"Don’t Borrow Trouble" Campaign
Hotline #: 1-800-477-5977
Websites:
www.lacity.org/lahd/ and www.dontborrowtrouble.com
Los Angeles "Don’t Borrow Trouble" campaign
Fact Sheet
Purpose
"Don’t Borrow Trouble" is a two-pronged program that combines an extensive public education campaign with referral services to counseling and legal service agencies to help families avoid loan scams.
Background
Don’t Borrow Trouble was a program piloted in Boston by Boston Mayor Thomas M. Menino and the Massachusetts Community Banking Council. Freddie Mac is expanding the campaign to locations nationwide, including Los Angeles. The Los Angeles Housing Department has been the coordinating agency for the City.
Program Goals
- Reduce and ultimately eradicate predatory lending practices within Los Angeles.
- Educate borrowers about the dangers of predatory lending and provide them with helpful resources.
- Coordinate access to homebuyer assistance programs offered by initiative partners.
- Promote the importance of good financial management and how to avoid credit/debt problems.
- Promote the importance of buying homes that the consumer can afford, ultimately reducing high foreclosure loans.
Program Partners
Over 25 organizations have participated in designing the program to fit the needs of Los Angeles, including:
- ACORN Housing
- Bet Tzedek Legal Services
- California Association of Real Estate Brokers, Inc.
- California Reinvestment Committee
- Consumer Credit Counseling Services of Los Angeles
- Los Angeles City Attorney’s Office
- Los Angeles Department of Aging
- Los Angeles County Department of Consumer Affairs
- Los Angeles Housing Department
- Fair Housing Congress of Southern California
- Fair Housing Council of San Fernando Valley
- Fair Housing Council of San Gabriel Valley
- Fair Housing Foundation
- Home Loan Counseling Center
- U.S. Department of Housing and Urban Development
- Los Angeles Center for Law and Justice
- L.A. Trade Tech College
- Legal Aid Foundation of Los Angeles
- MultiCultural Alliance
- Neighborhood Assistance Corporation of America
- Neighborhood Housing Services – L.A.
- Public Counsel Law Center
- Strategic Action For a Just Economy
- San Fernando Valley Neighborhood Legal Services
- Welcome to America, Inc.
- West Angeles Community Development Corporation
- Westside Fair Housing Council
Service Delivery
- Los Angeles’ "Don’t Borrow Trouble" Campaign is using bilingual (English and Spanish) flyers, mailings, posters, and public service announcements (PSAs), to inform the public that a reliable source of information is available to answer questions if they are considering taking out a loan or to provide assistance if they have already taken out a loan. The main message in the advertising campaign combines a warning about loan scams with instructions to call the local hotline number.
- The LA hotline will request initial intake information and then refer the caller with the appropriate agency(ies) that can best help the caller. Calls may range from inquiries regarding home ownership counseling, to interpretation of loan contracts, to homeowners faced with foreclosure and needing legal aid. There is also information available on the internet that supplements the campaign. Local Los Angeles information is available at www.lacity.org/lahd/ and Freddie Mac is establishing www.dontborrowtrouble.com. The Web sites provide information concerning predatory lending practices, updates on the local efforts in Los Angeles and links to the Web sites of participating partners.