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Local Return hosts a virtual Coffee Hour & Info Session on predatory lending

Virtual Coffee Hour & Info Session: Predatory Lending

Perhaps you’ve heard about recent momentum around legislation curbing predatory lending or payday loans. Or maybe you’ve been following this issue for the past 13 years, wondering why payday lenders in Rhode Island enjoy a statutory carve-out allowing them to charge up to 260% APR.

Join us for a virtual Coffee Hour & Info Session on Friday, April 21, at 9:00 a.m. to learn more about this harmful practice and what we can do to end it in Rhode Island. We’ll be joined by Margaux Morisseau, deputy director at the Rhode Island Coalition for the Homeless, and Alan Krinsky, director of research and fiscal policy at the Economic Progress Institute.

Payday loans are high-cost loans structured to perpetuate an ongoing cycle of debt. The
federal Consumer Financial Protection Bureau’s research on payday lending practices shows that the average payday loan consumer gets caught in a cycle of debt, taking
out 10 loans per year due to an inability to pay off the balance with the constantly growing fees.

Rhode Island is a policy outlier. Nationally, 18 states and the District of Columbia have laws with rate caps of 36% or lower. Congress acted in 2006 to protect active-duty military personnel by capping loans to such individuals at 36%.

In 2018, payday lenders drained $7.5 million in fees from Rhode Islanders. That’s $7.5 million being extracted from our families and neighborhoods.

There is momentum building at the State House to end this carve-out and institute a 36% APR cap. Margaux and Alan will bring us up to speed about why this issue matters, answer questions about the pending legislation, and let us know what we can do to help.

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