Legislative Update 09-25-02: Predatory Lending

I have heard concerns from constituents about predatory lending practices, and wanted to share the following information that can help citizens protect themselves.

According to the American Association of Retired People, AARP, there are growing numbers of aggressive, dishonest lenders who advertise their services to people in financial need. People who may have fallen behind on property taxes, or need money for medical bills, or face costly home repairs are targeted by those who want to profit through others’ trust and misfortune. Instead of offering a fair loan, these lenders use smooth-talking salespersons, high interest rates, outrageous fees, and unaffordable repayment terms. Homeowners can be tricked into taking out loans that they cannot afford to repay. Some homeowners may lose their homes to foreclosure.

The Anchorage Federation of Community Councils has shared the following information about efforts to inform Alaskans about this situation and help us all avoid being taken advantage of. I’d like to share it with you.

Some time back, a group of people came together to create the Predatory Lending Task Force. Our goal was to help combat predatory lending practices that are becoming more prevalent in Anchorage and across the state. The group encompassed representatives of the Federal Trade Commission, the State Division of Banking and Securities, the State Attorney General's Office, the Alaska Bankers Association, the Alaska Mortgage Bankers Association, AARP, the U.S. Department of Housing and Urban Development, the Better Business Bureau, the FBI, and others.

Thanks to the dedication and creativity of Barb Worley of Anchorage Neighborhood Housing Services and the task force, a two-hour Power Point and video presentation was created and is being offered to organizations, businesses, and non-profits -- free of charge.

Gather a group of clients, employees or neighbors together, invite Barb to make a presentation, and educate yourself and others about what you can do to protect yourself from the "sharks."

If you have questions, call Barb Worley at Anchorage Neighborhood Housing Services, Inc. at 907-677-8404.

I hope at least some of this information is useful to you. As always, if you have any questions, concerns, or suggestions, please get in touch with me.

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