ACTION ALERT: Bills Harmful to Hoosier Consumers to Receive Hearings
CFPB Move to Gut Payday Consumer Protections Will Harm Hoosier Families
The Network has received word the Senate Insurance and Financial Institutions Committee will hold a hearing on SB 587 on Wednesday, February 13, and the Senate Commerce and Technology Committee will likely hold a hearing on SB 613 on Thursday, February 21.
The Network does not support either bill and strongly believes both would harm Hoosier consumers. When paired with the CFPB's recent decision to gut the agency’s own consumer protections against predatory payday lenders, we believe Hoosier consumers are in grave danger.
ACTION ALERT: Hearing on SB 104 on January 23
The Consumer Financial Protection Bureau (CFPB) moved to gut the agency’s own consumer protections against predatory payday lenders yesterday, leaving Hoosier families exposed to high interest rates of payday lenders. The Indiana Assets & Opportunity Network opposes this action and urges that the CFPB’s 2017 rule on predatory lending take effect as soon as possible.
“We were deeply disappointed to hear of the CFPB’s decision yesterday afternoon,” said Logan Charlesworth, Indiana Assets & Opportunity Network Manager. “But decisions like these from Washington remind us why passing legislation here in Indiana that will protect Hoosier families from falling into the predatory lending debt trap is so important.”
Looking Forward: The Network in the New Year
On Wednesday, January 23, we believe the Senate Insurance and Financial Institutions Committee will hold a hearing on SB 104, a bill that would cap small dollar, short term loans at 36 percent APR.As a valued member of the Indiana Assets and Opportunity Network, you understand just how vital this hearing is to our ongoing efforts to stop the debt trap in the Hoosier State.
Voice Your Support for a 36 Percent APR Cap on Small Dollar Loans in Indiana
The New Year is an opportunity to dream, reflecting on what has been and setting one’s sights on what could be. On an individual level, this may take the form of health, career, or financial goals. But we can and should think on a policy level, too. Where have we been, and what can and should the future hold?
Senate Introduces CRA Resolution to Overturn the CFPB's Federal Payday Rule
A large body of research demonstrates that high-cost loans create a long-term debt trap that drains consumers' bank accounts and causes significant financial harm, including delinquency and default, overdraft and non-sufficient funds fees, increased difficulty paying mortgages, rent, and other bills, loss of checking accounts and bankruptcy. Indiana currently has one of the highest bankruptcy rates in the country. A new report from the National Consumer Law Center found that in states that have implemented a rate cap, former payday borrowers feel they are better off without these loans.
"Rent-a-bank" arrangements could allow banks to make predatory loans
Late last year, a bipartisan group of lawmakers introduced a joint resolution under the Congressional Review Act to override the Consumer Financial Protection Bureau’s (CFPB) federal payday rule. Since its introduction, Rep. Hollingsworth [IN-09], Rep. Banks [IN-03], and Rep. Messer [IN-06] have co-sponsored the bill.
Payday lending battle heats up at Indiana Statehouse
In the Statehouse, the House narrowly passed HB 1319 to allow payday lenders to offer installment loans at up to 222 percent APR. This bill will be heard March 1st in the Senate Commerce and Technology Committee.
Tax Cuts & Jobs Act Passes the House and the Senate
For nearly everything we consume, we rely on regulatory agencies to tell us what's safe and what's not. These regulations serve our needs and interests as consumers. Yet the past weeks have been rife with attempts to chip away at consumer protections on both the federal- and state-level. This is the continuation of a worrisome trend to end safeguards for vulnerable consumers.
Turning the tax code "right-side up": the wealthiest shouldn't take home an outsized share
It's been a tumultuous couple of months for tax bill writers and constituents alike. As lawmakers hurriedly drafted legislation behind closed doors, many Americans were biting their nails at the predicted impact the bill would have on their livelihoods, including possible tax hikes over the life of the Senate’s bill and cuts to vital public benefits programs in both House and Senate versions of the bill.
Mandatory Arbitration Clauses and Consumer Impact
Those of us who support asset development for low-wealth individuals and communities know that tax reform is needed. Each year, tax incentives support wealth development through homeownership, higher education, and retirement savings – but often, the bulk of these incentives go to those who need them least. This drives wealth inequality. For shared, broader prosperity, we need to turn the tax code right-side up.
The long road to racial wealth equity
You have probably signed one. Not too long ago, I signed one while securing a car loan. "I don't want to sign this," I said, when I saw the page titled "arbitration clause" laid down in front of me. "Is this negotiable?" "No," the loan officer responded, before assuring me that it would just make any disputes quicker and easier to resolve.
