Predatory Lenders Lure Poor Into Risky Decisions

To the Editor:

Low-income families are lured by predatory lending practices to tread murky financial waters for much of their lifetime (Poor often don't know benefit of banks, Business, July 6). As a community it is possible to weed out this misinformation and help low-income families become financially stable. United Way of Massachusetts Bay and Merrimack Valley, with partner organizations and institutions, has been addressing this issue for many years with matched savings programs, quality financial education classes and counseling, policy efforts, and tax preparation that encourages using refunds wisely. With trusted information and support, low income residents can and do save, even on very limited incomes.

The United Way Financial Stability Center in Lynn, powered by SPIN (Serving People in Need, Inc.), helps community members overcome financial hardships. One such case involved a young, single mother of two children. She had her taxes filed for free at the Center, received her Earned Income Tax Credit, used her refund to pay off debt, and opened bank accounts. This was her first checking account, and she is saving. She now feels confident to manage finances for her family, providing them stability.

Undoing the damage of predatory lending practices takes time and entire communities, however by empowering low-income families, we ultimately move forward together.

Sincerely,

Michael K. Durkin

President