Borrowing Trouble: Predatory Lending in Native American Communities

In 2003, First Nations Development Institute (FNDI) issued its first report on predatory lending in Native communities. This second report expands upon its analysis, updating information on the prevalence of predatory practices and adding new information from more recent quantitative data sources. It provides an analysis of survey data collected from attendees at the National American Indian Housing Council meeting in May 2007; survey data collected from Native users of selected Voluntary Income Tax Assistance sites; geo-coded data of payday lenders, bank branches, and Native community development finance institutions; and a national data set of home mortgage loans. This paper also presents five case studies of promising practices and concludes by offering concrete suggestions about the steps Native nations can take to curb the impact of predatory lending on their citizens.