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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.


A LARGE & DIVERSE COALITION supports payday lending reform in Indiana. POLLING RESULTS show that nearly nine in ten Hoosiers supports a 36% cap on payday loans.


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.



#REJECT SB 613 - A Massive Expansion of Payday & Subprime Lending

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

Resources Related to Payday and Subprime Lending


Payday Lending in Indiana

Policy Brief | Indiana Institute for Working Families


Why 36 is the Fix for Small Loans in Indiana

Blog Post | Indiana Institute for Working Families


Report on Predatory Lending Practices Directed at Members of the Armed Forces and Their Dependents

Report to Congress | U.S. Department of Defense


Misaligned Incentives: Why High-Rate Installment Lenders Want Borrowers Who Will Default

Report | National Consumer Law Center


Payday Loans and Deposit Advance Products

White Paper | Consumer Financial Protection Bureau


Payday Lending in America: Who Borrows, Where They Borrow, and Why?

Report | Pew Charitable Trusts