How Consumer Law Issues Impact New Immigrants

Having made the often-difficult journey to America in search of opportunity, America’s newest residents all too often find themselves easy prey to the consumer abuses that thrive in the low-income communities in which many of them live. 

Justice in the Marketplace

Marketplace decisions have as big an impact on a new immigrant’s life as does the size of her paycheck. 

These decisions include:

• Learning to navigate the banking system and avoiding high cost bank accounts, bounce loan fees and expensive check cashers
• Accessing affordable credit and avoiding unscrupulous high-rate lenders, payday lenders, refund anticipation lenders
• Finding and keeping affordable telephone and utility services
• Buying and insuring a car
• Purchasing a home
• Seeking financing for education

Fighting Consumer Scams

Unfortunately, limited fluency in English and unfamiliarity with the American marketplace makes many immigrants vulnerable to consumer abuses.  Also troubling is the fact that they suffer disproportionately when they fall victim to marketplace abuses because studies show that they are less likely to seek help for legal problems than are other low-income consumers.

Additional consumer abuses stem from and play upon immigrant fears about the fragility of their legal status.  Non-attorneyimmigration consultants take advantage of an individual’s desperation, inability to speak or read English, and unfamiliarity with the legal system.  Some immigration consultants falsely claim that they can expedite naturalization; many specialize in housing, bankruptcy, and other credit concerns that could result in victims losing their homes and/or forfeiting bankruptcy rights. 

It is critical for immigrant and consumer advocates to work together to help immigrants learn about their rights, to help them enforce these rights and fight for stronger marketplace protections.  NCLC seeks funding to form partnerships with groups interested in protecting the consumer rights of new immigrants. 

For more information contact NCLC’s Chi Chi Wu at (617) 542-8010.

Policy Analysis

Testimony before the House Subcommmittees on Oversight and Social Security Opposing Sharing Immigrant Taxpayer Information with Department of Homeland Security, February 15, 2006, PDF (72KB)

Background Information

• Consumer Education Brochures
• Useful Links: Immigration Related Sites