In the News: Effort to legalize 'loan shark' rates could bring a new breed of lender to Indiana
In the News: Will Indiana payday loan rates remain above state's 'loan shark' threshold?
The Indiana Senate is poised to vote on a measure Tuesday that would allow payday and subprime lenders to charge interest rates on small loans at levels currently classified as felony loan sharking.
The payday loan industry has pushed for similar legislation for the past three years, only to be rebuffed amid concerns from social service organizations and others who see such high-interest rates as predatory.
The 2019 Prosperity Now Scorecard Is Available Now
In the wake of the SB 104 committee hearing on January 23, 2019, the Indianapolis Star wrote an article discussing both sides of the payday loan argument, featuring interviews with A&O Steering Committee member Erin Macey, Senior Policy Analyst at the Indiana Institute for Working Families, and other friends of the Network.
Meet the Breakfast Presenters
Combining robust data at the national and state levels, an interactive map and relevant policy information, the 2019 Prosperity Now Scorecard is a powerful tool for revealing the financial lives of Americans beyond the headlines.
Financial Literacy 101: College Savings, Loans, and More
During the Indiana Assets & Opportunity Network Breakfast on January 30, attendees will be the first to learn of new changes that are coming to the Network. They will also have a chance to hear from multiple A&O Steering Committee members. Meet the breakfast presenters by reading their bios below:
Consumer financial protection bureau Expected to Revise Existing Payday Rule
Welcome to the start of a new semester…one ripe with opportunity, learning, social awkwardness - if you’re anything like I was in college – and, of course, all of the costs associated with it.
If you’re like a lot of people in the United States, you’ve probably thought a lot about having to pay for you, your child, your grandchild, and/or anyone else close to you, to go to school. I’ll admit that it’s a pretty daunting thing to deal with, especially when you look at how it will affect your financial life. While I’m not going to attempt to write something that will make all of your worries go away, I wanted to take this opportunity to talk about various ways you can pay for school and mention a few things you should not do.
Despite Being Born Into Similar Finances, Black Children Earn Less Than White Counterparts
The Consumer Financial Protection Bureau is expected to gut the existing payday rule by removing the Ability-to-Repay provision, which required short term, small dollar lenders to take a borrower’s ability to repay a loan into account before issuing it. According to Prosperity Now, this revision would be a huge blow to advocacy efforts to stop the debt trap.
Asset Building Opportunities Lag for 15 Million Single Women
The Indianapolis Business Journal’s analysis of the latest U.S. Census Bureau data that tracked children born from 1978 - 1983 found that even when born into households of similar income levels, black children earn considerably less as adults than their white counterparts.
How to Develop Work Based Learning Experiences
According to a new brief from the Asset Funders Network, women age 45 - 65 represent the first generation to benefit from expanded access to higher education, credit, and other asset building opportunities. The opportunities stem from policy changes that came about as part of the civil rights and women’s movements in the 1960s and 1970s.
However, although record-breaking numbers of women are graduating from college and starting businesses, 15 million single women - namely Black and Latin women - have experienced substantial wealth loss in the past 20 years.
United States Senate Committee on Banking, Housing, and Urban Affairs Releases Minority Staff Report Grading CFPB
With a projected million middle skills jobs opening up in Indiana by 2024, skills-based/work-based learning is changing the way educators and employers are training, recruiting, and retaining talent to fill future workforce needs.
Work-based learning (WBL) offers a unique opportunity for individuals from diverse backgrounds to develop first-hand knowledge and skills beyond the classroom environment through industry exposure and on the job training. It provides employers with a platform to align their training needs with the actual skills necessary to be successful on the job.
Here are a few guidelines to use when building successful work based learning experiences:
New Joint Study Reveals Employees are Financially Stressed, Distracted in the Office
U.S. Senator Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – released ‘Pushing the Envelope: The Consumer Financial Protection Bureau Under the Trump Administration’ report to Congress.
ANALYSIS: The CFPB Announces Plans to End Supervisory Examinations for Military Lending Act Violations
According to a joint report from the Asset Funders Network (AFN) and the University of Wisconsin Center for Financial Security, more than half of all employees in the United States say they are financially stressed, with nearly one-in-three employees admitting to being distracted in the office due to personal finance issues.
