As the fight for financial reform heats up, a diverse coalition of organizations are raising their voices in support of a strong Consumer Financial Protection Agency (CFPA). It’s a reminder that predatory lending and abusive financial practices hurt Americans from all walks of life—and that the stakes are too high to let industry lobbyists convince our lawmakers otherwise.
Latino groups speak out for financial reform
Latinos make up one group that has been particularly hard hit by deceptive and discriminatory lending practices. The Federal Reserve points out that during the height of the subprime boom, more than 46% of home purchase loans made to Latinos were high-cost loans, which are more likely to default. Payday and consumer lenders often target Latino neighborhoods, which can result in a cycle of unproductive, highly expensive debt. The CFPA would introduce new consumer protections on products like mortgages and payday loans, helping Latinos—and all consumers—build wealth and avoid the debt trap.