Justice We Pursue

Payday Lending Reform Bill: Floor Votes

 

How did your state legislators vote on the Payday Lending Reform Bill?

One of JRLC's key issues was eliminating the debt trap caused by predatory aspects of the payday lending industry. Although identical bills were not passed in both the House and the Senate, HF 2293 and amended language from SF 2368 were passed in their respective houses.

The bill passed 73-58 in the House and 37-25 in the Senate.

 

In the MN House of Representatives:

73 Yeas: 

Allen

Anzelc

Atkins

Barrett

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Halverson

Hansen

Hausman

Hilstrom

Hornstein

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

McNamar

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Norton

Paymar

Pelowski

Persell

Poppe

Radinovich

Rosenthal

Savick

Sawatzky

Schoen

Selcer

Simon

Simonson

Slocum

Sundin

Thissen

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

 

58 Nays:

Abeler

Albright

Anderson, P.

Anderson, S.

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Dill

Drazkowski

Erickson, S.

Fabian

Franson

Garofalo

Green

Gruenhagen

Gunther

Hackbarth

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kieffer

Kiel

Kresha

Leidiger

Lohmer

Loon

Mack

McNamara

Myhra

Newberger

Nornes

O'Driscoll

O'Neill

Peppin

Petersburg

Pugh

Quam

Runbeck

Sanders

Schomacker

Scott

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zellers

Zerwas

 

3 did not vote:

Anderson, M., Fitzsimmons, McDonald

In the MN Senate

37 Yeas:

Bakk

Carlson

Champion

Clausen

Cohen

Dahle

Dibble

Dziedzic

Eaton

Eken

Franzen

Goodwin

Hawj

Hayden

Jensen

Johnson

Kent

Koenen

Latz

Lourey

Marty

Metzen

Pappas

Reinert

Rest

Saxhaug

Scalze

Schmit

Sheran

Sieben

Skoe

Sparks

Stumpf

Tomassoni

Torres Ray

Wiger

Wiklund

     

 

25 Nays:

Anderson Benson Bonoff Brown Chamberlain
Dahms Gazelka Hall Hann Hoffman
Ingebrigtsen Nelson Newman Nienow Ortman
Osmek Pederson, J. Peterson, B. Pratt Rosen
Ruud Senjem Thompson Weber Westrom

 

5 did not vote:

Fischbach, Housley, Kiffmeyer, Limmer, Miller

 

The problem with short-term relief

by Breanne Royer, student intern

Finals week is around the corner for many students, including myself. This will mean hours spent in front of a computer screen and hours pouring over the books you supposedly read this past semester. All of this adds up to one thing for me: a headache. During finals week, I don’t have time to wait for the headache to go away on its own, so, like many of my fellow students, I reach for an over the counter pain reliever like Acetaminophen (e.g.Tylenol). These drugs are meant as a temporary, short-term fix. Much like payday loans, they are not to be taken repeatedly, one after another, with no break.

Payday Loans are marketed as short-term emergency loans. Much like headache medicine, they are for the temporary relief of financial debt. The problem is, the temporary relief is just that: temporary. The payday loan borrower will take out the initial loan for an emergency, but what we have learned is that the borrower must take out more loans in order to cover additional fees and the newly acquired debt from the initial loan. In a way, you started with a small dose of acetaminophen to relieve that temporary headache, but must continue taking the drug every time it wears off to battle another headache. Why is this dangerous? Because an overdose of this drug can lead to severe liver damage.

Just as the warning on that bottle of acetaminophen which warns about the dangers of liver damage when taken in excess, payday lenders make the interest rates on their loans apparent when the borrower takes out the loan. What is not easily apparent is the debt trap a borrower can find him/herself in after taking out the initial loan. The average borrower in Minnesota is not using payday loans to treat a one-time financial emergency, but rather taking out an average of 10 loans a year in an attempt to close the debt gap. It’s the headache that doesn’t end  - and it is detrimental to the finances of the borrower. Just like the warning on the drug bottle, the information about payday loan fees is there (in tiny print), but the reality of having a headache or financial distress causes a person to discount the future and opt for the quick relief.

The FDA has started asking companies to withdraw medicine with high dosages of acetaminophen and is looking into other regulations for over the counter drugs with acetaminophen. Even with consumer knowledge about the harmful effects of prolonged usage, the FDA recognizes that consumers are sometimes motivated by the situation at hand without considering fully the future consequences of this decision (even well-informed consumers).

Similarly, the payday loan reform bill does not attempt to take away temporary financial aid. Instead, the bill looks to regulate payday loans to protect the finances of consumers. This is a crucial consumer protection issue with a straightforward solution:

  1. Limit the amount of time a consumer can be in debt at triple-digit interest rates; and
  2. Institute reasonable underwriting standards to insure that a borrower has an ability to repay the loan. 

