Freeing a Dedicated Caregiver From a Predatory Loan

“When I was so down financially, it was you who really helped me, and I am really, really, really grateful for all the help that you have extended to me.” 

RAUL

From the first moment EJF talked with Raul about his background and loan application, it was clear that he is a man who cares deeply about others.

After emigrating from the Philippines to the United States in 2014, Raul found work as a caregiver at a small assisted living facility in Southern California that serves the elderly and people with mental disabilities.

His salary is too modest to enable him to rent his own apartment, but finding a place to live hasn’t been a problem because the facility allows its caregivers to live on the premises and even provides meals for them. He continued to work there throughout the pandemic and has no desire to leave. “I love my job,” he says. “I love helping people.”

Raul comes from a family of 16 and has been committed to helping his family members when they are in need. Since coming to the U.S., he helped care for his elderly mother and a sister who had leukemia and eventually passed away. He also provided financial assistance to other siblings who were struggling after they lost their jobs due to the pandemic. And when his daughter decided to relocate to the U.S., he helped pay for the processing fees.

In time, Raul was facing financial struggles of his own and needed money. Believing he had no other choice, he turned to a predatory lender who was more than happy to give him a loan. The problem was that the loan had an interest rate of 36%.

Raul was able to make his loan payments on time, but before he had even paid off the loan, the lender encouraged him to refinance the loan, which included hidden fees that increased the APR above 36%. He applied for loans from other lenders offering lower rates but was always declined because of his limited credit history in the U.S.

Fortunately, Raul kept searching for a more affordable loan and eventually discovered the Economic Justice Fund.

When he applied for an EJF personal loan, we saw he had a limited credit history and only a few credit accounts. But we also noticed he had a strong credit score history of on-time payments. After speaking with Raul, we were impressed by his character and dedication to serving others. So we decided to provide a small-dollar loan to enable him to pay off one predatory loan and have an affordable, low-interest-rate loan from EJF.