Raising Awareness of Predatory Lending
By: Source: AARP.org Date Posted: 2004-03-10 17:36:00-05:00
Delaware Attorneys Invited to Learn How to Protect Older Consumers
Over 80 percent of persons 65 and older are homeowners. For these older Americans, home equity is a primary source of financial security—accounting for roughly one-half of their personal wealth. And because they have more equity in their homes, they are often targeted by mortgage lenders and brokers who suggest they should capitalize on the capital available by borrowing against that home equity.
But mortgage lending can become predatory when vulnerable consumers are subjected to practices that put them at risk. Homeowners, who have fallen behind on their property taxes because they need money for medical bills or costly home repairs, may become prey for dishonest, aggressive lenders. And instead of taking out a fair loan, they find themselves locked into loans with high interest rates, outrageous fees and unaffordable payment terms. Some find themselves with loans they cannot afford to repay; instead of saving their homes, they may lose them to foreclosure. That's a high price for anyone to pay for a bad loan.
Because of the rising numbers of older homeowners who have become victims of predatory loans, the Community Legal Aid Society, Inc., Delaware State Bar Association Committee on the Law and the Elderly, AARP Foundation and AARP Delaware have joined together to sponsor a free, day-long training for attorneys on April 2 to help Delawareans who become the victims of predatory mortgage lending practices. Funded by a grant from the U.S. Administration on Aging, the AARP Foundation National Legal Training Project's "Elderlaw and Advocacy Skills Training" is designed for those who currently handle consumer and financial fraud cases or who are willing to take referrals of elderly clients from CLASI.
The event's primary sponsor, the Community Legal Aid Society, Inc.'s Elder Law Program, provides legal assistance to older Delawareans. Any state resident who is age 60 or older may qualify for assistance; there are no financial eligibility requirements. CLASI provides assistance with Powers of Attorney and Advance Health Care Directives; consumer problems, such as debt collection and home repair cases; and housing problems, including evictions and benefits issues, such as Medicaid and Social Security. The Elder Law Program represents victims of physical and financial abuse and fraud. CLASI also conducts community legal education workshops for older people about some of the legal problems that occur with advancing age. The predatory mortgage lending training is just one example of the type of workshop they support and promote.
Hosting the day will be the AARP Foundation's National Legal Training Project. Created in 1977 by a grant awarded to AARP from the U.S. Administration on Aging, the mission of the National Legal Training Project has been to protect the legal rights of older Americans by providing training and technical assistance to lawyers, paralegals, lay advocates and volunteers, who in turn offer free legal assistance to older individuals. Since 1985, the Project's Elderlaw and Advocacy Skills Training program has trained more than 6,200 lawyers, paralegals and other experienced advocates about elderlaw topics in 50 states. The National Legal Training Project provides free materials and pays all instructional expenses. Local sponsors, such as CLASI, are awarded the opportunity to host training programs in their state through an annual competitive process.
About the Event
Leading the day will be James Sugarman, a staff attorney with the AARP Foundation's Legal Counsel for the Elderly in Washington, DC. Mr. Sugarman is a nationally recognized expert on consumer fraud and financial abuse cases for elderly, low-income clients. Geared toward an audience with little or no experience in predatory mortgage lending, the training will provide information on handling cases under the Truth in Lending Act, the Home Ownership and Equity Protection Act and the Real Estate Settlement Procedures Act.
If you are an attorney in Delaware who specializes in elderlaw issues and would like to attend the free, day-long training, please contact Jason Stoehr, Community Legal Aid Society, Inc. at 302.575.0666, extension 248.
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- GAO Report
On index page go to GAO Reports/February 24, 2004/Consumer
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