PathWays PA Policy Blog

From our friends at Stop the Debt Trap Earlier this year, the Consumer Financial Protection Bureau announced it would rescind the ability-to-repay standard from the 2017 final rule. That means that payday loan sharks would not have to follow the common-sense practice of determining whether a borrower could repay a loan before granting it. This practice would trap more people in endless cycles of debt and hurt consumers. Currently, the CFPB is assessing tens of thousands of comments that support keeping the ability-to-repay standard. Congress is lending its voice to this process: Chairwoman Maxine Waters (D-CA) is sponsoring a letter urging the CFPB to keep the ability-to-repay in their final rule. We need your help to get as many members of the House of Representatives to sign on to this letter as possible. Now is the time for action: Before consumer protections are gutted, we need you to call your member of Congress and tell them to side with consumers, not with the payday l...

In October 2017, the Consumer Financial Protection Bureau (CFPB) put out a final rule to protect consumers and borrowers from excessively high interest rates on payday loans, car title loans, and other predatory lending. According to Prosperity Now, these rules  represented "the first-ever attempt at the federal level to regulate an industry that each year siphons off more than $8 billion dollars from the pockets of hard-working individuals and families. Built on over five years of CFPB research, community and stakeholder engagement—including more than one million comments submitted during the public comment process last year—this landmark regulation ensures that consumers everywhere are protected from the many predatory practices that plague the payday lending industry." But today, unfortunately, these rules are in jeopardy. Earlier in the year, CFPB announced plans to change the payday lending rule. We are now in a comment period to allow stakeholders to offer feedbac...

Several government agencies are proposing regulations that you can comment on. Let the federal government know what you think! SNAP (food stamps) - Federal law currently requires that childless adults can only receive three months of food assistance over a three year period unless they can document working at least 20 hours per week. However, states can waive these rules in times of high unemployment. New USDA rules would eliminate those waivers, ending SNAP for about 755,000 adults.  Take Action:  Feeding America, the Food Research & Action Center, the Center for American Progress, and the Center on Budget and Policy Priorities are helping coordinate a campaign to oppose the rule. For additional resources and details about the campaign, please visit http://bit.ly/SNAPRuleCampaign . Social Security - The Social Security Administration is proposing a rule change that would eliminate "inability to communicate in English" from the list of categories considered whe...

While the Senate chose to skip its usual August recess this year, the House is at home with its constituents - you. Why not take the time to meet with your legislators and tell them what you are thinking about? If you're not sure how to go about setting up a meeting (or what to do once you're there), check out our information below. Decide what you want to meet about: There's so many issues to discuss right now - healthcare ,  DACA , domestic violence and the Violence Against Women Act, paid family leave and the FAMILY Act , payday lending .... Think about what matters to you, and do a little research to learn more until you feel comfortable talking about it. Set up the meeting: Prosperity Now put together a great tool for setting up recess meetings, including a sample email and information on how to contact the scheduler in your legislator's office.  If you're uncomfortable with this format, you can make it simple - find your member of Congress here , a...

HB 2429,  which would allow predatory payday lending in Pennsylvania, is scheduled for a committee vote on Wednesday, June 6. Pennsylvania currently has one of the strongest laws against payday lending in the country. If passed, HB 2429 would weaken the law by creating loopholes that payday lenders can use to charge exorbitant rates. Under this law, lenders could charge interest of up to 300%. You can read more about the proposed legislation  here . You can also read a policy brief about "credit services" lending here . Research from the U.S. Department of Defense and experience of other states show that payday loans are damaging enough to require a 36% annual rate cap on fees and interest for payday loans made to active duty military families. Payday loans hurt our communities and should not be given a foothold in PA. Take Action: Please take a moment to contact members of the House Commerce Committee and ask them to oppose this bill. The Stop Predatory Payday Loa...

