Predatory Lending
Do Not Borrow Trouble:
Protecting Our Community From Predatory Lending Practices
The HRC held a free community workshop on predatory lending practices on Tuesday, April 9, 2023 at the Hyatt Regency Hotel in Lexington. The purpose of the workshop was to discuss the depth of the problem of predatory lending in our community. Two (2) groups of panelists consisting of affordable housing activists, housing counselors, fair housing specialists, state regulators and federal enforcement agencies defined the issue in national terms while examining the issue from a local perspective. Specifically, the panelists shared their experience with predatory lending in our community and the remedies available to combat the issue of predatory lending. More Information.
Kentucky State Treasurer's Commission on Personal Savings and Investment's Public Hearing on Predatory Lending
Human Rights Commission Executive Director, William Wharton, testified at the Kentucky State Treasurer's Commission on Personal Savings and Investment's public hearing on predatory lending in Lexington, KY on June 19, 2002. The purpose of the hearing was to assist the Treasurer's Commission in studying the problems related to predatory lending practices taking place in Kentucky and strategizing on how to help lower-income families become more financially independent through existing savings programs. With the belief that raising awareness, of not only the problems, but also the options available for many disadvantaged families can play a significant role in reducing the number of families that fall victim to these bad actors of the sub-prime market.
Predatory lending occurs when a lender engages in practices that involve fraud, deception or the manipulation of a borrower through aggressive sales tactics. Generally, a borrower is duped by a scheme promising easy, immediate cash, only to find out much later there is a catch: extremely high interest rates, extraordinarily expensive administrative fees, unnecessary insurance policies or other obligations.
Often the predatory lender's intent is to tie borrowers to loans they cannot pay and ultimately foreclose on their homes. Often the victims of predatory lending are the poor, elderly and minority groups.
To print off a copy of William Wharton's testimony at the hearing, please click here. A bibliography of available resources is also available.
Kentucky State Treasurer's Commission on Personal Savings and Investment web site.