We’ve talked until we are blue in the face about the awful consequence of predatory lending, how they are aimed directly at the working poor, or anyone with any income at all. They target those on disability or folks on Social Security—any trickle of money—if its there, they plan to get it.
Predatory lenders influence key legislators here with trips and gifts (yes, Indiana legislators). Year after year, these key Indiana legislators refuse to back any effort to bring down rates that have reached 391% allowing these companies to take millions of dollars in profits out of our most vulnerable citizen’s pockets every year.
The predatory loan industry has high-priced lobbyists, and our legislators bend to their will. A report that came out in 2019 shows that Indiana has among the highest rate caps in the Midwest. (Indiana caps a $500 six month loan at 89%.) Desperate people do desperate things, and yes, they sign up for these loans.
According to the Deputy Director of the National Consumer Law Center, “Indiana has failed to assist struggling families by decreasing rates on consumer loans and instead have welcomed predatory lenders by increasing already excessive fees.”
But now, there are actually lending alternatives! Community Loan Centers provide affordable small-dollar loans online through participating employers, but another, potentially more accessible alternative is NorthPark Community Credit Union. Headed by Carma Parrish, NorthPark provides financial services in low-income communities, serving people in Indiana who lack access to financing. You can apply for a loan online—NorthPark is totally virtual, just click here.
Says Parrish, “It’s my personal goal to drive payday loan companies out of business in Indiana.” If that’s not breaking bad, I don’t know what is.
Nancy
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