Payday and Subprime Lending
In 2002, the Indiana General Assembly gave payday lenders a narrow exemption to our state's criminal loansharking cap of 72% APR. There are now close to 300 payday loan storefronts across Indiana draining over $60 million in fees annually for short-term loans that average less than $350. The typical payday loan borrower reborrows eight to ten times, paying more in fees than the amount originally borrowed. Many experience a cascade of negative consequences, include overdrafts, defaults, involuntary bank account closure, eviction, and more.
Ready to help us #stopthedebttrap?
Sign our coalition letter calling for a 36% APR cap on payday loans.
Share a story about how high-cost lending has affected you or someone you know.
Call or write your lawmakers and let them know you want to see reform.
What was Senate Bill 613?
SB 613 proposed radical changes to Indiana's consumer lending laws. It would have authorized multiple new loan products that would have drown Hoosiers in unaffordable debt. It would have drained more resources from families and neighborhoods all across our state, landing many more borrowers in financial distress.
UPDATE: While SB 613 narrowly passed the Seante, it was not called for a vote in the House. Thank you to all who made their voices heard!
IIWF's blog on SB 613 with preliminary analysis
NCLC/CRL analysis of SB 613
Indiana Department of Financial Institution's analysis of SB 613
Summary of SB 613 as amended in House Financial Institutions on April 9th.
Press release on the March 2019 #Reject613 press conference
Media coverage of SB 613
Indianapolis City-County Council Resolution Opposing SB 613
Hamilton County Board of Commissioners Resolution Opposing SB 613
Bloomington City Council Resolution Opposing SB 613
Policy Brief | Indiana Institute for Working Families
Blog Post | Indiana Institute for Working Families
Report to Congress | U.S. Department of Defense
Report | National Consumer Law Center
White Paper | Consumer Financial Protection Bureau
Report | Pew Charitable Trusts