Desperate, Anderson had one option left. Poulikidis denied any wrongdoing. Every year thousands of American homeowners have similar complaints. If the homeowners can't pay, they can be evicted. Elderly consumers are most often at risk because they often own their homes, depend on someone else to undertake physically demanding home improvements and live on fixed incomes.
Critics call it predatory lending and say the problem is growing.
In March, Federal Reserve Chairman Alan Greenspan said he had convened a group of regulators from various banking agencies to deal with the problem. That same month, Housing and Urban Development Secretary Andrew Cuomo unveiled a national task force on predatory lending that will hold hearings and recommend strategies to combat the practice. The abuses occur despite federal consumer protection laws. Now, the Missouri and Kansas legislatures are considering bills that would add criminal penalties for unfair lending practices. In Kansas City, a task force is studying the issue, educating consumers and searching for ways to prosecute offenders.