About the Campaign
Campaign Goals and Objectives
Don’t Borrow Trouble RI offers free advice for people thinking about taking out a loan and help for people in danger of losing their home.
The overall goal of Don't Borrow Trouble RI is to promote stability and success among families and individuals targeted by predatory lenders through a public education initiative in the state. Particular emphasis will be given to vulnerable populations, particularly families in a financial crisis, communities of color and the elderly.
Consumers are encouraged to call the Don't Borrow Trouble RI help line at 800-436-3180 for free advice while buying a home, refinancing, consolidating debt, taking out a home equity loan or in need of mortgage foreclosure prevention. Callers will either be assisted directly through the help line or referred to nonprofit housing agencies with expertise in homeownership education and housing, financial counseling and legal assistance. The Don't Borrow Trouble RI help line is hosted by the Housing Network of Rhode Island, but answered as Don't Borrow Trouble.
The campaign's objectives are to:
- identify the impact of predatory lending in the state, including communities and households most affected;
- develop and launch a public education campaign targeted to neighborhoods and populations vulnerable to predatory lending practices. (e.g. elderly, new immigrants, communities of color, female single heads of households, and persons in a housing/financial crisis);
- identify, coordinate and expand community resources to counter and respond to predatory practices;
- build access for consumers to community resources;
- provide outreach and education to community organizations and community leaders to increase awareness and understanding of predatory lending practices; and
- assess the campaign's effectiveness in reaching communities and populations vulnerable to predatory lending.
Campaign Stakeholders
The Don’t Borrow Trouble RI campaign was launched by Rhode Island Housing in October of 2003 with grant funds received from the U.S. Department of Housing and Urban Development. The campaign, administered by Rhode Island Housing, is supported by a coalition of organizations that include nonprofit housing groups, government agencies, financial institutions, housing and homeownership counseling organizations, Fannie Mae and Freddie Mac.
Don't Borrow Trouble was pioneered in Boston by Mayor Thomas M. Menino and the Massachusetts Community Banking Council and is being expanded nationally by Freddie Mac to 42 cities nationwide. Click here to learn more about the national Don't Borrow Trouble effort.
Responding to Predatory Lending
The campaign responds to a wide range of predatory lending issues, including debt consolidation, refinancing/mortgage flipping, foreclosure rescue scams, property flipping and more.
Buying or refinancing a home is a bigger financial decision that it used to because housing prices are going up so fast. The median sales price of single family home in most Rhode Island cities and towns has doubled since 2000.
With property values increasing, many homeowners are experiencing a rise in their home equity, and predatory lenders are attempting to get their hands on this newly available wealth. Families are now grappling with mortgage flipping, where predatory lenders prey on consumers with high debt or in a financial crisis who have available equity. After repeated refinances that often consolidate debt, the homeowner actually incurs increased debt and loans with high fees and interest rates, ultimately stripping them of their equity and even leading to foreclosure. There are many ways that dishonest lenders can take advantage of unsuspecting consumers. Click here for tips on How to Spot a Predatory Lender.