Return to Current Issue

An investigation into local predatory lender, Conseco, was one of a series of victories announced at the second of seven hearings on abusive lending practices being held across the country.

Iowa Citizens for Community Improvement's (Iowa CCI) victories against predatory lending came out of its public hearing with Ron Isaac of the Federal Trade Commission (FTC), Iowa Attorney General Tom Miller, and Iowa Superintendent of Banking Holmes Foster in attendance.

Isaac committed to attending all seven hearings at the National People's Action Conference (NPA) in March. The FTC is responsible for protecting consumer's rights.

Ninety people attended the public event where victims of predatory lending shared their stories and local bank representatives discussed how predatory lenders threaten the lending industry. CCI leaders demanded that the federal and state regulators work with Iowa CCI and NPA to stop these destructive lending practices.

Both Miller and Foster agreed to work with Iowa CCI in developing a massive anti-predatory lending education campaign. Miller earned cheers and applause when he later asked that CCI turn over all Conseco Finance documents to his office.

"We will be doing investigations in Iowa of companies that we think are the most egregious," said Miller, "We want your (CCI's) help. You can help us gather the evidence. We want to do that with you, we want that partnership."

"This is a huge win for us," said CCI member Sally Riggs, chairperson of CCI's Predatory Lending Task Force. "And it is only the beginning."

"Predatory lending is a problem that we must stop," Riggs continued. "Tonight is just one step towards solving the problem. CCI, NPA, government regulators, legislators, banks, and citizens need to continue working together until home owners are safe from these loan sharks."

CCI member Linda Stanley demanded that Isaac commit to attending the final five NPA hearings and that he attend the 2002 NPA Conference in Washington, DC. Isaac agreed to do both, but when asked to investigate Conseco Finance, he did not make any public commitments.

"We are going to send the FTC everything we have on these crooks," Stanley stated. "Going after a few companies and getting them to change their practices is not going to help the families who have already been screwed. We need action."

Stephen Henry, President of Iowa State Bank, urged the regulators to take a close look at predatory lenders. "Iowa State Bank and CCI are aggressively providing the streetlights necessary to illuminate the immoral practices of predatory lending," he said. "And we ask that third-party oversight be applied to any business that offers home loan programs."

The stories shared by victims focused on Conseco Finance, the top predatory lender in Iowa. While many companies have stopped the selling of single premium credit insurance, Stanley pointed out that "Conseco Finance continues to cram this crap down borrowers' throats. It's just simple greed, that's all it is."

Attorney General Miller agreed with CCI's statements on single-premium credit insurance. "That's just a rip off. There is no excuse for that," he said. Iowa CCI's Predatory Lending Task Force held its first working meeting with the Attorney General's office on Oct. 11 and will meet with Foster the following week.

"We will do everything in our power to stop these predators," exclaimed CCI task force member Mike Worrall. "And now we have some big guns on our side."