WASHINGTON,
D.C. -- U.S. Representative Jan Schakowsky (D-IL) responded to a report
in the American Banker on recent efforts by the financial industry
to develop a battle plan to oppose local, state, and federal efforts to
protect consumers from predatory lenders. Schakowsky plans to reintroduce
her Anti-Predatory Lending Act this Congress.
Below
is Schakowsky's response in the American Banker, published on 1/31/01.
American
Banker reported that mortgage bankers and national lenders met quietly
in Dallas to hit back on lending abuse laws. The purpose of the meeting
was to develop a unified battle plan.
The
industry’s claim that efforts supported by advocates, activists, and consumer
organizations to stop predatory lenders would actually harm consumers is
preposterous. I agree that subprime lenders play a role in the marketplace
and that in order for some consumers to gain access to capital, they must
be prepared to pay more. But no one should be suckered into losing
his or her home. Subprime is not synonymous with predatory. The industry
should stop blurring the lines and lay down their weapons.
It
is hypocritical of industry leaders to launch a public relations campaign
against predatory lenders and then rally their troops against any and all
legitimate local, state, and federal initiatives that will give consumers
real protections.
Without
a serious plan that will drive predatory lenders out of business, they
will continue to thrive and rake in the profits for themselves and the
large financial institutions that own them. I plan to reintroduce
my anti predatory lending bill this Congress that will do just that - kick
these robbers out of our neighborhoods. My bill attacks the high
interest rates and fees, single premium insurance products, loan flipping
and churning, unilateral call provisions, and loans made without regard
to the borrower’s ability to pay. It contains provisions already
adopted by the Federal Reserve.
It
sounds like the industry’s interests were well represented in that meeting.
What about the interests of the homeowners whose houses were stolen by
predatory lenders or the consumers who pay credit card high interest rates
for home improvement loans? Were their interests represented? Clearly not. |