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. |