Hoosiers For Responsible Lending Coalition Launches To Fight Payday Lending


Hoosiers for Responsible Lending is an association of groups and organizations that work to protect Hoosier families from payday loans.  - Lauren Chapman / IPB News

Hoosiers for Responsible Lending is an association of groups and organizations that work to protect Hoosier families from payday loans.

Lauren Chapman / IPB News

More than 47,000 Hoosier households have taken out payday loans in the past 12 months, according to the Indiana Institute for Working Families. A new coalition has set itself the goal of educating Hoosiers about the dangers of payday loans.

Hoosiers for Responsible Lending is a coalition from veterans organizations, faith groups, consumer groups and social service providers.

It brings together groups who have spoken out against payday loans at the statehouse for years.

Natalie James, founder of the Prosperous Indiana Coalition, said the alliance will push for legislation at the upcoming session to prevent predatory loans from taking advantage of hoosiers in financial distress.

“We are trying to put an end to lending practices that target vulnerable Hoosiers and lure them into the trap that is robbing them and their communities of wealth,” said James.

Currently, payday lenders can charge up to an interest rate of 391 percent annually on loans. The organization network advocates a reduction to 36 percent.


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Andy Nielsen is a Senior Policy Analyst at the Indiana Institute for Working Families. He said state law allows payday lenders annual interest rates of up to 391 percent, which harms not only borrowers but also the state and local economies.

“By comparison, at 36 percent APR over current Indiana law, borrowers in Indiana could have saved nearly $ 300 million over the five-year period through 2018,” said Nielsen. “It puts more money into local economies and communities that normally lack resources but payday lenders can thrive.”

The group wants to work in the coming legislative period to cap interest rates on payday loans. It also aims to increase opportunities for other non-predatory loan options for Hoosiers.

The alliance offers a virtual information event Tuesday, September 14th at 2 p.m. EST.

Contact reporter Samantha at [email protected] or follow her on Twitter at @ SamHorton5.





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