Borrowing Trouble

Predatory Lending in Native American Communities

Posted January 1, 2008
By First Nations Development Institute
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Summary

Predatory lending practices, which increased with the collapse of the subprime mortgage market, disproprortionately target Native American communities and other vulnerable populations. This report provides an overview of the predatory lending practices that have had a harmful impact on Native people and highlights the efforts of five Native Nations to fight this growing problem.

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Key Takeaway

Fighting predatory practices with education and empowerment

Native Americans have long been a prime target of unscrupulous predatory lenders who promise quick, easy access to cash in exchange for interest and fees that keep borrowers in a spiral of debt. In response to this growing problem, five Native Nations have developed innovative, replicable strategies based on financial education, alternative financial products and services, and asset-building programs and approaches to help their citizens get out of the dangerous cycle of debt and gain financial stability.