A Drain on Hoosier Families & Communities
In 2002, the Indiana General Assembly granted payday lenders an exemption to Indiana's interest rate cap of 36 percent and criminal loansharking limit of 72% APR. Less than two decades later, payday lenders have established a significant footprint across our state. Financial Drain: Payday Lenders Extract Millions from Hoosier Communities documents the scope and impact of these lenders on families and communities, finding:
Quick Facts About Payday Lending
Payday loans trap borrowers in a cycle of high-cost debt. Learn the facts:
The typical borrower is a renter earning less than $40,000 per year.
Polling Shows Hoosiers Support Reform
Bellwether Research & Consulting asked 600 Hoosiers about payday lending:
Nearly 90% of Hoosier voters support a 36% APR cap, even after hearing pro-industry arguments against the proposal.
Three out of four voters would oppose a new payday loan store opening in their neighborhood.
More than one third of polling respondents had taken out or knew someone who had taken out a payday loan.; these respondents expressed similarly high levels of support for reform.
A large & diverse coalition also supports payday lending reform in Indiana.
Sign this letter to the Indiana General Assembly calling for a 36% APR cap.
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.
Resource | Indiana Institute for Working Families
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