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Article: CUs Warned Of A New Type Of Emerging 'Predator'.(credit unions, predatory lending)(Brief Article)
- Article from:
- Credit Union Journal
- Article date:
- August 19, 2002
- Author:
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A new type of "predatory" loan scheme is emerging.
U.S. Rep. Maxine Waters (D-CA) told a group of credit unions gathered here that in addition to the typical services offered payday lenders and pawn shops, shady tax preparation firms also inhabit low-income neighborhoods. Instead of advising consumers to file their returns electronically and receive their refunds in a few days via direct deposit, the tax preparers steer people into taking out "refund anticipation" loans, which carry high fees.
The role that credit unions can play in countering such lenders by offering reasonably priced services was at the center of much of the discussion during the ...