National Consumer Law Center Report Outlines What Happens After Payday Lenders are Restricted
Since 2012, the CFPB has been responsible for supervisory examinations of banks, lenders, and other financial institutions to ensure MLA compliance. However, the CFPB has chosen to relinquish its role as supervisor of MLA provisions.
ACTION ALERT: Speak Up Today to Defend CRA
Consumers in states where predatory lenders are expelled report being relieved and many adapt by employing a variety of safer financial strategies, including budgeting and borrowing from family. However, even once predatory lenders are driven out, payday lenders are finding legal loopholes – such as overdraft loans, installment loans, and auto title loans – that enable them to prey upon the most vulnerable in the community again.
Supplemental Poverty Measure (SPM) Report Details Prevalence of Poverty, Measurement Discrepancies
We are counting on you to lift your voice to push back against potentially harmful changes to the Community Reinvestment Act (CRA). CRA is a landmark civil rights law to end discrimination that was once common in America’s banking and housing markets.
While some strides have been made, the lack of investment in low-income areas and communities of color remains a persistent concern. Even still, regulators have proposed ideas that may substantially weaken the law via an Advanced Notice of Proposed Rulemaking (ANPR). We need you to speak up to ensure CRA is strengthened, not weakened.
We only have until Nov. 19 to comment on these ideas and urge regulators to consider CRA reforms that more effectively hold banks accountable for equitable investments and help them more flexibly respond to community needs.
New Report Reveals Concerning Data on Increasing Number of ALICE Households
The United States Census Bureau recently unveiled its eighth Supplemental Poverty Measure (SPM) report, detailing the prevalence of poverty in our society and estimating the differences between the official measure of poverty and the poverty measures that take account of non-cash benefits and nondiscretionary expenses.
Helping Families Thrive Through Financial Coaching
ALICE is an acronym for Asset Limited, Income Constrained, Employed. These households have incomes above the Federal Poverty Level but struggle to afford basic household necessities. In the words of Indiana United Ways Board Chair, Ron Turpin, “ALICE gets up each day to go to work, but still faces financial barriers – working jobs that offer no healthcare, vacation, or paid sick leave. These workers hold jobs that are critical to the success and vitality of our communities, yet they often struggle to afford food, rent, child care, and transportation, and have little left over for saving and investing.”
Community Loan Centers: Informational Webinar with Matt Hull
For the past decade, the Local Initiatives Support Corporation (LISC), a national community development organization with an office in Indianapolis, has cultivated an asset-building model called the Financial Opportunity Center (FOC) that bundles one-on-one financial coaching and employment services to help low-wealth families move closer to financial independence. FOC services are delivered by highly trained coaches in familiar settings – typically organizations with deep roots in the neighborhoods they serve. Despite good results from this one-on-one approach and people’s stated desired to continue working with a coach, it is often difficult to retain them in a long-term coaching relationship. To that end, LISC has worked with the Common Cents Lab at Duke’s University’s Center for Advanced Hindsight to test an approach to improved coaching retention based on the principles of behavioral economics.
Hoosiers Not Saving Enough for Retirement
Community Loan Centers (CLC) exist to provide an alternative, fairly-priced loan program to low-income families. On Wednesday, August 29, the Network hosted a free webinar featuring special guest Matt Hull, executive director of the Texas Association of Community Development Corporations, examining how CLCs are helping families in 16 markets across seven states. Click below to view the full webinar.
MEDIA: Network Applauds Senate Effort to Protect Servicemembers
Are you saving enough for retirement? Many of us believe we are but, unfortunately, statistics show that’s just not the case here in Indiana.
According to a National Financial Capability Study, research participants were asked five questions covering aspects of economics and finance encountered in everyday life. Only 35 percent of Hoosiers (and 37 percent of U.S. adults) could correctly answer 4 or 5 out of 5.
Today, Senator Donnelly and 48 other senators sent a letter to acting Consumer Financial Protection Bureau (CFPB) Director Mick Mulvaney, calling on the bureau to continue supervision of lending made to active duty servicemembers and their families to ensure that lenders are complying with the Military Lending Act (MLA).