October 2022 Update

By Kaitlyn Szabo • November 8, 2022

Welcome, Minnesotans for Fair Lending!

We are very excited to share that Exodus Lending has incorporated the Minnesotans for Fair Lending (MFL) into our organization. MFL is a non-partisan campaign and coalition dedicated to eradicating the predatory aspects of payday lending across Minnesota and nationally. For years, MFL has successfully used grassroots organizing to advance economic justice in Minnesota. Their accomplishments include passing the first-ever municipal interest rate cap by city ordinance in Moorhead in 2020. 

As of September 1, we welcomed back our co-founder, Meghan Olsen Biebighauser, as Organizing Director with Exodus Lending. She leads a team that includes former Moorhead City Council member and current MFL City Policy Specialist, Heidi Durand, and local organizer, Sophia Hoiseth. They are currently working to replicate the “Moorhead model” in cities across the state, including in the City of Mankato. Ultimately, these local solutions could help Minnesota join the 18 states and D.C. with a statewide 36% rate cap.

“This was a natural move for the campaign since, like Exodus Lending, it also has direct roots out of Holy Trinity Lutheran Church. I’m also excited about the opportunity to have direct lending and community organizing under the same roof to elevate the voices and leadership of those directly impacted by the payday loan debt trap.”

– Meghan Olsen Biebighauser, Organizing Director

As part of this merger, Exodus Lending will take over operational oversight from the Minneapolis Area Synod of the ELCA. We are grateful to them for putting their faith and trust in us to carry on this work. Additionally, we are thankful to Bush Foundation and The Impact Project for their investment and partnership. Thank you also to our creative friends at Slalom who redesigned the MFL brand and pages on our website. And lastly, we are excited to work with you to fight and finance our way toward more equitable lending.

“Getting people out of the predatory loan debt trap remains core to our work and mission, but we cannot work toward reparative wealth building and economic justice without eradicating the unjust systems and structures that are holding people in situations of indentured borrowing. We are uniquely positioned to share the stories of the 550+ borrowers that have been directly impacted and systemically targeted by the harmful practices and tactics of predatory lenders. We are committed to providing more space and opportunities for our current participants, graduates, and supporters to lift their own voices and stories to mobilize in action for systemic and legislative change.” 

-Anne Leland Clark, Executive Director

Predatory Lending in the News

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

• In a recently published report, the Center for Responsible Lending analyzes the harms of high-cost installment loans for borrowers. They also specify the steps policymakers and regulators can take to protect consumers.
• Additionally, Investopedia summarizes a CFPB lawsuit against online lender MoneyLion. Allegedly, MoneyLion provided financial products and services to military service members and their families that violated the Military Lending Act. 
• Finally, the Daily Herald highlights Tennesse nonprofit, Pay Grace Forward, which offers low-interest loans to borrowers struggling with high-cost payday loans.

Exodus Lending E-Newsletter: October 2022