NEW YORKERS FOR RESPONSIBLE LENDING

NEWS RELEASE

NEW YORK STATE FAIR LENDING COALITION UNVEILS 2007 PLATFORM

129 Groups Call on State Lawmakers to Ban Predatory Tax Loans and Ensure Fair Access to Financial Services for All New Yorkers 

MARCH 1, 2007 - New Yorkers for Responsible Lending (NYRL), a coalition of 129 consumer and community groups from across New York State, called on the Governor and Legislature today to crack down on abusive lending practices, such as tax refund loans, and ensure fair access to financial services and insurance products for all New Yorkers.  

This year, in addition to continuing its campaign against mortgage lending and real estate abuses, NYRL has identified abusive debt collection practices, tax refund anticipation loans, and fair access to property and casualty insurance as among its priority issues.  Founded in 2000, NYRL has been at the forefront of anti-predatory lending efforts in New York. 

“NYRL’s 2007 platform addresses the growing array of high-cost and abusive financial services practices that deprive New Yorkers of their hard-earned assets and prevent low income people from gaining economic ground,” said Sarah Ludwig, Executive Director of the Neighborhood Economic Development Advocacy Project and founding NYRL member.

“Abusive debt collection practices have become a major problem for seniors and low income New Yorkers,” said Geneva Conway, AARP Member and Volunteer.   “Among the worst abuses is creditors' freezing of bank accounts that contain Social Security and other 'exempt' benefits, which are off limits to creditors by law.  This causes severe hardship when seniors find they don't have access to their accounts and cannot pay their rent or buy food.”

“Tax refund anticipation loans stripped more than $156 million from New Yorkers’ pockets, in 2005,” said Russ Haven of the New York Public Interest Research Group.  “These are usurious short-term loans that prey on working people strapped for cash.  New York has an obligation to put an end to these abusive lending practices in our state.”

“New York took the lead last year in passing the Home Equity Theft Prevention Act, which cracks down on foreclosure rescue scams that have proliferated in our state,” said Kirsten E. Keefe, Staff Attorney at Empire Justice Center in Albany.  “NYRL is calling for vigorous enforcement of the new law, which went into effect last month. We ask the State Banking Department to educate real estate lawyers and agents, as well as title companies, to comply with the law.  Homeowners in foreclosure are routinely targeted by unscrupulous speculators, and must be informed of the important protections the new law affords.” 

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New Yorkers for Responsible Lending is a coalition of 129 New York community financial institutions, community-based organizations, affordable housing and first time homebuyer groups, advocates for seniors, legal services organizations, and community reinvestment, fair lending, and consumer advocacy groups.  www.nedap.org/nyrl