From our friends at the Bucks County Women's Advocacy Coalition and Americans for Financial Reform  The House of Representatives is poised to open a huge loophole in state interest rate caps and the right of state voters to enact rate caps, effectively giving the green light to payday lenders to charge debt trap interest rates to low-income consumers without having to abide by state laws. HR 3299 poses a grave threat to state interest rate caps and could open the floodgates for payday and other predatory lenders nationwide. This bill wipes away the strongest available tools against predatory lending, leaving consumers vulnerable to interest rates in excess of 390%. Your voice, along with others from across the country, is critical to push back against the lobbying by out-of-state banks, online lenders, debt collectors, payday lenders and others who are seeking your Congressmember’s permission to disregard state-level interest rate limits. This is significant because state ...

FOR IMMEDIATE RELEASE August 23, 2016 PathWays PA joined together with 280 consumer, civil rights, labor, community, and non-profit organizations to emphasize strong and broad-based support for the Consumer Financial Protection Bureau (CFPB)’s proposed rule to restrict the financial industry’s use of forced arbitration – a tactic used by Wall Street banks and predatory lenders to block consumers from challenging illegal behavior in court. In a joint comment letter submitted on the final day of the rule’s public comment period, the groups lauded the proposal as “a significant step forward in the ongoing fight to curb predatory practices in consumer financial products and services and to make these markets fairer and safer.” Read our letter here: http://ourfinancialsecurity.org/2016/08/letter-regulators-afr-280-groups-strongly-support-cfpb-action-forced-arbitration/ . In forced arbitration, banks and lenders bury “ripoff clauses” in the fine print of take-it-or-leave-it contracts to...

Three organizations ( ACCE , NJCU and ISAIAH ) are releasing a report today about women and debt called “ Pinklining: How Wall Street’s Predatory Products are Pillaging Women’s Wealth, Opportunities and Futures .” “Pinklining" refers to aggressive lending by banks and the finance industry disproportionately harming women, and particularly women of color. The report focuses in on payday, student and mortgage lending and is available  here. At the end of the month, another organization will turn its attention to predatory lending as well. On Thursday, June 30 at 2 pm EDT, CFED will host a webinar to explain how the Consumer Financial Protection Bureau’s new proposed regulations aimed at curbing the most abusive practices of the small-dollar lending industry will work and the implications for state-level rule-making. They will also discuss what you can do during the comment period to stay engaged and support the Bureau’s efforts, including engaging with the # ConsumersCantWait ...

From our friends at the Center for Responsible Lending The Consumer Financial Protection Bureau (CFPB) recently released proposed rules that, if strengthened, could rein in the worst abuses of payday and car-title lending. This is a huge opportunity to stop the debt trap, but the CFPB needs to hear from you. Add your voice now to stop the debt trap! http://stoppaydaypredators.org/crl/   Want to do more to stop payday lending? Call your representative and ask them to pass a clean Financial Services and General Government Bill. You can reach your representative by calling 202.224.3121 and asking to be connected to their office. If you don't know who your Representative is, find out here . Our friends at the Consumer Financial Protection Bureau (CFPB) put together this script to use when you are connected: My name is [ your name ] [ from your organization or coalition if you represent another group ], and I’m calling to request that you oppose the Fiscal Year 2017 Financ...

Last week, a co-sponsorship memo  regarding the legalization of a new loan product, the “Pennsylvania Financial Services Credit Ladder,” began circulating in the State Senate. This product would essentially allow payday lending in Pennsylvania under Consumer Financial Protection Bureau’s (CFPB) proposals. A payday loan is a small, short-term loan typically due on the borrower’s next payday. Instead of specific assets, the borrower is required to provide the lender access to their bank accounts as collateral, forcing repayment to take priority over important living costs such as rent, health or childcare. Interest rates for payday loans are much higher than secured loans, easily shooting up to triple digits (300-400%). The payday lending industry argues that high rates are necessary as conventional interest rates for lower dollar amounts and shorter terms are not profitable. However, there is no definite way of calculating the annual percentage rate (APR) that is used in turn ...