Not Your Average Shark
Twelve times. That's how much higher the wealth of white families is compared to black families. Another startling stat – at the current rate of progress, it will take until 2097 for Latinx families to reach wealth parity with white families.
The Great American Health Care Debate Moves to the Senate
This week, the Discovery Channel hosts “shark week.” As the channel educates viewers on the feeding habits of Great Whites and Hammerheads, anti-payday lending advocates will be using this opportunity to highlight the concept of loan sharking. You can follow or join the conversation using the hashtag #sharkweek and #stopthedebttrap on Twitter.
Financial CHOICE Act: Lawmakers Quick to Forget the Lessons of the Great Recession
After a number of closed-door meetings, Senate Majority Leader Mitch McConnell just released a discussion draft of the American Health Care Bill.
There are a number of reasons to be concerned.
As Indiana Congressional Session Ends, Our Eyes Turn towards Washington D.C.
Earlier this month, Prosperity Indiana and the Indiana Institute for Working Families staff met outside the American History Museum on the National Mall in Washington, D.C. to prepare for a whirlwind round of visits to our lawmakers on Capitol Hill. On our agenda: ensure that lawmakers considered the perspectives of working Hoosiers and the agencies that stand alongside them each day, helping to make financial well-being a reality.
Use Evaluations to Preserve and Build on the Success of IDA Programs
Now that our state lawmakers have returned home and will not return until January 2018, our eyes turn to Washington, D.C. where members of the Indiana congressional delegation will help decide the fate of a number of consumer protections.
National Payday Rule Could Save Hoosiers Millions, But Advocates Say Rule Still Needs Work, Strengthening
A home. A degree or certification. The start-up costs for a small business. For families living paycheck to paycheck, these kinds of high-priced assets can feel completely unattainable, yet research suggests that these essential resources serve as buffers from economic volatility and pathways to the middle class. How do we help families secure them? For decades, matched savings accounts like Individual Development Accounts (IDAs) have been helping families make the acquisition of these assets a reality.
2016 Indiana General Assembly Session Review
Today, the Consumer Financial Protection Bureau (CFPB) unveiled a proposal for a new national rule on payday lending that has the potential to save Indiana residents millions in fees if changes are made before the rule is finalized, said Kelsey Clayton, Manager of the Indiana Assets & Opportunity Network.
Indiana's State Earned Income Tax Credit Continues to Build Appreciation
The Indiana A&O Network policy team worked on three pieces of legislation this session. The first, a proposal to eliminate asset limits in the Supplemental Nutrition Assistance Program (SNAP) was introduced by Senator Vaneta Becker as Senate Bill 377. Several members of The Network and the broader human services community worked in support of this bill, including Indiana Association for Community Economic Development (IACED), Indiana Institute for Working Families (IIWF), representing Indiana Community Action Association (INCAA), Indiana Association of United Ways (IAUW), and Feeding Indiana's Hungry. The unanimous bill passed its first hurdle, the Senate Family and Children's Affairs Committee, but unfortunately moved no further. It was recommitted to the Senate Appropriations Committee where it was not given a hearing.
The second item the team worked on included reforms and an expansion of Indiana's Individual Development Account (IDA) Program. Senate Bill 325, authored by Senator Mark Messmer, expands program eligibility to 200% of the Federal Poverty Guidelines and allows participants to use savings for owner occupied rehab, as well as vehicle purchase. Again, several advocates worked on this issue, including IACED, IIWF, INCAA, IAUW, as well as a local community action agency Tri-Cap, which came to the hearing to testify and share client testimonials. SB 325 enjoyed unanimous support all the way through the legislative process and has been signed by the Governor.
Last fall, the Indiana General Assembly’s Interim Study Committee on Fiscal Policy discussed the Legislative Services Agency’s most recent review (herein referred to as the Tax Review) of Indiana’s state tax incentives, including the state’s Earned Income Tax Credit. On the whole, the findings of this review were very favorable to the state’s refundable Earned Income Tax Credit, declaring that it did in fact make an (albeit in some cases small) impact on both reducing poverty and incentivizing work. But there are two steps Indiana can take to simplify the state’s EITC and make it work better for more Hoosiers.
This comes as no surprise, as the Indiana Institute for Working Families has testified before the General Assembly and its study committees many times; the Federal Earned Income Tax Credit is our nation’s most successful anti-poverty program, and the State EITC, although much smaller, is part of the EITC’s success story.