Leaders Gather to Address Predatory Payday Lending
Business leaders, nonprofit organizations, and community advocates recently gathered to discuss one of the most pressing financial challenges facing working families: predatory payday lending.
CDFI Friendly hosted the event in partnership with Brightpoint Development Fund to introduce the Community Loan Center (CLC) model — an innovative approach that helps workers access safe, affordable loans through their employers.
In Indiana, payday lenders can charge interest rates as high as 391%, trapping many borrowers in cycles of debt that can be difficult to escape. For workers facing unexpected expenses, payday loans often appear to be the only option.
The Community Loan Center model offers a better alternative.
Through employer participation, workers can access small-dollar loans that are repaid through payroll deduction. The program provides:
Lower, transparent interest rates
Fixed repayment schedules
No hidden fees
A pathway away from predatory lending
The event brought together employers, financial institutions, nonprofit organizations, and financial empowerment advocates to explore how the model could be implemented locally.
We want to thank the Notre Dame Federal Credit Union for their sponsorship, AND their dedication to helping stop predatory payday loans. We partnered with the United Way, the Near Northwest Neighborhood, and the South Bend Financial Empowerment Center to spread the word about predatory lending and encourage employers connect employees with resources like the CLC.
Organizations including financial empowerment partners, community nonprofits, and employer leaders discussed how workplace-based lending alternatives can strengthen financial stability for workers while improving employee retention and wellbeing.
CDFI Friendly believes addressing predatory lending requires collaboration between employers, lenders, and community organizations. Programs like the Community Loan Center demonstrate that practical solutions exist when communities work together.
Employers interested in learning more about the program are encouraged to connect with CDFI Friendly to explore how they can participate.
Thank you WVPE for coverage on the event, read/hear that story HERE.