PathWays PA invites you to join a statewide coalition focused on addressing the needs of low-income Pennsylvanians and the policies that can help them build assets and resources. This coalition will be part of the nationwide Assets and Opportunities Network, a movement-oriented group of advocates, practitioners, policymakers, and others nationwide working to expand the reach and deepen the impact of asset-based strategies. Network members are on the frontlines of state and local policy advocacy, coalition-building and service delivery. RSVP to join us or to learn more during our interactive webinar December 2! As you may know, PathWays PA is an active, known presence in the areas of policy and advocacy in Pennsylvania. We welcome the opportunity to work with your organization to build a strong, vibrant coalition that will play a key role in creating asset opportunities for your clients and for families throughout the state. The goal is to create a statewide effort, encompassing ...

(h/t to our friends at Community Legal Services ) The Consumer Financial Protection Bureau (CFPB) is getting ready to issue rules that could end payday lending nationwide. Payday, car-title, and high-cost installment loans with annual rates of 300% or more can put borrowers in an impossible (and unpayable) position. You can sign on today to a letter that will ask the CFPB to make a strong national rule that will help families everywhere. The letter is available at  https://docs.google.com/forms/d/1JqUV_bXRrk7-AcnUmdvZ6E0F64q6hxvFmugAd34ud2Y/viewform . Sign ons are accepted until 5 PM today, October 16. As the letter states: "It’s time to end the scam and put rules in place that will end abusive practices and slam shut the debt trap." Let's work together to make that happen. If you have been a victim of payday or predatory lending, or if you need help escaping other debt traps, PathWays PA can help. Our Financial Path$ program offers financial education worksho...

As the Senate debates the final bills needed to pass for the state budget to be complete, several news agencies are reporting today of a small clause that was inserted into the House version - unbeknownst to the Senate. Tucked at the bottom of page 55 of a 57-page bill, called the fiscal code, that is related to the budget bill that Gov. Tom Corbett signed into law on Sunday is a clause expressing legislative interest in passing a payday lending bill. Specifically, it says, “it is the intent of the Senate majority leadership and House majority leadership to pass legislation … by October 31, 2013.” Really? Senate Republicans said. “We were not aware that this provision was being added,” said their spokesman Erik Arneson. Even if the code passes the Senate, as it is expected to do, the language remains nonbinding. However, if you have feelings about payday lending or the language inserted into the fiscal code, you can express your opinions to the Senate leaders .  You can a...

Payday lending proponents just unveiled their proposal in the Senate to bring predatory payday loans to Pennsylvania. The payday lenders are promoting legislation that would authorize a nearly 300% APR on a typical two-week payday loan, significantly weakening the state’s current strong laws against such practices. The proposal seeks to hide the dangerous nature of these loans by calling it “micro credit.” There is nothing “micro” about the high cost and large debt trap that comes with these payday loans. But there’s another problem with the proposed legislation. Pennsylvania doesn’t need it. As recognized by the U.S. Department of Defense and Pew Charitable Trusts, Pennsylvanians already have some of the strongest consumer protections in the country. We don’t need debt trap legislation disguised as credit innovation. Please email and call your legislators TODAY through this link . Tell them we don’t need to bring 1,000 payday loans storefronts to Pennsylvania peddling h...

Senator Browne issued a co-sponsorship memo about soon-to-be filed legislation that would legalize high-cost predatory payday loans in Pennsylvania. The bill is not expected to be any different than last year's HB 2191 in that at its core it legalizes the same debt trap payday product. Adding up all the fees and interest, it would legalize a 288% APR on a typical, two-week $300 payday loan. This product is grossly inconsistent with protections in place for Pennsylvanians and the entire U.S. military (which cannot be offered loans with interest above 36% APR), and puts the state's veterans and families at risk. Reach out to your legislators ASAP and ask them not to support Payday Loans in PA !

