Recent Answers to Loan Agreement Law Questions
Can a lender change the terms of a loan agreement without my consent?
Financial Services
Loan Agreement
Ohio
I recently entered into a loan agreement with a lender to borrow funds for a business expansion project. However, I have received a notice from the lender stating that they intend to change certain terms of the loan agreement, such as increasing the interest rate and extending the repayment period, without seeking my consent. I am concerned about the legality of such changes and the impact they may have on my business.
Gary S.
Generally no, a lender cannot unilaterally change the terms of a loan agreement without the borrower's consent. Loan agreements are binding contracts, and any modification to the terms (such as interest rate, repayment schedule, or collateral requirements) typically requires both parties to agree to the change. However, depending on the agreement's terms and the type of loan, there are some nuanced exceptions. Some loan agreements permit changes without borrower consent, such as variable rate provisions, default provisions (allowing changes if borrower is in default), or loan servicing clauses (ex. payment instructions can usually be modified unilaterally). However, in each case, these rights to modify the terms must be clearly stated in the loan agreement, and if the agreement is silent, the lender cannot change the terms without the consent of the borrower. The information provided in this response is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by this communication. For advice specific to your situation, please seek legal counsel.
Can a lender increase the interest rate on a loan after the loan agreement has been signed?
Business Contracts
Loan Agreement
Florida
I recently signed a loan agreement with a lender for a personal loan. The agreement clearly states the interest rate that I will be charged for the duration of the loan. However, I have recently received a notification from the lender stating that they are increasing the interest rate due to changes in the market. I am confused and concerned about whether this is legal, as I believe the terms of the loan agreement should be binding. I would like to know if the lender has the right to increase the interest rate after the loan agreement has been signed.
Diane D.
It depends on your policy. Interest rates for personal loans are either fixed or variable. The fixed rate remains constant throughout the loan. However, variable rates may be increased or decreased, based on market changes.
I need help getting my name off a car
Auto
Loan Agreement
Pennsylvania
My now ex and I went to get a car 7/5. He left with it 7/10. I don't know where he is or the car last I heard he was locked up in florida.
Samuel R.
Is your name on the loan or title?
I signed a Promissory Note for $11,200 months ago and have not received the funds, what can I do?
Government Contracts
Loan Agreement
Wisconsin
I was approved for and signed Promissory Note with Creditbench/First Home Bank for an $11,200 PPP loan in May, 2021 & am Currently listed with the SBA as owing said $11,200 stating 'Disbursed Current', but I have Not been funded months later
Donya G.
My advise is to continue to contact the bank and ask about the funds; try to speak with someone with authority like a manager or supervisor. From my personal dealings with PPP loans and the response time to get an answer, I understand there can be delays but this is a long time and they are listing the funds as disbursed so there is an issue somewhere. Also, get an email address where you can submit an inquiry regarding the funds. If you need additional help, you can reach out to me on the platform. All the best, Donya Gordon
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