Fresno's Ethnic Press Learn About Predatory Lenders

Journalists from San Joaquin Valley’s ethnic press gathered July 7 to learn more about issues that impact their communities including homeland security abuses, immigration reform, climate change and mobilizing the youth. CRC was invited to present on consumer action reporting and creating a call to action against predatory financial institutions.

CRC Executive Director Alan Fisher presented on a panel with Russ Heimerich of the California Department of Consumer Affairs. They offered data intended to help members of the ethnic press write about the high number of predatory financial institutions that target their communities in the Valley. Mr. Fisher pointed out that on his drive through Fresno he saw many payday lenders and check cashers, who are notorious for their high fees and interest rates.

Mr. Fisher said that people in Fresno County lose more than $57 million to check cashers and more than $11 million to payday lenders. These services are provided at a smaller cost by major banks, but there are more check cashers and payday lenders in communities of color than there are bank branches. Mr. Fisher said there are only 85 bank branches in the whole county, while there are 155 check cashers, who charge 3-10 percent of a check to cash it. 

Other usurious lenders in the area peddle tax Refund Anticipation Loans (RALs) and high-cost mortgage loans to people of color. In Fresno, residents paid $4 million for RALs, which are expensive short-term loans that come with an average interest rate of 179 percent. And Latinos and African-Americans are more likely to be sold high-cost mortgage loans than whites in Fresno. Of the loans sold to Latinos, 21.4 % are high-cost and to blacks, 26.4 % are high-cost, while only 10.5 % of the loans sold to whites are high-cost.  

CRC received positive feedback from the audience and plans to continue to work with New America Media, who hosted the event. This was the third presentation on these issues that CRC has made to California’s ethnic press with New America Media. If you are interested in hosting a similar presentation in your area with CRC, please contact Victoria Leon Guerrero at 415-864-3980 or victoria@calreinvest.org.