“THE DON’T BORROW TROUBLE HOTLINE”
A RESPONSE TO AN OUTCRY FOR HELP

My experience as a Summer Intern in the Consumer Housing Unit: Predatory Lending Division

Dionne Wiggins
Pennsylvania Legal Assistance
Philadelphia, Pennsylvania

            I can recall being a twelve-year old girl, embellishing in my daydreams of one-day becoming an attorney.  I wanted to have all of the finer things in life.  I wanted to become a rich and famous attorney.  I remember watching television and admiring the fame, fortune and power that appeared to come along with having this type of legal career and I wanted that for myself.  As a native New Yorker, I always geared everything I did towards making money.  In order to survive in New York City, money was a true necessity.  I understood that the purpose of an attorney is to give legal counsel to those in need of assistance, but I wanted to do this for famous people.  I wanted to become an Entertainment Attorney. 

Life experiences have since corrected my thoughts.  My summer experience at Philadelphia Legal Assistance has confirmed that my path in life is destined.  I am here to help those who are truly in need of Legal Assistance ... clients who otherwise would be without legal aid. 

Philadelphia Legal Assistance is a public-interest law firm that provides legal assistance to low-income individuals in Philadelphia County.  One noteworthy example of the service provided by this institution is the implementation of the “Don’t Borrow Trouble Hotline.”  One might ask, “What is the ‘Don’t Borrow Trouble Hotline’?”  My response would be that it is the answer to many prayers.  This Hotline allows low-income homeowners to place calls directly to the Consumer Housing Unit when they are in need of legal assistance.  The most common issues faced by these homeowners involve predatory loans, city tax liens, mortgage foreclosure and Sheriff’s Sales. Philadelphia Legal Assistance was afforded the opportunity to reach out to these individuals through funding provided by the Office of Housing and Community Development. 

For years, homeowners in low-income neighborhoods have been targeted and victimized by lenders who prey upon them because of their lack of knowledge with respect to fair lending practices.  This victimization is called “predatory lending” and it is a violation of the Truth in Lending Act.  The Truth in Lending Act is a consumer protection law that requires lenders to disclose all terms of the loan, including all loan costs, true interest cost as an annual percentage rate and the total number of payments that the homeowner will make over the term of the loan contract.   Instead, these lenders “mask” the most important terms of the loan contract, such as repayment terms and the penalties for failing to meet the required repayment obligations.  Moreover, the interest rates are astronomically high and homeowners receiving these loans are most often unable to afford the monthly payments.  Ultimately, these individuals find themselves back in a situation in which they are once again facing the risk of losing their home.

Knowledge is a powerful tool and it is instrumental in the evolution of each and every society in our country today.  Lack of knowledge thereof places these homeowners in cataclysmic situations.  Homeowners who continue to fall victim to predatory lenders and lose their homes, will eventually increase the city’s homeless population.  The Don’t Borrow Trouble Hotline is a direct response to this crisis in respect to its impact on the City of Philadelphia. 

As a Hotline staff member, my duty was to retrieve calls placed by clients and do a general intake of their information.  In some urgent cases, it was necessary to make appointments for the clients to come into our office to speak directly with one of the Hotline staff members or the Hotline Supervisor, Dawn T. Williams, Esq.   Our clients were then assigned to a Housing Counseling Agency for assistance or referred to the Philadelphia Bar Association for attorney assistance, based upon the outcome of the intake interview.  The ultimate goal is to address the client’s issues by listening to their claims, offering them the assistance they need and doing everything possible to prevent them from losing their homes. 

There is a great need for community outreach in the low-income neighborhoods in the City of Philadelphia.  Philadelphia Legal Assistance is aware of this need and the cries of these homeowners have been heard.  No longer will their cries go unheard or fall into a black hole.  The Don’t Borrow Trouble Hotline is a major step towards marking the beginning of the end of the existence of Predatory Lenders in the City of Philadelphia and I am proud to be a part of this revolution.  There is no glamour, fame or fortune in practicing Public Interest Law, but there is the satisfaction of knowing that you played a major role in preventing a crisis from occurring in someone’s life.  In my eyes, there is no value that can be placed on such an accomplishment.