Name of Host Organization: Housing and Economic Rights Advocates
City, State: Oakland, California
Issue area: Community Economic Development/Microfinance and Related Transactional Legal Projects, Consumer Rights
Megumi launched a legal project to eliminate barriers to credit by resolving abusive or bad debt and identifying obstacles to accessing affordable credit in low-income and Latino communities in the Bay Area.
Need Addressed By Project
The 2008 recession exacerbated inequalities by completely wiping out wealth and tightening access to credit in low-income communities. With no assets and no access to credit, communities have become increasingly vulnerable to shocks and emergencies, creating a desperate situation where predatory lending practices have flourished and people are trapped in debt cycles. This project aimed to eliminate predatory and abusive lending practices and facilitate access to affordable small-dollar loans critical for providing financial stability and building wealth to escape poverty.