Wednesday, February 15, 2017
ACTION ALERT
Tell Your Lawmakers Charging Low-Income Borrowers 200% APR is Not OK
SB 245 will be heard Thursday, February 16th at 10am in Room 130
The Senate Insurance and Financial Institutions Committee will meet tomorrow to decide the fate of SB 245, a bill that would allow payday lenders to offer 2-year installment loans of up to $2500 at 240% APR. Under the original bill, a family making just over $30,000 a year could take out the full amount, paying over $9500 IN INTEREST over two years.
We understand that lawmakers are working on an amendment to bring the loan amount down to $1750 and the APR to 216%. This is still not acceptable.
It is almost unnecessary to point out that research demonstrates that these products drive families into bankruptcy and onto public assistance; the numbers speak for themselves. As one Hoosier payday borrower put it, "These businesses become a lifetime ball & chain that will drag a person into a worse financial situation than they were in the day before." We cannot allow this bill to pass.
Current state law caps installment loans of $2000 or less at 36%, and an APR of 72% is consider felony loan sharking. This new bill is a radical departure from a long-time standard of protecting consumers from usury - unethical or immoral lending.
Please call members of the committee and tell them to VOTE NO on SB 245. Amended or not, this bill will damage Hoosier families and the economy.
Senator Travis Holdman (Chair/Bill Author), 317-232-9807
Senator Greg Walker, 317-232-9984
Senator Rodric Bray, 317-234-9426
Senator Jeff Raatz, 317-233-0930
Senator John Ruckleshaus, 317-232-9808
Senator Joseph Zakas, 317-232-9490
Senator Andy Zay, 317-234-9441
Senator Frank Mrvan, 317-232-9532
Senator Eddie Melton, 317-232-9491
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If you are interested in testifying, please contact emacey@incap.org for more information.
