WASHINGTON, D.C. - U.S. Representative G.K. Butterfield (D-NC) called for an end to the practice of profiting on poverty and discussed the need for enforcement against unscrupulous predatory lending practices, payday lending and automobile title loans during the weekly CBC "Message to America" radio address. Representative Butterfield delivered the following remarks:

"Hello, this is Congressman G. K. Butterfield from North Carolina's First District speaking to you on behalf of the Congressional Black Caucus.

"Last week, America voted to move our country in a new direction. Far too many Americans are being left behind.

"Corporate profits are reaching record highs, but tens of millions of Americans find themselves without decent paying jobs or basic health care. Budget cuts for low-income housing, education, Medicaid, nutrition programs and a slew of effective anti-poverty initiatives are also harming those most vulnerable in our society.

"Even worse, current policies allow unscrupulous companies to prey on the poor. Substandard minimum wage, predatory credit and lending practices are providing unchecked opportunities for these companies to build their fortunes on poverty.

"For example, it's estimated that banks collect more than $10 billion in fees for overdraft loans annually and much of that is collected from low-income account holders. It's a system of fees and short-term loans that translate into annual interest rates which too often reach well over one thousand percent. And, many consumers are often enrolled in these high-cost programs without consent.

"It's also estimated that abusive home lending practices are costing U.S. consumers $9.1 billion annually. Other practices include everything from high-cost lending to rent-to-own stores that charge two to three times the retail cost of appliances, electronics and furniture. Other dubious practices include tax refund anticipation loans, payday lending and automobile title loans.

"Regrettably, there are huge numbers of low-income Americans ripe for unscrupulous companies to target. According to the U.S. Census Bureau, more than 37 million Americans live in poverty, including 13 million children and nearly 25 percent of all African Americans.

"America is the richest and most powerful nation on earth, but nearly a fifth of its children go to bed hungry at night because their parents, many of whom are working full time at minimum wage, still can't make ends meet. And, when the ends fail to meet near the end of the month, there is no shortage of people willing to prey and profit on this desperate population.

"There are state regulations and federal bills aimed at addressing some of these problems, but many of these issues can and should be resolved with stricter enforcement of existing federal laws.

"In addition to the needed enforcement, there must also be increased support for financial literacy, credit counseling, community development and savings programs for low-income people.

"Anything short of this is a failure of our government to live up to its responsibility to protect our most vulnerable citizens. And, those who shrink from their responsibility also become willing and unconscionable partners in the practice of profiting on poverty.

"As Congress moves forward under new leadership, it must move forward to end the practice of profiting on poverty.

"This is Congressman G. K. Butterfield for the Congressional Black Caucus. God bless."