CUANJ urges strong action against predatory lending

HIGHTSTOWN, N.J. - The Credit Union Affiliates of New Jersey has commended New Jersey Representative Marge Roukema's (R) initiative in opposing predatory lending and urged that action against predatory lenders be extended to include other businesses "that may be preying on consumers." The chairwoman of the House SubCommittee on Financial Institutions recently asked financial regulators to examine predatory lending and review measures being used to rein in the practice. "Predatory lending negatively impacts many Americans, including a large number of minorities, low income earners and the elderly," wrote CUANJ President/CEO Russell Clark. CUANJ and its affiliate credit unions want to see the damaging practice completely stopped, he said. In his letter, Clark addressed how predatory lenders encourage borrowers to default on loans when refinancing and fail to disclose the risks involved with the loans. Such lenders, said Clark, often charge excessive rates and fees, while ignoring the borrower's ability to repay the loan. The recommended review should "go beyond what may be predatory practices in the areas of mortgage and other traditional loans to examine predatory practices of check cashers and other fringe financial institutions that may be preying on consumers," Clark wrote.