Banking and Our Values
Resources for evaluating your financial institutions
Just Principles for Financial Transactions developed by
Center for Responsible Lending through their conversations with faith groups
honesty, clarity, transparency and evenhandedness. All sides should have
the same opportunity to understand and negotiate a contract. Kick backs
and fees that distort lender and broker incentives to deal fairly with
customers should be eliminated.
- Prohibit unconscionable rates of interest. Usury caps to
address abusive lending should be reinstated.
- Include traditional underwriting standards. Lenders have a
responsibility to assess whether borrowers can repay.
- Support equity in credit across communities. Practices that
particularly burden communities of color or low-income communities must be
- Limit fee-based penalties and business models that depend on
consumer-over spending and recurrent indebtedness. Penalties against
repaying debts early should be eliminated.
- Require that the interest and fees charged
on a loan are reasonable and proportional to the services rendered.
- Call upon that banks and credit unions provide a range of
responsible banking and credit products in their communities.
- Establish financial institutions which adhere to these
principles in poor neighborhoods and other underserved communities.
Ms. Edith Rasell, Ph.D.
Minister for Economic Justice
700 Prospect Ave.
Cleveland, Ohio 44115