CCC FORUMS

rbushey · Posted: Wed Jan 10, 2007 10:40 am Post subject: PayDay Lending

CIOP: Fighting 550% Interest Payday Loans
Advance America, the largest Payday lender in the country, charges 550% interest for its installment loans. This translates into $1620 for a $600 loan due five-months later. Coupled with the industry’s history of abusive collection practices and lack of disclosure, the disturbing growth of Payday Loan Stores to the point that they now outnumber McDonald’s Restaurants must be confronted. Payday loans, which are small, short term loans given to often desperate consumers with exorbitant interest and fees, are used widely mostly by parents making between $25,000 and $50,000 a year.
The Central Illinois Organizing Project (CIOP) has led the fight in Central Illinois to stop predatory home loans and to bring responsible products to the market for low and moderate income borrowers. Through confrontation and negotiation, CIOP has reached agreements with some of the largest financial institutions in the world including CitiFinancial, National City Bank, Regions Bank, and Fannie Mae. The same resolve and community involvement will be needed as the fight against predatory lending moves to abusive, short-term credit.
Thankfully, there is a solution to the growing number of Payday Loan Stores. All Payday Loan customers need to have a job and a bank account. While it is unfortunate that most mainstream financial institutions are not offering responsible, alternative products, a growing number of institutions across the country have begun doing so demonstrating its feasibility. If the community can work together, we can help bring alternative products into the marketplace, steer consumers toward these products, and stop abusive Payday lending practices.
We need your help.

Please contact Ian Schwab with the Central Illinois Organizing Project (CIOP) at 217-355-6423 to find out how you can make real changes in your community.
WWW.CIOP.ORG
Central Christian Church is a member of CIOP, an ecumenical, faith-based community organization with a mission to help its membership work collectively for justice in local communities and throughout the Central Illinois region.