Combating Predatory Lending
 
First Nations has conducted two groundbreaking studies of predatory lending in Indian Country. The results show that predatory lending is a growing problem for Indians, who generally lack access to lending institutions for a variety of reasons. Based on our studies, First Nations has recommended that Native Nations act to combat predatory lending by:

(1) providing financial and consumer education programs,

(2) developing credit programs and borrowing opportunities that reduce the demand for predatory loans and help to repair credit, and

(3) adopting interest rate caps and other consumer protection laws.

On March 14th 2008, First Nations Development Institute released “Borrowing Trouble: Predatory Lending in Native American Communities,” a report detailing the predatory practices of lenders that target Native American communities. This landmark report is the result of a research study conducted by First Nations under a grant funded by the Annie E. Casey Foundation.
 
First Nations Development Institute presented testimony on "Predatory Lending and its Impact on Native American Communities" at a hearing before the Senate Committee on Indian Affairs held on June 5, 2008. The testimony is available in a written version and an audio version (10MG). (This may take a few minutes to load depending on the speed of your internet connection. When finished, hit the back browser button on your web-browser to return to First Nations.)

Below you will find links to resources produced by First Nations and our partners to address predatory lending and to create positive opportunities for Native people to build assets.

Predatory Lending Reports and Resources

 

Web pages with information about combating predatory lending

 
For further information contact:
 
Sarah Dewees
sdewees@firstnations.org
Director of Research
First Nations Development Institute
2217 Princess Anne St Ste 111-1
Fredericksburg, VA 22401
Tel/540.371.5615