by Tammy Taylor
Staff Writer
Representatives from Jacksonville Area Legal Aid, Mayor John Peyton and City Council member Kevin Hyde announced a partnership Friday to fight predatory lending in Jacksonville.
The City has provided a $250,000 grant to Legal Aid to help fund the three full-time attorneys assigned to the project over the next year.
“This is very significant just from a legal standpoint — three attorneys devoted to this particular issue,” said Hyde.
Predatory lenders are companies that offer debt relief through cash loans. These loans are often issued with a 300 percent interest rate, said Legal Aid attorney Lynn Drysdale.
The cash loans usually result in borrowers incurring more debt by adding burdensome repayments. If payments are not made, borrowers are in danger of losing their homes, vehicles or income.
“These are not members of our community, but are big nationwide and worldwide firms that are providing these payday loans and refund participation loans that are taking money out of our community, taking money out of our citizen’s pockets, and putting it in their own,” said Drysdale. “I’m proud to say that this administration is saying ‘The buck stops here,’ quite literally. The money that’s coming out of the pockets of our citizens is going to stay with our citizens.”
According the Drysdale, the primary focus of the pilot program is “making sure members of the community don’t fall victim by using education.” The task force also plans to push legislation and litigation locally.
Present at the announcement was a predatory lender victim who had gone to a finance company for a life insurance policy. The victim’s husband was undergoing kidney dialyses treatments, and soon after the policy was issued, died. The finance company, which had assured the victim her husband’s treatment would not interfere with collecting on the policy, was denied compensation after his death, listing the reason as preexisting illness. The victim lost her home.
That was just one of the numerous examples Drysdale gave at the presentation.
Soon after the presentation concluded, Council member Hyde, a fellow attorney, told Drysdale, “Foley & Lardner is prepared to help you all out. Our firm is prepared to do that.”