April 2023 Update
Let’s Talk About Payday Lending Reform
Over the years, participants like Desiree have come to us with horror stories of their payday loan experiences.
“It was a god-awful mess… I would never recommend that type of loan to anyone.”
– Desiree Smith, former payday loan borrower and Exodus Lending program graduate
It is their voices calling for change that fuels our continued advocacy efforts to pass a 36% annual interest rate cap on small-dollar, short-term loans in Minnesota. The MN Reformer recently published a compelling article on payday lending reform that did a great job of centering Minnesotans most directly impacted by predatory lending.
At this point, payday loan rate cap provisions are included in the House Commerce omnibus bill (HF2680), and we’re eager for the Senate to follow suit. In the meantime, find your legislator and let them know in an email or voicemail that you want a 36% rate cap on payday loans to get done this session!
“If they can’t come up with a business model with a 36% interest rate — which is higher than what most people would choose to take — then that’s on them.”
– Meghan Olsen Biebighauser, Organizing Director at Exodus Lending
Financial Inclusion Award
Join us at the Saint Paul Financial Empowerment Community Awards on Tuesday, April 25 from 4:30 to 6:00 pm at the Science Museum of Minnesota. During the event, we will receive the Financial Inclusion Award! RSVP here to celebrate with us and other local economic justice leaders.
2023 Lending Update
In the first quarter of 2023, Exodus Lending has paid off more than $41,000 in predatory loans for 36 Minnesotans. We also wrapped up our Resiliency Loan pilot and provided more than $32,000 in interest-free personal loans to 28 borrowers. Thank you to Northside Residents Redevelopment Council (NRRC), The Dignity Center, and Neighbors, Inc, for being active partners! We are continually working to improve our systems to sustainably manage our growing loan portfolio and products, and the coming months will include community conversations to inform our relaunch of the Resiliency Loan program later this year.
Welcome, Troye!
We are excited to welcome Troye Dylla to our team as our Lending Program Coordinator! Troye will be working closely with our program team to support incoming participants from inquiry to loan closing.
Save the Date
Lastly, our team is busy planning our annual summer fundraiser for Tuesday, July 25th. So please stay tuned for more details!
Predatory Lending in the News
In case you missed it, here are some of the latest news items on predatory lending:
- Firstly, Texas Monthly reports on the recent efforts by the state’s legislature to undo municipal protections against predatory payday lending.
- Anchorage Daily News highlights a new bill that would eliminate ‘predatory’ payday loan lenders in Alaska. The bill would require lenders to abide by interest rates and fees standards used by regulated banks.
- Finally, Fox 13 Memphis showcased a partnership between banks and nonprofits to provide personal financial coaching and access to emergency financial assistance as a means of combatting reliance on payday loans.
Exodus Lending E-Newsletter: April 2023
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