and the BBB complaints raise serious concerns about Figure Lending’s business practices. Borrowers who are considering taking out a loan from Figure Lending should carefully review the terms of the loan and understand the risks involved. They should also consult with an attorney if they have any questions or concerns.
