February 2023 Update

Stop the Debt Trap Day on the Hill

Good news, folks: lawmakers are considering a bill that will cap interest rates on payday loans at 36%. So let’s make 2023 the year we end the payday loan debt trap in Minnesota.

Join us on February 28th for a “Stop the Debt Trap Day on the Hill” as we rally with key leaders and bring our energy and power to the Senate committee hearing at the Capitol. We will host speakers on the issue, help schedule individual meetings with legislators, and attend a hearing at the Senate on the reform bill. Our team will also provide materials you may need to meet with your legislators (If you would like an MFL advocate to accompany you during your meeting, email meghan@exoduslending.org). We will also provide a box lunch to those who register in advance. 

Lending Update

While we push for people-powered systems change at the Capitol, Exodus Lending continues to offer dignified consumer lending to low-income, credit-limited borrowers throughout the state. Last year, we refinanced 108 high-interest auto-title, payday, pawn, and online installment loans for 80 Minnesotans. That’s double the number of enrollments and nearly triple the number of refinanced loans from 2021! By paying off $91,101 in debt and setting up no-interest, no-fee payment plans to repay, we estimate saving borrowers more than $309,000 in exploitative interest and fees that they would have otherwise paid to lenders. Additionally, we recently launched a zero-interest, small-dollar personal loan pilot and have provided loans to 10 Minnesotans thus far.

We’re Hiring!

Are you interested in working with us to advance economic justice through borrower-focused, fair lending? Well, we have even more good news for you – Exodus Lending is seeking a new Lending Program Coordinator. This role will facilitate the end-to-end experience for borrowers who mainstream institutions have historically shut out. The Lending Program Coordinator is a full-time, non-exempt position with a starting hourly rate of $20 to $22, with benefits. To apply, please send a cover letter and resume to jeremiah@exoduslending.org by Friday, March 3.

Predatory Lending in the News

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

• ProPublica and The Current explored the controversial sales practices of the nation’s biggest title lender. Their report shows how employees were trained to keep customers unaware of the true costs of their services.
• As CNBC outlines, Black households face significant barriers to building generational wealth, such as being more likely than white Americans to be underbanked or rely on alternative financial solutions.
• In an op-ed in the Chicago Sun-Times, State Senator Jacqui Collins details how pawnbrokers use a loophole to evade the recently passed 36% interest rate cap in Illinois and charge APRs of 240% or more.

Exodus Lending E-Newsletter: February 2023