The Trump Administration’s proposed tax plan would shortchange working families in Indiana. Andrew Bradley, Senior Policy Analyst, Indiana Institute for Working Families, writes that “added together, the three low- and middle-earning quintiles (making up 60% of Indiana’s population) would only get 11.7% percent of the planned cuts, while the top 1% alone would take home 46.1% of the state’s share of the cuts.”
A majority in the U.S. House of Representatives once again sided with America’s payday lenders, voting to strip the Consumer Financial Protection Bureau—American consumers’ watchdog—of the authority to regulate this industry. The vote came Thurs., Sept. 14 during the debate over the Financial Services and General Government bill, which funds some basic functions of the federal government, including the Treasury Department.
Beyond the economic contributions Dreamers make to the U.S. economy and the fiscal irresponsibility of repealing DACA—it poses an enormous strain on taxpayers—the repeal of DACA should not be analyzed exclusively through an economic framework. Dreamers—many of whom have never known a home other than the U.S.—have been denied the freedom to live in the U.S. without fear based on their place of birth and skin color.
The Consumer Financial Protection Bureau (CFPB), a consumer watchdog group, plans to release a proposal that would regulate two categories of loans — short term loans, defined as having a repayment plan of less than 45 days and long term loans, defined as having a repayment plan of more than 45 days. However, long term loans would only be regulated if they have an annual percentage rate (APR) greater than 36 percent or are repaid directly from a borrower’s checking account, wages, or secured by the borrower’s vehicle. The proposal was published as a draft last year with organizations like the Center for Responsible Lending supporting some of its measures and criticizing others. The final proposal may be released as early as mid-September.
National Public Radio (NPR) recently published a segment titled “Your ZIP Code Might Be As Important To Your Health As Your Genetic Code.” The segment details Kaiser Permanente, a nationwide care consortium’s, Portland, Oregon hospital. When a patient approaches the receptionist’s desk, she is asked to fill out a “life situation form,” which inventories the patient’s non-medical stressors. The questions, which gather information about housing, finances, transportation, and food access, provide Kaiser Permanente a richer picture of the factors that influence their patients’ health so that they can more effectively treat them.
The life situation form is a mechanism for determining the social factors that influence a person’s health and, for years, public health professionals have championed studying and addressing these factors, designated the Social Determinants of Health.
Tuesday, July 25 marked the release of the 2017 Prosperity Now Scorecard. The Scorecard, which ranks all 50 states and the District of Columbia along five indicators of financial security, also reports on the policies that enable or constrain states' capacity to perform well along the measures. In 2017, Indiana averaged an outcome rank of 32, down from 30 in the 2016 Scorecard. Data from the Scorecard reveals that economic gains accrued since the recession disproportionately benefit wealthy families and that income and wealth inequality is especially pronounced between white households and households of color.
Today marks the sixth birthday of the Consumer Financial Protection Bureau (CFPB), a consumer watchdog group formed in response to the 2008 financial crisis. The brainchild of Senator Elizabeth Warren (D-Mass.), the CFPB advocates for consumer protections against usury financial products, as well as enabling consumers’ capacity to advocate for retribution against these practices.Pam Banks, senior staff attorney with Consumers Union, the policy and mobilization arm of Consumer Reports, believes that weakening the CFPB would have devastating effects for consumers.
My name is Allegra Maldonado and I am joining Prosperity Indiana as the Indiana Assets and Opportunity Network (Indiana A&O Network) AmeriCorps VISTA. During my year of service I’ll work with Kelsey, the Indiana A&O Network’s manager, to further our goal to increase asset acquisition for low-wealth Hoosiers and strengthen Indiana’s local economies.
The Indiana Assets & Opportunity Network (Indiana A&O Network), a statewide asset-building coalition, is planning four lunch-n-learns across the state to discuss concepts from What It's Worth, a book about strengthening the financial futures of families.
The Indiana A&O Network has commissioned a videographer and animator to produce a 20 minute video to show at the beginning of the events to encourage open and honest discussions about financial instability and local solutions to economic mobility barriers for families in Indiana.
Today, 7 out of 9 members of the Indiana House delegation voted to undo consumer protections put in place after the financial crisis to guard against future economic crashes and bailouts. The legislation in question, the so-called Financial CHOICE Act, passed the U.S. House of Representatives by a vote of 233-186.
“We just don’t understand it,” said Kelsey Clayton of Indiana Assets & Opportunity Network. “Elected representatives are supposed to stand up for Indiana communities but instead they decided to support legislation that explicitly protects payday lenders, cripples the government watchdog, and allows banks to go back to doing the same kinds of deals that forced us to bail them out."
June 2, 2017 – One year ago today, the Consumer Financial Protection Bureau (CFPB) issued a draft rule aimed at reining in the worst abuses of payday, car title and other high-cost debt trap lending schemes. While these protections are sorely needed in Indiana, where such loans carry APRs reaching 391 percent and many borrowers become trapped in a cycle of debt, Congress is actively working to protect payday lenders.
Specifically, the U.S. House of Representatives will soon vote on the so-called Financial CHOICE Act, which would essentially undo all of the consumer protections put in place after the Great Recession and bank bailout.
