10/27 Hearing on Payday Loans

WHAT:

Hearing on Payday Loans

Consumers’ Advisory Council

WHEN:

2 - 4 p.m. Wednesday
October 27

WHERE:

Shiloh Baptist Church
237 E. Fifth Street

Lexington

Click here for a map to the church.

The public is encouraged to participate

DETAILS:

Last week, the first of three hearings on payday loans hosted by the Consumers’ Advisory Council took place last week in Louisville. Thank you to everyone who got the word out and showed up! We made a clear case that addressing payday loans is a top priority for the state. Over 100 Kentucky citizens attended, and testimony was presented by several organizations in support of curbing 400% interest rate loans in favor of a 36% rate cap. Fittingly, the hearing closed with the compelling stories of 4 mothers whose financial situations were devastated by payday lending. As you may have heard, the payday lending industry was invited, but refused participate in person! We have to keep up the momentum as we prepare for next hearing in Lexington on Oct. 27.

Here is the big news from the hearing that we must all raise up: the database shows that the debt trap continues in Kentucky. Based on the information presented at the hearing, an average Kentucky borrower has been already stuck in more than 8 payday loans and already paid more than $430 in fees alone in 2010. It is clear that the database is working to track the debt trap, showing that it is the rule not the exception. Now that we have the data, we need to continue our call for a common sense 36% cap, just like they’ve done for the military.

• Testify: We need individuals to tell their personal stories with payday lending. If you , or someone you know or work with has had a payday loan, please ask them to attend the hearing and speak. We’d like to talk with these individuals prior to the hearing if possible to record their stories in writing.

• Be visible at the hearings: We need as many of us and members of your organizations to attend as possible. Our elected officials need to see that the voters around the state care and are impacted by this issue.

• Spread the word: Please forward this information to your members and to other list-serves.

Please call or email Anne Marie Regan (amregan@bellsouth.net, 502-333-6012) or Lisa Gabbard (lgabbard@kdva.org, 502-209-5382) if you can help.

We are off to a great start and need to keep up the pressure at all three hearings. These hearings are an opportunity for us to build a strong record that 400% interest rate loans negatively impact Kentucky families. We need your support and presence to tell the real story about the payday loan debt trap.

SPONSOR:

Kentucky Coalition for Responsible Lending

FOR MORE INFORMATION, CONTACT:
Anne Marie Regan
(502) 333-6012

Lisa Gabbard

(502) 209-5382

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