Congress must provide consumer protections in the next COVID-19 relief bill
Congress must provide consumer protections in the next COVID-19 relief bill
Indiana groups urge the Indiana delegation to halt debt collection, cap predatory loan interest rates at 36%, and suspend negative credit reporting
For Immediate Release
July 29, 2020
Contact: Erin Macey, Senior Policy Analyst, Indiana Institute for Working Families, emacey@incap.org, 317.638.4232
Andrew Bradley, Policy Director, Prosperity Indiana, abradley@prosperityindiana.org, 317.222.1221 x403
Indianapolis — This week, the Indiana Assets and Opportunity Network and other Indiana-based organizations will participate in the Stop The Debt Trap Coalition's national Week of Action to urge Congress to step up on behalf of consumers facing hardship during the ongoing coronavirus pandemic. Advocates across the country are calling on elected leaders to pass a much needed COVID-19 relief bill that includes a ban on debt collection, caps interest rates at 36% to stop predatory lending, and halts negative credit reporting.
“On behalf of hundreds of Hoosiers who we serve and represent, I urge Congress to address the negative impact debt can have on our vulnerable fellow citizens with some responsible, compassionate legislation,” said Keith Carlson, Executive Director of the GCC Foundation.
Sarah Williams, Public Policy and Advocacy Director for Marion County Commission on Youth, echoed these concerns.
Williams said, “When people are charged such high interest rates that are designed to keep them trapped in debt forever, it not only affects that individual, but their entire family has to struggle with this financial burden, including their children. In particular, during a pandemic such as the one we are experiencing, parents need to prioritize keeping themselves and their families healthy and well-supported, which is why congress needs to pass another COVID relief bill to halt debt collection, stop predatory, high-interest lending, and prohibit negative credit reporting.”
Kathryn Hadbecker, Impact and Advocacy Manager for Indiana United Ways, has similar concerns. “We know that prior to the pandemic, many Indiana households were already struggling to make ends meet. Since the pandemic and the economic disruption it caused, more Hoosiers have joined them. We strongly urge our Congressional delegation to support policies now that will alleviate the challenges faced in each of our communities from the pandemic and that will fortify consumer protections which ensure Hoosier families are on a path to financial stability.”
While relief provided by the CARES Act temporarily stabilized many households, nearly one-third of Hoosier renters are now not sure how they’ll make rent next month. Worse still, 57.1% of Black Hoosiers have little to no confidence in their ability to pay rent in August. That figure soars to 77% for Hoosiers who have used unemployment to pay bills in the last seven days. Without action from Congress, high-cost lenders and other financial actors could take advantage of struggling Hoosiers, causing long-term damage to these individuals, their families, and the economy.
"With an unprecedented number of Hoosiers filing for unemployment and losing income due to the pandemic, we know that a disturbingly high proportion of Indiana households have been forced to exhaust savings just to pay for basic needs," said Prosperity Indiana Policy Director Andrew Bradley. "Predatory lenders, debt collectors, and credit reporting agencies shouldn’t be allowed to take advantage of people facing terrible economic hardships during this pandemic. Hoosiers need our Congressional delegation to act as our champions and ensure that the final COVID relief bill includes halting debt collection, stopping predatory, high-interest lending, and prohibiting negative credit reporting."
The Indiana organizations participating in Stop the Debt Trap Coalition’s national Week of Action are urging the Hoosier delegation to include consumer protections in the next package and encourage others to take these messages to their Representatives and Senators as well.
“A large and diverse coalition has been fighting for stronger consumer protections for Hoosier families over the past several years,” said Erin Macey, Senior Policy Analyst at Indiana Institute for Working Families. “Our work is even more critical in this crisis.”
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About the Indiana Assets & Opportunity Network
The Network creates learning opportunities for community leaders, advocates on policies that affect low-to-moderate income families, and builds capacity for organizations aimed to increase financial stability. It is co-led by Prosperity Indiana which is a member organization skilled at building vibrant communities and resilient families; and the Indiana Institute for Working Families (IIWF) which is a program of the Indiana Community Action Association, skilled in research, policy analysis, and advocacy. The Network is directed by a diverse steering committee to help establish program and policy focus. They meet bi-monthly to help identify funding sources, opportunities, and coalition partners.