Philadelphia City Council has introduced legislation to combat the practice, but the jury is still out on how successful that will be. State Rep. LeAnna Washington today introduced legislation to stop the practice of predatory lending in Pennsylvania. At a press conference held today in Harrisburg, Washington spoke of the devastating effects of these high interest loans and mortgages. The lenders involved prey upon poor and elderly consumers, promising extra cash and an end to financial burden. What they actually provide is ongoing and increased indebtedness and for many the loss of their homes and savings.
Predatory lending is the redlining of the new millennium.
A person s credit rating determines the rate at which they can get a loan. The worse the credit rating, the higher the interest on a loan, however, sub-prime rates pose an undue and unrealistic financial burden on those that need the help the most. The bill has bipartisan support and Washington is confident that the bill will pass quickly.