The Ethics of Lending Money to Poor People

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The blast from the past back in 2003 shows that poor people never take into account that they are seen as risky borrowers(borrowers that are more likely to default on their loans). Many low income people equate predatory lending with higher interest rates on the amount they borrow. However, this is just Banking 101. Low income citizens are clearly more likely to not be timely with their monthly payments are simply quit paying. It sucks being poor. You are not entitled to a bank giving you a loan just because you screwed off in High School and are having rough time finding decent paying job. They have the right to assess  risk in their lending practices!

Ask Cristie Drumm former spokeswoman for Wells Fargo in Houston, TX:

Approximately 100 members of the Association of Community Organizations for
Reform Now, or ACORN, entered the Wells Fargo building on Louisiana

Street and  aggressively charged the bank of predatory lending practices.
ACORN has filed complaints with 12 state regulators to call for
investigations into Wells Fargo’s lending system, which members say
preys on low-income borrowers by charging them higher interest rates. Many of these demonstrations were held across the USA.

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1 comment on “The Ethics of Lending Money to Poor PeopleAdd yours →

  1. Cristie did excellent job of fending off criticisms of deposit advance loans as being as unethical as payday loans in a Denver Post piece by financial guru David Migoya. She is a survivor in the spokesman niche for a reason!!

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