The media, federal watchdogs and the mortgage industry have chronicled predatory lending cases, particularly the barrage of suits that drove an otherwise solvent First Alliance Corporation in Irvine, Calif. into bankruptcy. After Federal Reserve Chairman Allan Greenspan's recent criticism of predatory lending, Consumers Union demanded the government stop dragging its feet on the issue. Congress knows predatory lending is a problem The Clinton administration knows this is a problem. Now the chairman of the Federal Reserve himself is saying this is a problem. Yet some companies persist in trying to trap people with these rip-off loans by targeting specific neighborhoods and segments of the population.
Actions speak louder than words.
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