Legal Question in Business Law in Florida

There is a lender (claims to be) in the Bay area in San Francisco, CA. that charged me a 12K Due Dilengence fee and turned down the loan. That is not unusual but in additional to the fee they filed a UCC against all my company assets and have blocked me from going elsewhere for a commercial loan without paying them a fee. Is this legal?

Asked on 2/13/12, 4:43 pm

Sanford M. Martin Sanford M. Martin, P.A.

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The tactic employed by the described "lender" does appear to be unusually aggressive.

It may be legally supported if you signed and agreement or otherwise agreed to such terms.

Your loan application may contain provisions which enable a lender to collect such fees.

Therefore, you must review your application process and what terms you may have accepted

as part of the process. Of course, it could be a lender which makes considerable income

by charging such fees, and you may have a basis to object or protest such fees which could

be clearly excessive.

Answered on 2/13/12, 5:07 pm

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