There's No Pride in Prejudice: Eliminating Barriers to Full Economic Inclusion... (EventID=114224)

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Connect with the House Financial Services Committee Get the latest news: https://financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/HouseFinancialCmte Follow us on Twitter: https://twitter.com/FSCDems ___________________________________ On Tuesday, November 09, 2021, at 12:00 p.m. (ET) Diversity and Inclusion Subcommittee Chairwoman Beatty and Ranking Member Wagner will host a virtual hearing entitled, “There's No Pride in Prejudice: Eliminating Barriers to Full Economic Inclusion for the LGBTQ+ Community." - - - - - - - - Witnesses for this one-panel hearing will be: • Mr. David Johns, Executive Director, National Black Justice Coalition • Mx. Spencer Watson, President and Executive Director, Center for LGBTQ Economic Advancement and Research • Ms. Tanya Asapansa-Johnson Walker, Co-founder New York Transgender Advocacy Group and Transgender Women's Support Group Facilitator, SAGE • Mr. Todd Sears, Founder & CEO, Out Leadership, LLC • Republican Witness, TBD Overview Despite some progress in recent years, individuals in the lesbian, gay, bisexual, transgender, queer and broader (LGBTQ+) community still face barriers to employment, housing, and other financial services. In June 2020, the United States Supreme Court issued a decision that extended protections against firing based on sexual orientation or gender identity, paving the way for federal agencies to do more to protect the LGBTQ+ community. A study by the National Academy of Sciences found that same-sex couples were 73.12% more likely to be denied a loan than different-sex coapplicants with similar characteristics, a pattern that persisted over the time period covered, and paid higher fees and interest (2 to 20 basis points more, which is equal to $8.6 million to $86 million nationwide every year). Additionally, many members of the LGBTQ+ community report that discrimination negatively affects their work environment, resulting in lower-income and fewer advancement opportunities for LGBTQ+ individuals than some other groups in the workforce. Research has also shown that LGBTQ+ individuals are more likely to experience homelessness compared to cisgender straight individuals. A study published by the Williams Institute in 2020 reported that 17% of LGB individuals experienced homelessness in their lifetime compared to only 6% of cisgender straight individuals. This hearing will examine solutions for removing barriers for LGBTQ+ individuals to experience full economic inclusion, including accessing financial services, safe and stable housing, and best practices for creating a more inclusive work environment, especially in the financial services industry. Accessing Financial Services The LGBTQ+ community experiences continued challenges when accessing financial services particularly when opening a bank account and staying banked. According to a 2015 survey, 21% of LGBT people are “unbanked,” meaning they don’t have at least one basic bank product like a checking or savings account. When combined with the higher rates of poverty and unemployment experienced within the LGBTQ+ community, unbanked LGBTQ+ consumers are more likely than their non-LGBT peers to be exposed to predatory products like payday loans, with annual interest rates as high as 391%. Absent access to more affordable, mainstream banking services, LGBTQ+ consumers increasingly rely on other high-cost products like check cashing and prepaid cards. Being unbanked is not the only reason LGBT consumers are exposed to predatory lending, as LGBT borrowers in the U.S. also experience “widespread credit discrimination” when trying to use mainstream financial institutions. LGBT people “frequently report being denied a loan or line of credit based on their sexual orientation, gender identity, or gender expression,” even when qualified. Nearly 1-in-3 (32%) LGBTQ+ student borrowers reported discrimination from a financial aid advisor or professional in 2018. Recently, CFPB determined that discriminating against LGBTQ+ applicants is illegal under the Equal Credit Opportunity Act and cited the 2020 supreme court ruling that expanded workplace protections to gay and transgender people. Misgendering and deadnaming are endemic in the financial services industry, in credit reporting, and during customer service interactions. One transgender woman in Seattle had her bank account frozen because the bank’s phone system recognized her voice as a “man.” This kind of discrimination alienates and shuts LGBTQ+ people out of financial institutions, further pushing them toward predatory products that drain paychecks and trap people in cycles of inescapable debt. Moreover, while the credit reporting system frequently accommodates changes to a cis-gender consumer’s last name –as a result of a marriage or divorce— transgender consumers who undergo a full name change have more difficulty... Hearing page: https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=408304