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Groups Receive Funding to Combat Predatory Lending

By Tom Weber, KWMU

St. Louis – Two groups are getting some extra money to help people who have been ripped off by loan sharks.

The "Don't Borrow Trouble" campaign warns people not to apply for loans or re-financing that seems too good to be true. It's getting an extra 54-thousand dollars from a nationwide lawsuit settlement.

Chris Krehmeyer, with the group Beyond Housing, says predatory loans often have high interest rates and hidden fees.

"We're talking about senior citizens living in their homes for 30, 40 years and then being preyed upon, being coerced, being cajoled into signing something that they probably don't [need], and they wind up losing their house," Krehmeyer said. "I mean, how awful is that? People are making money at this."

The new money will also help keep a hotline running.

People can call that hotline if they've been ripped off.


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