In case you missed it, our executive director, Sara Nelson-Pallmeyer, joined Chris Farrell of MPR News and Professor Creola Johnson from Ohio State University to discuss the issue of payday lending.
Here are the key takeaways from the segment about the injustice of predatory lending, what we are doing to stop the debt trap, and how YOU can get involved.
Firstly, payday loans are small-dollar loans with triple-digit annual percentage rates that are due in a single payment in two to four weeks. Borrowers who cannot repay on time often fall into a renewal cycle called the payday loan debt trap. Additionally, other similar products include auto-title and short-term online installment loans. Some lenders operate without a license, with one from states with weaker regulations, or under American Indian tribal authority.
On behalf of enrolled Minnesotans, Exodus Lending pays off up to $1,500 of predatory payday, title, or online installment loan debt. Participants then repay over at least 12 months, with no interest on their loan with us. We’re well-equipped to help more Minnesotans break free from payday loan debt. Therefore, if you’re interested, take our eligibility quiz to see if you qualify or call us at 612-615-0067.
Interest rate caps effectively eliminate payday lending. Minnesota can join 17 other states by passing an effective, fee-inclusive 36% rate cap on small-dollar loans as outlined in HF 102 and SF 892. Nationally, there are ongoing efforts to extend the existing 36% interest rate cap only for active-duty military members to all consumers. Connect with Minnesotans for Fair Lending to follow their local advocacy efforts or contact your representatives.
Exodus Lending is excited to welcome Sola Olateju, Joan Riley, Ryan Smith, Relesha Billups, and Jyoti Gidwani to our Board of Directors! They join continuing members Tonia Brinston, Gary Hess, Eric Howard, Gene Hummel, Missy Juliette, Anne Leland Clark, Sonia Palmer, Nick Scheibel, Sarah Schoolcraft, and Vienna Wilson.
Of course, we want to thank outgoing board members, Kit Fordham, Michelle Grosz, and Cindra Vang for their contributions. To learn more about our board members, visit our “Who We Are” webpage and scroll down.
Are you a Thrivent member? If so, you can have until March 31st to allocate your Thrivent Choice Dollars to support Exodus Lending. Learn more on Thrivent’s website.
Predatory Lending in the News
In case you missed it, here are some of the latest news items on predatory lending:
Exodus Lending’s office remains closed. Our team is working remotely and can be reached by phone at (612) 615-0067 or by email at [email protected]
Exodus Lending E-Newsletter: March 2021