CUs help Latinos hoodwinked by scams
SEATTLE (9/14/06)--When White River CU reached out to a Latino woman hoodwinked by a predatory lender, it illustrated the vital role that credit unions can play in helping Latinos targeted by scams.
Teresa Belmont, a single mother of four who works two jobs, had agreed to buy a used Chevy van at 15% interest. The Spanish-speaking car salesman convinced Belmont that the high interest rate was the best deal available to a Mexican immigrant with little credit history.
The dealership later insisted that Belmont return to sign a second set of paperwork or risk having the van repossessed (The Seattle Times Sept. 10).
A year later, Belmont heard White River CU CEO Linda Kleppe-Olson talking about credit unions' outreach to Latinos on a Spanish-language radio program.
After Belmont brought her papers to the credit union, Kleppe-Olson called the dealership and learned that signing the second set of papers had almost doubled Belmont's interest rate. Despite a down payment of $2,500 on the $9,000 van, Belmont's 29% interest-rate loan would have forced her to pay more than $16,000.
Kleppe-Olson helped Belmont close out the predatory loan and replace it with a credit union loan at 8.2% interest. Today, the van is almost paid off.
Experts say lack of access to mainstream financial services often forces immigrants to pay too much for wiring money, getting money orders, cashing checks or obtaining credit.
The State Attorney General's Office is holding meetings Oct. 3 and Oct. 20 to help providers and community organizations brainstorm about how to help Hispanic residents protect themselves.
The Washington Credit Union League has made a special effort to offer information about credit union services to the state's Latino residents, who make up nearly 9% of the population.
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