It has always been acceptable for the rich to prey on and take advantage of the most vulnerable
segments of our nation. It just so happens African Americans are often those taken advantage of
most, which is a function of our educational backgrounds and limited understanding of economics
and business. One reason is that poverty is very prevalent among African American communities
compared to other racial ethnic groups. A terse overview of credit discrimination and predatory
lending and its impact upon African American efforts to achieve homeownership and, develop
wealth is in many cases intentionally. This is made easy by the use of many tools including legal
instruments such as the crop lien and installment contract, as well as the subjective purview of
the individual lens of the lender.
African Americans may as well have a sign on their backs for unscrupulous lenders. Being poor,
ignorant and ill- informed is usually a sign that, as a group we can be taken advantage of. Only
18 percent of African Americans 25 and older have a bachelor’s degree or higher leaving one
in three African American children in families that have trouble providing for them. According
to the 2010 Census, African Americans comprised 13.6 percent of the total U.S. population.
Unfortunately recent data also reveals that African Americans experienced the highest poverty
rate, at 27 percent, up from 25 percent in 2009, compared to 9.9 percent of whites who lived in
poverty, up from 9.4 percent in 2009. This means that the number of blacks living under the
poverty line — which is $11,139 for an individual in 2010 — rose to 10.7 million, up 1.6 percent.
In addition, the median white household wealth was about $113,000. Compared to about $5,700
for African Americans. Plus in August of 2012, African American unemployment hit 16.7% its
highest level since 1984, according to the Labor Department.
