Collaborative launches fight against lending scams

The Springfield-Greene County Reputable Lending Collaborative this morning announced its plan to combat predatory lending – a problem the group says is on the rise.

Bob Horton, Urban Neighborhoods Alliance executive director, detailed the “Don’t Borrow Trouble” initiative at a news conference at the Springfield Area Chamber of Commerce. UNA is a partner in the program.

The group will offer public education, counseling services and referrals to reputable lenders. A speakers group is available to present to any organization that shows interest, including neighborhood associations, senior citizens groups, church organizations and college classes, Horton said.

“We feel education is the key to eradicating predatory lending,” Horton said at the conference. “People have got to become better educated about what predatory lending is, whether it’s mortgage lending or payday loans or car title loans.”

The group notes practices to look out for, such as rushed loan closings, high broker fees, prepayment penalties and falsified documents. Predatory lenders often will target homeowners with credit problems, elderly homeowners, low-income households, minority households and individuals in financial crisis due to health problems.

The collaborative is an offshoot of the Housing Collaborative of the Community Partnership of the Ozarks, which a year and a half ago noticed an increase in cases of predatory lending across the country.

Area banks, organizations and financial institutions are sponsors of the program – namely, Freddie Mac, and a number of other groups are serving as partners. Those partners are Ozarks Area Community Action Corp., Consumer Credit Counseling Service, Community Partnership of the Ozarks, Habitat for Humanity, Catholic Charities of Kansas City-St. Joseph, Springfield Mayor’s Commission on Human Rights, Legal Services of Southern Missouri and Better Business Bureau.

To request the speakers group to educate an organization, call Horton at (417) 865-4774.