Pheffer: Don’t Allow Banks To Remove Services
Assemblywoman Audrey I. Pheffer has denounced federal plans that would weaken banking services in low and moderate-income communities throughout New York.
Assemblywoman Pheffer, along with other Members of the Assembly, are taking a strong stand against the proposed rule changes that would weaken the Community Reinvestment Act. The statute serves as a tool to prevent economic apartheid that very often will leave low and moderate-income communities starved for banking services and capital.
“If implemented, these changes would cause traditional banks to completely leave lower income areas only to be replaced by predatory mortgage lenders and abusive payday lenders,” said Pheffer.
If the rule changes were passed, those most in need of reinvestment financing, mortgages, and loans may not be able to obtain them and many communities could experience a significantly large reduction in community development capital.
The changes would be detrimental to all New Yorkers and would lead to a reduction in basic banking services which will give rise to payday lending, check cashing, and other high cost and predatory banking services.
“A community’s revitalization depends on growth. This grown can only be accomplished with financial investment. Our banks must continue to be the funding source – our communities depend on them,” stated Assemblywoman Pheffer.