Mortgage Lending: 7.2.7.5 State Common Law Claims
In City Financial Services v. Smith,387 the court held that a home loan was unenforceable based solely upon the common law doctrine of unconscionability. City Financial Services made a $3000 loan to Ms. Smith at 22% interest plus $618 in insurance and other charges. Ms. Smith had $574 a month in disability income, was already in default with one loan with City Financial Services, and had over $6700 in other credit card debt.