black…MYstory

I don’t know if this is true where you live but, where I live, I see a huge number of “check cashing” or “payday loan” places. On the way to my son’s school, we pass three of these place in less than one mile. I’ve seen them in both working-class and middle-class neighborhoods and this lets me know that, financially, things are not all good here.

Another aspect of these lenders are the exorbitant fees and interest they charge on these short-term loans. This only aids people in getting further behind financially.

So, it was a pleasant surprise to see a U.S. Senator actually confront an issue that disproportionately affects black and Hispanic borrowers. Sen. Chris Dodd has announced that he will be working to pressure lenders and financial services companies to provide better access to capital for low-income families. But, chairman of the Senate committee on banking, housing, and urban affairs, he will also be holding hearings addressing predatory lenders, including payday loans and mortgage lenders.

Dodd stated that if these lenders don’t respond to pressure to change their practices then, he will seek to have the law changed to make them comply.

Foreclosure rates among subprime mortgage holders are huge (approx 20%) so, to continue prey on those who can least afford it is unconscionable. Therefore, I hope that we soon see some substantive changes come from this Congress in regards to predatory lending.

Popularity: 5% [?]