New attack on predatory lending
Sub-prime lenders are suffering double-digit drops on Wall Street. Consumer advocates say it's the fallout of shady lending practices, and today they launched a national campaign to address the problem.
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SCOTT JAGOW: A huge drag on Wall Street the past few days has been sub-prime mortgage companies. Investors are punishing these firms for being too eager to hand out bad loans. Today, consumer groups are piling on. They’re starting a new campaign against the whole lending industry for trying to take advantage of people. More now from Dan Grech.
DAN GRECH: A brand-new consumer group is starting a drive today against what it calls “predatory lending practices.”
Americans for Fairness in Lending brings together the nation’s top consumer and civil rights organizations. Coalition director Kirsten Keefe is particularly critical of sub-prime home loans.
KIRSTEN KEEFE: And it is interesting and a little bit ironic that we are launching just at the moment where at least the sub-prime mortgage lending industry is really starting to tangibly collapse.
Banks and credit card companies spend tens of millions a year in advertising and lobbyists.Keefe says her nonprofit has raised just $500,000 for its media campaign.
KEEFE: It is an absolutely David and Goliath situation, no doubt.
Their new website, launched today, can be reached at AmericansForFairnessInLending.org.
I’m Dan Grech for Marketplace.