May 2020 Update

Big News: Our COVID-19 Response Efforts

This era of #StayHomeMN (and the slow move toward #StaySafeMN) is always uncertain, occasionally unnerving, and seemingly unending. But as we remain physically distanced, our team’s response is emotionally anchored by our unwavering belief in the power of community-based, people-centered responses to crises of any scale.

“Getting through this together” is not a catchphrase. Rather, it is a call to action. We are thrilled to see our community taking this to heart. Thanks to an unbelievably generous donation by a local Minnesotan couple, Exodus Lending is launching a multi-phase COVID-19 response effort to provide direct relief to participants.

As part of the first phase, Exodus Lending will cover up to three months of payments beginning this month for all current participants who opt-in. Here’s how this initiative creates financial stability for our participants:

• Requiring participants to opt-in empowers individuals to be active, engaged consumers. It is an opportunity for participants to build the habit of being proactive, not reactive, whenever possible.
• Covering payments instead of deferring them lessens each individual’s debt burden while increasing their disposable income at a time when funds are desperately needed.
• Reporting covered payments to the credit bureaus as on-time and in-full may improve scores and increase participants’ access to safe, non-predatory credit options in the future.

We are also asking participants for their input, and their feedback will shape our next phase of relief efforts. Participants could not be more appreciative of this model and the donors’ generosity. As one participant wrote us,

Thanks so much for your generous help, especially at this most difficult time. I live alone and am almost 70 yrs. old. Finances have been very tight throughout this very trying time. You have helped me balance my budget. 

Undeterred, our team is diligently working on our refinancing and response efforts to ensure predatory debt does not further derail Minnesotans’ lives. Your support keeps our unique programs operating uninterrupted. 

Fundraiser Update

Inspired by our ever-present keyboards, we are pivoting our annual summer event to be a week-long virtual fundraiser. Unfortunately, we cannot quickly escape this nightmare and return to some semblance of normal. However, we can shift our perspective while keeping tabs on our mission: to delete predatory debt, to create space for people to regain control, and to imagine an alternate and just economic reality. 

Join us June 1st through the 5th, for Ctrl+Alt+Del Debt with Exodus Lending! Further details to come.

Annual Report 2019

Since 2020 is not cooperating, we are also making space to reflect on the good times for our organization by releasing our 2019 annual report. So take a break from 2020 and read the full report.

Predatory Lending in the News

In case you missed it, here are some of the latest news on predatory lending: 

• In a memo obtained by the New York Times, a former staffer claims the CFPB used a manipulated process and inaccurate data to justify gutting the key “ability-to-repay” provision of the 2017 payday loan rule.
• According to the Washington Post, payday lenders who charge 400% interest want access to low-interest, forgivable Paycheck Protection Program loans.
• As one borrower writes for Huffington Post, financial distress during COVID-19 creates fear and causes panicking people to take out unfair payday loans for “instant” relief despite the long-term consequences.

Exodus Lending E-Newsletter: May 2020