Statewide Predatory Lending Initiative

Tennessee Alliance for Legal Services - 040033

Abstract Number: 040033

June 2004

The Tennessee Alliance for Legal Services (TALS) coordinates a statewide predatory lending initiative to protect Tennessee's low-income client community from exploitive lending practices. As charged in Tennessee's state plan, the TALS coordinates eight statewide task forces that include staff from Legal Aid of East Tennessee, Memphis Area Legal Services, Legal Aid Society of Middle Tennessee and the Cumberlands, West Tennessee Legal Services, and pro bono lawyers from private firms. In 2002, the consumer law and housing task forces decided to launch a joint predatory lending initiative which draws on the expertise of attorneys who participate in both of these task forces.

Tennessee's task forces meet biannually in the spring and fall and with the launch of this initiative, experienced task force attorneys began to offer a series of trainings on predatory lending. These trainings sought to equip staff with the skills to identify clients who have been taken advantage of by predatory loans and the avenues through which clients can attain relief from exploitive loan agreements through the Home Ownership and Equity Protection Act, the Truth in Lending Act, and select Tennessee state statutes. The task forces also offers a separate training track specifically for intake staff and paralegals to help these staff members identify potential predatory loan victims during the intake process. West Tennessee Legal Services operates a HUD grant which provides additional training to task force members, private attorneys, bank loan officers and housing authority staff on predatory loan litigation. These biannual meetings and trainings are also reinforced by regular exchanges on task force listservs as well as monthly conference calls.

In 2002, Tennessee's General Assembly requested that TALS and other members of the legal aid community provide information on predatory lending in Tennessee to a Joint Study Committee on Predatory Lending. The Consumer Law and Housing Task Forces responded to these requests by commenting on draft legislation and by providing information on how Tennessee's low-income community has been adversely affected by predatory lending. The general assembly is considering adopting an anti-predatory lending law.

Contact Information:

Erik Cole
Tennessee Alliance for Legal Services
1808 West End Building, Suite 1216
Nashville, Tennessee 37203
Phone: (615) 627-0956
Fax: (615) 627-0964
ecole@tals.org

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