Chris Lilienthal has a new post up on the Pennsylvania Budget and Policy Center's "Third and State" blog discussing a bill that was recently before the PA Senate to legalize high-interest payday lending in the state. The bill stalled, but as Lilienthal notes: "To be clear, payday lending is not dead... Polls show Pennsylvanians oppose legalizing this type of lending, but out-of-state lenders are not giving up. They will be back next year, advancing payday lending while trying to change the subject, as Mark Price observed last week. But the will of the people - and the editorial boards - on payday lending remains clear: Don't legalize it." Payday lending is a controversial issue because it is widely seen to be predatory, primarily targeting low-income workers and charging them high interest rates for advances of their own hard-earned wages. The Harrisburg Patriot News is currently conducting an online poll to gauge public support for legalizing payda...

( via stoppaydayloanspa.com ) Last week, the House approved 300% interest rate debt to come flooding into the state. The House passed a bill to legalize predatory payday loans by a slim margin. (See how your representative voted here .) Now, the decision now rests in the hands of your Senator. Call today to share your feelings on payday loans. Payday loans are small-dollar, extremely high-interest loans, which typically carry triple-digit interest rates of 300% annually or higher. They are called payday loans because they generally must be paid back in full, with all interest and fees, on the borrower’s next payday. While payday lenders market these loans as “short-term” or “emergency” loans, they really are just a debt trap. Because the loans are so expensive, secured by access to the borrower’s checking account, and due in full just two short weeks later, most people who take out a payday loan are unable to pay it back and still have enough money to pay for their regular ...

Federal Policy Updates SENATE FARM BILL: URGE YOUR SENATORS TO RESTORE SNAP CUTS This week, the Senate is expected to begin consideration of the Farm Bill ( S. 3240 ). The proposal includes a $4.5 billion cut to SNAP over 10 years by reducing the ability of states to take part in the “ Heat and Eat ” program. The cut would mean that an estimated 500,000 households a year would lose $90 per month in SNAP benefits. But there is hope. There is an amendment circulating in the Senate that would restore, over 10 years, the $4.5 billion cut to SNAP and invests $500 million in the Fresh Fruit and Vegetable Snack program. Senator Kirsten Gillibrand has a "Dear Colleague Letter" in the Senate asking for cosponsors for this amendment. If you support this amendment, please contact your Senators (202-224-3121 Senate Switchboard) and urge them to demonstrate their support for SNAP by co-sponsoring the Gillibrand SNAP amendment. Offices should contact Kathryn Tanner in Sen. G...

Federal Policy Updates THE VOTE ON THE PAYCHECK FAIRNESS ACT IS SET This Tuesday at 2:15 pm the U.S. Senate will finally vote on the Paycheck Fairness Act! The Paycheck Fairness Act would deter wage discrimination by closing loopholes in the Equal Pay Act and barring retaliation against workers who disclose their own wages to co-workers. Without this bill, employers can penalize and even fire employees for talking about their salaries. This egregious practice leaves workers in the dark, preventing them from ever finding out about pay discrimination in the workplace. If you support this act your Senator needs to hear from you before the vote on Tuesday. Please take 2 minutes to call your U.S. Senator now and urge a YES on the Paycheck Fairness Act. It's easy. Just dial 1-888-678-9475, and say: “I'm from ______ state, and I'm calling to urge my Senator to vote YES for the Paycheck Fairness Act." The Paycheck Fairness Act is very close to passing can and wil...

SUPPORT EARNED SICK DAYS IN PHILADELPHIA The common cold. Chicken pox. The stomach flu. Besides making you sick and risking your health, these illnesses have something else in common: they could make you lose your job . In Philadelphia, over 200,000 workers have no access to earned sick days when they or their family members come down with an illness. Whether a child is running a fever or a waitress has been hit by a truck door on her way to work, the choice for these employees is the same: to either put someone's health at risk or to jeopardize their own economic security. But there is a solution. Cities across the country have passed bills ensuring that all workers have the ability to earn sick days on the job. Giving access to earned sick days: saves cities money in lower health and emergency room costs   saves businesses money through higher productivity and lower turnover  saves the financial security of workers who otherwise had to risk their jo...