Our Programs: Combating Predatory Lending

Combating Predatory Lending

For Native Americans, the impact of predatory lending is devastating because it destroys the potential for asset building that is needed to bring economic security to Indian families and communities. First Nations Development Institute’s research has demonstrated that predatory lending is stripping money from low-income tribal citizens, especially those who are unbanked or underbanked. Our studies on predatory lending in Indian Country include best practices to combat abusive lending and prevent the bleeding of assets from Native communities.

What is predatory lending?

Predatory lending strips assets from reservation and rural American Indian families and their communities.  Predatory lending intentionally places consumers in loans with higher costs than loans offered to similarly qualified consumers.  The primary purpose of these high cost loans is to enrich the lender with little or no regard for the costs to the consumer. These unscrupulous actions by a lender entice, induce and/or assist a borrower in taking a loan that carries high fees, a high interest rate, strips the borrower of equity, or places the borrower in a lower credit rated loan to the benefit of the lender.