Education level has long been closely associated with economic outcomes and a college degree in particular is seen as an indiscriminate vehicle of economic mobility. While the U.S. Census Bureau finds that a young adult working full time with a high school diploma makes more than an equivalent young adult working full time without a high school diploma ($30,000 a year vs. $25,000 a year respectively), a young adult with a bachelor's degree will, on average, make $49,900 a year. This dramatic wage difference means that a typical American with a bachelor's degree will make 66 percent more in lifetime earnings than the typical American with only a high school diploma.
In the United States 650,000 inmates are released from prison every year-nearly 68 percent of them are rearrested within three years of release. Although studies have largely found that employment has a significant effect in reducing the recidivism rate, or the rate an ex-offender relapses into criminal behavior, low reading and technological literacy levels and the stigma of being an ex-offender in the eyes of potential employers, largely prevents ex-offenders from getting a job. Initiatives, such as Ban the Box which encourage public and private employers to remove the check box from their hiring applications asking if applicants have a criminal record, do help destigmatize an ex-offender’s criminal history. Unfortunately many states do not widely acknowledge these initiatives including Indiana, which recently passed SB 312: a bill that prevents municipalities from enacting Ban the Box ordinances. Fazed out of the job market, ex-offenders are often left with no other choice but to return to crime to provide for themselves and their families.
Indianapolis, IN – Thanks to complaints from 43,000 consumers around the country - including over 450 from Indiana consumers - the Consumer Financial Protection Bureau (CFPB) investigated and shut down a nationwide credit score scam that tricked Americans out of their hard-earned dollars by marketing and selling credit scores that they claimed were used by lenders to make credit decisions. In truth, lenders did not use those credit scores when deciding whether to make loans. The CFPB also hit the company with a $3 million civil penalty.
Indiana saw another close call on predatory lending in the General Assembly, but may face a challenge in Congress on loosening limits on prepaid cards. The payday lending industry attempted a late-in-the-game adjustment to Indiana’s uniform consumer credit code last Monday, March 20th. The language they proposed would have allowed lenders to charge a .395 percent daily “customary fee” to offset the cost of origination, ability-to-repay determinations, and so on. This could have been layered onto the 25 percent interest rate allowed under the statute, bringing the total possible APR up to 169 percent. This proposal was also unusual in that it was not within the statute governing small loans (a.k.a. payday loans), but instead was in the section of code that applied to all forms of open- and closed-ended installment lending. Fortunately, the amendment was not offered thanks to opposition from consumer advocates and members of the House committee in which it would have been heard.
A recent webinar hosted by the Asset Funders Network (AFN) entitled The Health and Wealth Connection: Opportunities for Investment Across the Life Course, explored several variables that when combined, create the social determinants of health. These variables are socioeconomic status, education, physical environment, employment, social support networks, and access to healthcare, which all factor into a community’s overall health. The webinar described this equation simply as “health happens where we live, learn, work, and play.”
Although health is commonly perceived to be confined within doctors’ offices and hospitals, the social determinants of health indicate that health happens everywhere. In fact, access to healthcare is the last step, and least critical, in determining the overall health of a community.
This month at the Indiana Statehouse, Assets & Opportunity Network partners helped spearhead the defeat of SB 245, a bill to authorize new, longer term predatory loans with high interest rates. The bill would have allowed a borrower to take out up to a $2,500 loan at 240 percent APR and repayment terms of 24 months. The bill was amended to a cap of 18 months, $1,750, and 216 percent APR. Nineteen opponents testified against the bill, representing credit counselors, former payday borrowers, non-profit organizations, religious leaders, a former payday loan company employee, veterans’ groups, and more. The bill was defeated in a 4-5 vote. Please help us thank Senators Bray, Melton, Mrvan, Ruckelshaus, and Walker for their key votes to help protect Indiana families.
On February 16th, hundreds of Indiana residents joined demonstrators across the country in a national strike and participated in a "Day Without Immigrants" in protest against President Trump's recent efforts to crack down on illegal immigration. Demonstrators opted to stay home from school, work, and even temporarily closed their businesses for the day in order to show unity with their friends, family members, coworkers, and employees who immigrated to the United States. By not participating in their regular routines, demonstrators hoped to show how immigrants directly contribute towards the lifestyles of American consumers through the goods they produce, services they provide, and jobs they create.
When Republicans decidedly won all three branches of our federal government on Election Day, many of us were left contemplating what will become of the progress we have made in the last eight years, and where our efforts should be applied going into the future. To east anxiety and begin strategizing, the Indiana Assets & Opportunity Network hosted a conference call on January 27th in order to discus the changing political landscape which may affect our collective mission to increase asset acquisition for low-wealth Hoosiers.
The Indiana General Assembly is back in action. Two bills that would expand access to the Supplemental Nutrition Assistance Program (SNAP) received hearings in the Senate Committee on Family and Children’s Services on Monday, January 23rd. The first, SB 9, would eliminate the lifetime ineligibility of individuals who have served time for a felony drug conviction. It passed out of the committee 8-1.
The second bill, SB 154, would remove one of the two tests of eligibility for SNAP access – an asset test that requires households to have less than $2250 in countable resources to be eligible. Kathleen Lara, Policy Director of Prosperity Indiana, testified in support of the bill, noting that one of the unintended consequences of the asset test is that families receiving or considering receiving benefits might choose not to participate in mainstream financial products, like checking and savings accounts. Removal of the asset test in other states has resulted in increased bank account ownership among SNAP households and increases in average savings amounts in those accounts.