Responsible Lending – Trillium Asset Management

KeyCorp – Racial Impact of Overdraft Policies and Practices (2021)

September 9, 2021

WHEREAS: KeyBank charges a flat $33 fee when it pays a customer’s check, ATM withdrawal, or certain other electronic transactions, even though the customer’s account lacks sufficient funds to cover the charges (if the customer opts-in). In 2019, this resulted in KeyBank collecting over $148 million in overdraft/NSF fees. This represented over 7% of its non-interest income and 44% of its service charge income. According to 2018 and 2020 Center for Responsible Lending reports: account holders incurring large numbers of overdraft fees are more often low-income, single, non-white, and renters; customers often pay more in overdraft fees than the overage …

Payday Lending – Wells Fargo (2013)

November 26, 2012

WHEREAS Predatory loan products such as payday loans have received significant public criticism for their high interest rates and rates of repeat borrowing. Our company is currently extending high-cost direct deposit advances that resemble payday loans and could expose customers to a costly “debt trap.” We believe these advances present serious hazards to Wells Fargo most financially vulnerable customers and to the company itself. Wells Fargo charges $7.50 for each $100 borrowed through direct deposit advance. Loans are repaid automatically, in full, out of the customer’s next direct deposit. Research from the Center for Responsible Lending demonstrates that the typical …

Payday Lending – Fifth Third Bancorp (2013)

November 26, 2012

WHEREAS Predatory lending like payday loans have received significant public criticism for their high interest rates and rates of repeat borrowing. Our company is extending high-cost direct deposit advances that resemble payday loans and could expose customers to a costly “debt trap”. We believe these advances present serious hazards to Fifth Third’s most financially vulnerable customers and to the company itself. Fifth Third (“FITB”) charges $10 for each $100 borrowed through direct deposit advance. Loans are repaid automatically, in full, out of the customer’s next direct deposit. Research from the Center for Responsible Lending demonstrates that the typical user of …

Goldman Sachs – Loan Servicing Policy and Report (2009)

February 25, 2009

WHEREAS Our corporation is one of the largest servicers of subprime and other alternative housing loans with servicing rights of about $54 billion of subprime loans as of the end of June and with other purchases from Fremont General in June and about $1.2 billion of loans and servicing rights from Popular Inc in September. The Mortgage Metrics Report of the Office of Thrift Supervision and the Office of the Comptroller of the Currency for major servicers under their supervision shows over 11 % of subprime loans were seriously delinquent. Of these seriously delinquent loans of lenders supervised by them, …

Countrywide Financial – Report on the Subprime Mortgage Resets (2008)

January 23, 2008

WHEREAS Whereas the problems resulting from poor subprime lending safeguards are having negative impacts on our company, millions of homeowners, our national economy, and global financial markets. Subprime borrowers in adjustable rate mortgages may face unaffordable loan payments following rate resets, resulting in payment delinquency, foreclosure proceedings, and the loss of homes, negatively affecting communities, borrowers’ credit ratings, and their ability to purchase a home in the future. Subprime adjustable rate mortgages worth almost $600 billion are expected to experience rate resets by the end of 2008. Credit Suisse predicts that between August 2007 and July 2009, one million subprime …

Bank of America – Moritorium on Coal Financing (2008)

January 23, 2008

WHEREAS Bank of America (BOA) is a diversified financial services company providing banking,investment, investment banking, credit card and consumer finance services.BOA recognizes that its ability to attract and retain customers and employees could be adversely affected “to the extent our reputation is damaged” and that “failure to address, or to appear to fail to address various issues” could damage the Corporation and its business prospects. (2005 Annual Report)BOA also recognizes that: The health of our company is dependent on the health of communities and our society; Climate change and atmospheric pollution represent a risk to the ultimate stability and sustainability …