Earlier this week, the Louisiana Senate narrowly passed SB 365, a bill that would allow predatory payday and car title loan companies to financially exploit Black communities with “installment loans” that carry interest rates of over 167%. Trapping them in a cycle of toxic debt.
Payday lenders and car title lenders already drain more than $240 million in fees each year from low-income Louisiana residents. Louisiana should be reining in these devastating practices, not expanding them. Similar bills have been blocked in 14 out of 16 states where they were introduced and we’re fighting to block this one in Louisiana.
We have a real chance to shut down this exploitative bill in the House, but we need to act fast. The legislative session is winding down, and the only way for this bill to move forward is if Chair of the House Commerce Committee, Rep. Thomas Carmody, listens to payday lobbyists and extends the session. A flood of calls from Louisianans is just the pressure we need to stop this exploitative bill.
Call Rep. Thomas Carmody and tell him to kill SB 365
Black people are twice as likely to become trapped in long term cycles of debt from predatory loans and that is deliberate. Even when income is the same, payday lenders set up shop in 2x as many Black and Latinx communities than white ones.1 By targeting Black and Latinx communities, this industry is doing everything it can to keep people of color in financial servitude and widen the racial wealth gap. In Louisiana, 79% of payday loans are lent to borrowers on the same day they paid back their previous loan, while 87% of loans went to borrowers who re-borrow within two weeks of paying back their old loan.2
Fourteen organizations, including Color of Change and the Louisiana NAACP, have signed an open letter asking the Louisiana legislature to block this bill because of the harm it would cause low-income families and Black communities, in particular.3 Under SB 365, payday loan company would still have direct access to your bank account, removing their exorbitant fees from your account before you even get to pay your regular bills or buy groceries. Louisiana needs responsible lenders, like HOPE Credit Union, who offer installment loans that help borrowers build savings and improve their credit score. Support for this payday lender giveaway is waning, and if we put pressure Rep. Carmody we can shut it down for good.
Tell Rep. Carmody: stop selling out our communities
Until justice is real,
–Evan, Brandi, Rashad, Arisha, Jade, Johnny, Future, Corina, Chad, Mary, Angela, Saréya, Eesha, and the rest of the Color Of Change team
“Predatory Profiling: The Role of Race and Ethnicity in the Location of Payday Lenders in California”, Center for Responsible Lending, 26 March 2009 http://act.colorofchange.org/go/24924?t=8&akid=11118%2E2802358%2EWLLCwy
“Analysis: SB 365 expands the predatory debt trap”, LA Budget Project, 9 April 2018 http://act.colorofchange.org/go/42366?t=10&akid=11118%2E2802358%2EWLLCwy
Letter to House and Senate Commerce Committee Members, LA Budget Project, April 2018 http://act.colorofchange.org/go/46305?t=12&akid=11118%2E2802358%2EWLLCwy
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This email from Color of change urges Louisiana residents to speak against a bill in the legislature designed to enhance predatory lending throughout the state.