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Many Minorities Avoid Seeking Credit Due to Generations of Discrimination. Why That Keeps Them Back.

Many Minorities Avoid Seeking Credit Due to Generations of Discrimination. Why That Keeps Them Back.

The following is excerpted from a CNBC article by EHRP contributing editor Lori Teresa Yearwood.

For many minorities in America, it’s an all too familiar scene.

An applicant who is a person of color and and applies for credit is either denied or gets much worse terms than a white borrower.

In fact, an investigation by the National Fair Housing Alliance, a Washington D.C.-based nonprofit, found that 60% of the time, applicants who were people of color — and way more financially qualified than their white counterparts —nevertheless were offered higher-priced car loans, costing them an extra $2,662 each over the course of the loan.

Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) joined forces in May to introduce the Loan Shark Prevention Act to “combat the predatory lending practices of America’s big banks and protect consumers already burdened with exorbitant credit-card interest rates.”

The legislation would cap interest rates at 15%, likely benefiting many consumers of color.

 

Read the full report on CNBC.com.

Save An Endangered Species: Journalists

Lori Teresa Yearwood is a trauma-informed reporting fellow for the Economic Hardship Reporting Project. Her work has also been recently featured in the Washington Post, the Guardian, the San Francisco Chronicle, the American Prospect, and many other publications. Photo © Preston Gannaway

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