Advocacy to stop predatory loans, including payday loans, vehicle title loans, and other short-term high-interest debt, continues with NHC member Habitat for Humanity International’s new advocacy video describing why the organization is for ending predatory lending and supports the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act, which would restrain predatory lending practices and promote financial stability.
Predatory loans are often marketed to low-income households and, due to the cycle of debt they create, prevent many potential homeowners from qualifying for Habitat’s affordable housing programs. The SAFE Lending Act aims to curtail payday lending through three key provisions: ensuring consumers’ bank accounts cannot be emptied before consumers have a chance to assert their rights; increasing transparency and avoiding hidden fees; and banning lead generators and anonymous payday lending practices. Habitat’s video features leaders from its affiliates in Charlotte, Colorado, Georgia and Louisiana explaining how predatory loans create negative implications for low-income households who may otherwise qualify for affordable housing programs.
“Predatory lending in any form, whether online or in-person, must be addressed if we are to see individuals of all income levels reach financial stability,” said Elisabeth Gehl, associate director of federal relations at Habitat for Humanity International, in a press release. “Habitat supports regulations that are reasonable to both lenders and borrowers. Without responsible regulation, the debt trap that payday loans, car title loans and other predatory lending practices create will continue to prevent lower-income people from becoming first-time homebuyers and impinge on lower-income individuals’ ability to pay their mortgage, rent or other critical expenses.”
You can learn more about Habitat’s efforts to curb predatory lending in its advocacy video here.