2007 News

February 7 , 2007

Bucks County Commissioners Implore Bucks Countians: "Don't Borrow Trouble"
Bucks County Sheriff's Department, Consumer Protection, and Tax Claim Join Forces to Spotlight Abusive Practices

Continuing their commitment to combat predatory lending and consumer fraud practices, the Bucks County Commissioners have teamed up with the Suburban Philadelphia “Don’t Borrow Trouble” public education campaign, and the Bucks County Sheriff’s Department, Consumer Protection and Tax Claim departments to heighten awareness of predatory lending.

Today, the Bucks County Commissioners, Charles H. Martin, James F. Cawley and Sandra A. Miller, hosted a multi-jurisdictional press conference at the Bucks County Courthouse in Doylestown. The conference, emceed by Bucks County Department of Consumer Protection Director Michael Bannon, included opening remarks by Commissioner Martin, and personal stories from two Bucks County fraudulent lending victims.

“The issue of predatory lending is a growing problem in Bucks County and throughout the United States,” Martin said. “We want our residents to be educated about ways to detect and avoid these scams, and know where to seek assistance when they occur. We are proud to partner with the Don’t Borrow Trouble officials, and our fellow commissioners from Montgomery, Delaware and Chester counties in this worthwhile campaign.”

The Bucks County Tax Claim Department, under the direction of Theresa Savage, has taken a bold step in the predatory lending education process this week. As part of a tax-lien mailing to approximately 8,000 county homes, Don’t Borrow Trouble information will be included with the letter.

“This will be sent to approximately three percent of the taxpayers in Bucks County, but probably those who are most susceptible to predatory lending,” noted Savage.

The Suburban Philadelphia Don’t Borrow Trouble campaign, initially launched during February, 2005, is a multimedia strategy featuring brochures, a website and radio public service announcements aimed at advising and protecting consumers. This extremely large and diverse demographic includes the elderly, minorities and low-moderate income individuals.

During calendar year 2006, Don’t Borrow Trouble legal advisors handled 372 cases in the participating counties of Bucks, Chester, Delaware and Montgomery, including 87 in Bucks. Of the Bucks County cases, 71 percent involved mortgage foreclosures, while 23 percent were consumer cases and three percent bankruptcy cases.

Bucks County Sheriff Edward “Duke” Donnelly and his department will attack the foreclosure issue by distributing Don’t Borrow Trouble pamphlets with its foreclosure notices.

“This is a great opportunity to help those who may feel they are devoid of options,” Donnelly said. “We are excited to partner with other departments to make residents aware that they are not alone.

”Don’t Borrow Trouble is a groundbreaking venture, as it represents the first time Bucks, Chester, Delaware and Montgomery counties collaborated on a regional public service project. During its first year, 2005, the campaign distributed 70,000 informational brochures, postcards and door hangers in both English and Spanish. The help line (888-275-8843) received 353 calls, referred 98 calls to partnering consumer protection agencies and housing counselors, and referred 94 cases for further litigation (including one class-action lawsuit against a lender).

The press conference was scheduled during Consumer Protection Week, an annual event intended to raise awareness on issues such as predatory lending and a myriad more items.

In addition to the counties of Bucks, Chester, Delaware and Montgomery, organizations participating in the campaign include: Community Impact Legal Services, Freddie Mac, Bucks County Department of Consumer Protection, Chester County Bar Association, Montgomery County Department of Housing and Community Development, Chester County Department of Community Development, Delaware County Office of Housing and Community Development, Fair Housing Council of Suburban Philadelphia, Montgomery County Fair Housing Council, Pennsylvania Human Relations Commission, U.S. Department of Housing and Urban Development, Consumer Credit Counseling of Delaware County, Housing Partnership of Chester County, Housing Alliance of Southern Chester County, CCIP-Delaware County, and Legal Aid of Southeastern Pennsylvania.

Because predatory lending practices strip equity from homeowners, consumers should beware of tactics such as repeatedly refinancing a loan within a short period of time and charging high points and fees with each refinance; charging excessive rates and fees to a borrower who qualifies for lower rates and fees; or packing a loan with single premium credit insurance products like credit life insurance, while not adequately disclosing the inclusion, cost or any additional fees associated with the insurance.

According to Carolyn Johnson, executive director of Community Impact Legal Services, predatory lenders seek to deprive suburban Philadelphia homeowners of their most valued asset, their home. Johnson adds, “The first line of defense against predatory lenders is a public that is educated and aware.”

The Don’t Borrow Trouble campaign urges all individuals to use the help line (888-275-8843) to seek helpful advice when purchasing a home, refinancing, consolidating debt or taking out a home equity loan. It is also a tool for those who find themselves in trouble with foreclosure issues.

For more information about the campaign, visit the web address: http://www.dontborrowtroublesepa.org/03.htm. Another valuable resource can be found on the U.S. Department of Housing and Urban Development website, accessible via the link: http://www.hud.gov/offices/hsg/sfh/buying/loanfraud.cfm.