Fact Sheets
These fact sheets provide basic information on a range of financial justice issues. Some materials are geared to community organizers and advocates. For more info, contact NEDAP: info@nedap.org.
- DEP Water Shut-Off Community Alert (pdf)
January 2008: The NYC Department of Environmental Protection (DEP) has recently implemented a plan to shut off water service for certain single-family homes that are delinquent on their water bills. There are over 6,000 single-family homes slated for possible water shut-off in the coming months, with many of these properties concentrated in communities of color - those same neighborhoods already at the center of the foreclosure crisis.
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March 2007: Earlier this month, HSBC announced that it will discontinue making “paystub” and “holiday” loans, which are high-cost, unsecured loans made to low income New Yorkers through tax prep sites like Jackson Hewitt and H&R Block before tax season even begins. NEDAP hails HSBC’s decision to eliminate paystub/holiday loans, and urges JPMorgan Chase and Santa Barbara Bank & Trust, the two remaining banks that make these loans, to follow suit. NEDAP will continue to work with allies, both locally and across the country, to press for an end to RALs. Included in this Alert are draft letters calling on JPMorgan Chase and Santa Barbara Bank & Trust to cease offering high cost paystub and holiday loans. Check back soon for the final version of these letters.
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Free Tax Prep Sites in NYC (pdf)
February 2008: NEDAP prepared this partial list of organizations that offer free tax preparation services to assist lower income New Yorkers. Please contact the orgnizations listed for more information about their services, eligibility requirements, languages spoken, and what to bring when having your tax return prepared.
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Predatory Lending Alert #1: New Paystub/Holiday Loans (pdf)
December 2006: NEDAP prepared this alert for community groups and not-for-profit tax preparers to inform them about loans that tax preparers and their partner banks are making before tax season even begins! These high cost loans are made based on a person's paystub, which is used to project his or her expected tax refund. The loan is unsecured, and is used to lure taxpayers back to the same tax prep service to get their taxes done and repay the loan. It is expected that many people who get these pre-tax season loans will pay them off with Refund Anticipation Loans, secured by their expected tax refunds and any Earned Income Tax Credits. In other words, these loans are a double-whammy, and exploit people strapped for cash.
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Basic Banking Accounts Information Sheet (pdf)
New York State-chartered banks are required by law to offer low-cost "Basic Banking" or "Lifeline" accounts that can be opened with as little as $25 and cost about $3 per month. Because banks often do not publicize these accounts, NEDAP has created a fact sheet describing the law.
- Community Development Credit Unions in NYC (pdf) - updated June 2007
Community Development Credit Unions (CDCUs) are member-owned financial institutions serving specific neighborhoods. They are typically open to anyone who lives, works, worships, attends school, or volunteers in the area served by the credit union.
- Tax Refund Anticipation Loans in New York (pdf)
New Yorkers for Responsible Lending prepared this fact sheet about "rapid refunds" and their impact on low income families, communities, and New York's economy.
- Free Annual Credit Reports
As of September 2005, every New Yorker has the right to receive one free credit report per year from each of the three national credit reporting agencies. This sheet explains how to order your free reports.
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Warning Signs and Resources for Homeowners
The New York City Foreclosure Prevention Task Force has created pamphlets for homeowners on high cost or "predatory" mortgage traps. They list the warning signs of a predatory loan, tips on how to protect yourself, and where you can turn for help. The pamphlets are available in English, Spanish, Korean and Chinese.
- Homeowner Resource Guide (pdf)
A listing of homeownership and mortgage counselors, legal services offices, foreclosure prevention counselors, city agencies and others that help NYC homeowners and first-time homebuyers. For more information about fair lending, visit the NYC Fair Housing Education and Outreach page.
Also available in Spanish and Arabic. The truth about immigrants' rights to open bank accounts, obtain loans and build credit. For more materials on immigrants' rights in financial services, visit the Immigrant Financial Justice Project web page.
- Electronic Benefits Transfer (EBT) - Frequently Asked Questions (pdf)
The EBT Working Group, a coalition staffed by NEDAP, has created a pamphlet for people using EBT, the system for electronic distribution of public benefits. All New Yorkers receiving cash assistance and/or food stamps must use EBT. This pamphlet tells people how to avoid ATM fees, who to call in case of an error, and other important information. (updated 12/06)
- Anatomy of a Securitization (pdf)
This color chart traces the path of a subprime mortgage loan through the complex apparatus of securitization, from the borrower to investors on the secondary market. The many entities involved in the mortgage origination and securitization are shown, including the broker, lender, and loan servicer, as well as the investment houses on Wall Street that fuel the subprime industry. (1 page, 2004)
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