“What Now” That The Payday Fight Is Over

PayDay Loans: They Shouldn’t Be The Only option

by Gail Riecken CCO StateHouse Editor

It was welcoming news that the newest push to increase interest rates on PayDay loans was defeated. I’ve not seen before such a widespread commitment among organizations and individuals to harness the cost to PayDay customers. Telling PayDay lobbyists “no” is one thing, but families do need better options. Information about those programs available is a good start.

I was excited to learn from one of the advocates for working families that her organization and others are actively working to improve the publicity about ongoing options available to families. There will be a presentation in April in Evansville from one of the organizations which, when the date is advertised, I’ll make sure CCO has it in this online publication.

One of those options is a program I worked to get through the legislature-Prize-linked savings accounts. Available through banks and credit unions in Indiana and operating in other counties, Evansville has yet to pick up this idea—- www.savetowin.org for more information.

There are other options to save for emergencies which we need to know more about,  but there may always be that need for a family to borrow money. Some 20 counties in Indiana have answered that need. They have an employer program where borrowing on the next paycheck comes out at work with 21% apr instead of the PayDay cap at 36%.

It is positive that our legislators slammed down hard on PayDay lending. Tell them “thank you”. Now let’s think of more ways we can help Southwestern Indiana families in a constructive way to meet their needs.