Law Commons^™

City Government And Predatory Lending, Jonathan L. Entin, Shadya Y. Yazback

Faculty Publications

Predatory lending is heavily concentrated in low- and moderate-income neighborhoods and disproportionately affects minorities and the elderly. The consequences of predatory lending are devastating not only to the consumers who fall prey to unscrupulous lenders' tactics, but to the community as a whole. For these reasons, many cities have tried to regulate or prohibit the practice. These efforts face formidable legal obstacles, however. This article examines the problems that cities face in suing as parens patriae on behalf of their residents, the strong possibility that even home rule municipalities will find their efforts preempted by state law, and the growing …