Borrowing Trouble: Predatory Lending in Native American Communities
A new report from the First Nations Development Institute details the practices of lenders that target vulnerable Native-American borrowers who often cannot afford to repay the loans, resulting in foreclosure, bankruptcy, and other financial hardships. Funded by the Annie E. Casey Foundation, the report, Borrowing Trouble: Predatory Lending in Native American Communities (36 pages, PDF), found that few tribes have passed legislation to limit predatory lending on their reservations. To limit such activity, the report recommends that Native nations develop credit programs and borrowing opportunities that reduce loan demand as well as consumer education programs that assist in financial planning and credit repair.
