REMARKS
Public Advocate Jumaane Williams on prohibiting discrimination in credit issuance
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153 sec
Public Advocate Jumaane Williams advocates for bill 00401 against discrimination in credit issuance, emphasizing the need for transparency and equal treatment.
- Thanks the chairs and members of the committee on consumer work protection and civil human rights for convening the hearing.
- Outlines the bill's aim to prevent discrimination based on protected characteristics in credit issuance and mandates transparency in rate calculations.
- Cites significant discrimination cases and settlements as impetus for the legislation, including actions against Honda Credit and Citigroup.
- Points out the relevance of the bill in combating historical and ongoing discrimination in financial services and lending.
- Advocates for the bill's passage to enhance consumer protection and to uphold fairness in credit access for historically discriminated groups.
Jumaane Williams
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Thank you so much.
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As I mentioned, my name is Mani Williams, a public advocate for the City of New York.
0:08:01
I wanna thank our chairs, menin, and Williams, and members of the committee on consumer work protection and civil human rights for holding its hearing.
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Today, I'll be speaking on introdeduction 0 401.
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Which I am the prime sponsor.
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The bill will prohibit discrimination based on individual membership in a protected class and the issuance of credit would require creditors to disclose the potential disclose 2 potential borrowers how their rate was calculated.
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More specifically, the bill would deem it in an unlawful practice sorry, a demon and unlawful discriminatory practice for any creditor or in any officer, agent, or employee to this discriminate in the granting withholding, extending, or renewing of any form of credit on the basis of an applicant's race, creed, religion, national origin, sexual orientation, age, gender, and disability among other classifications.
0:08:50
I first introduced this bill during my tenure as a council member in 2016, The bill's original introduction in 2016 was inspired by a $24,000,000 settlement, alleging that Honda Credit is engaged in a patent or practice discrimination against African American, Hispanic, and Asian Pacific island islanders borrowing borrowers in auto lending.
0:09:08
It was nearly It has been nearly 10 years since the bill was introduced.
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And the need for it still remains in 2023, Citigroup settled for $26,000,000 for claims that It's employees denied Armenian Americans for their access to Citigroup credit cards.
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Mortgage lenders such as Wells Fargo And Navy Federal Credit Union also faced heightened scrutiny and lawsuits on the lending practices and high disparities, notably between black and Latino homeowners against white homeowners.
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And I met with Wells Fargo myself shortly before the news broke and they vehemently tried to suggest that this was not the case while it really appears that it is.
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Currently, there are federal laws such as the Truth and Lending Act and the Equal Credit Opportunity Act that provides safeguards for consumers in their dealings with lenders and creditors.
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The city should enact similar policies at the local level that fortify existing consumer protection laws.
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It's 00401.
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Could help 100 of 1000 of people applying for mortgages, small business loans, and other types of credit.
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Having in place a law that mandates transparency in how a person's interest rate is calculated will also protect groups of people in the city that face historical discrimination and unfair treatment when it comes to banking, homeownership, and accessing financial opportunities.
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Arranged my colleagues to sign on this bill.
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I hope for a subsequent passage.
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I would also like the clerk to please sign me on to intro 69242279, which sound like great bills as well.
0:10:28
Thank you so much.