Lender liability is a liability that is caused by the wrongful acts of a lending institution. Many people think that these are a thing of the past, but that is not the case. Follow the link to learn more. https://www.irmi.com/term/insurance-definitions/lender-liability#:~:text=Lender%20Liability%20%E2%80%94%20liability%20caused%20by,has%20filed%20a%20collection%20action.