 

Let's limit the harm of the payday loan debt trap while continuing to make payday loans available in an emergency. Contact your State Senator and urge her or him to support payday lending reform.

Breanne Royer is working on a joint M.A./M.S.W. degree at Luther Seminary in St Paul and Augsburg College in Minneapolis, MN.

Tikkun Olam: First-time Reflections on JRLC's Day on the Hill

In the spirit of “tikkun olam” (a Hebrew phrase which translates to “healing the world”), over 700 people of faith gathered for JRLC’s Day on the Hill at the St. Paul RiverCentre and the Minnesota State Capitol on March 13th, 2014!

Not being originally from Minnesota, my first experience with JRLC’s Day on the Hill was helping to prepare for it. I handled registration: entering names into our database to help generate nametags, getting a food count for vegetarian lunch options, ordering copious amounts of water bottles, accommodating group requests, serving as a point of reference for those who needed guidance through our online registration process, and generally doing the best I could to answer any questions people had without ever having actually participated in the event myself.

I had no idea what a JRLC Day on the Hill would look like, but when the time finally came, I was amazed by what I saw.

JRLC advocates were friendly and engaged, and they filled two big ballrooms at the St. Paul RiverCentre. People from so many different faith backgrounds sat around tables chatting, cheering for the speakers, and discussing important legislative issues as they planned their meetings with their state representatives.

After a Keynote Address at the RiverCentre, given by Rabbi David Saperstein, everyone was filled in on our priority legislative issues. The legislative agenda for the day centered on four main objectives: reforming predatory aspects of the payday lending industry, raising the minimum wage in Minnesota, maintaining an impartial state judiciary system, and advocating for government support for childcare assistance and affordable housing.

The RiverCentre was full of an infectious energy that easily transferred to the Capitol building, where our advocates filled the Rotunda and embarked on meetings with their legislators. Once everyone arrived at the Capitol, the Social Justice Awards were given out (congratulations, students from Al Amal School and Jim Soderberg!). In a moving demonstration of interfaith work, Bishop Peter Rogness of the St. Paul Area Synod, ELCA, led everyone in a prayer for Social Justice.

Groups organized by their legislative districts set off to meet with their legislators and have fruitful conversations about the main issues of the day. After months of bitterly cold weather, the outside temperature reached a balmy 50 degrees Fahrenheit, making it comfortable for people to sit outside on the Capitol steps and enjoy the sunshine while waiting for meetings. iCAN and blank slate theatre’s theatrical collaboration BOTTOM, the original play about human sex-trafficking in Minnesota, was also performed in the Capitol – introduced by Senator Sandy Pappas!

After a busy and full day of advocating, Sister Anna Marie Reha from the Diocese of New Ulm lead a closing prayer on the steps of the Capitol.

JRLC constituents, bound together by a common desire to act through personal faith traditions, showed me and the Minnesota State Legislature just how engaged and powerful the faith community can be. As I joke so often around the office – this definitely was the best JRLC Day on the Hill EVER.

-Emily Shimkus, Advocacy Associate

All photos ©Alison Bents

Theatrical Advocacy: iCAN and blank slate theatre's BOTTOM

Logo design by Eponine diatta

Since before I began my year of service with Lutheran Volunteer Corps and JRLC this past August, the Interfaith Children’s Advocacy Network (iCAN) has been working to produce performances of blank slate theatre’s BOTTOM, an original play about the issue of human trafficking in Minnesota. Until this year, I had only heard of this as an international issue – something harming impoverished children in developing countries. I never suspected the prevalence of sex trafficking within our own state.

Amber Cregg and Detective

 

 BOTTOM tells the story of Amber Cregg, a previously prostituted young woman who cooperates with investigative authorities as they search for Coco, an eleven year-old girl who had been trafficked in northern Minnesota. As the play unfolds, the audience learns about the systemic nature of the sex trafficking industry and witnesses its psychological impact on those who become trapped within it. By citing Minnesota-specific trafficking data and casually mentioning cities where trafficking is known to occur, BOTTOM hits home – sex trafficking is a reality, here and now.

Since its first performance at Dreamland Arts in St. Paul, BOTTOM has traveled throughout Minnesota to raise awareness about this critical issue. Each presentation of BOTTOM has been unique, emphasizing different aspects of the story as it translates to new audiences. 

The panel discussion following BOTTOM’s performance at Luther Theological Seminary in St. Paul highlighted the roles that faith communities and clergy can play in fighting human trafficking, and following BOTTOM’s performance in Duluth, people were able to learn about the history of trafficking right in their city. Most recently, BOTTOM was performed in front of its largest audience in Alexandria, MN. It will be ending its fall/winter run with one last performance at the Capitol for JRLC’s Day on the Hill on Thursday, March 13th.   

BOTTOM in Alexandria

BOTTOM at Trepanier Hall in Duluth

BOTTOM at St. John's Episcopal Church in St. Cloud

 

 

 

 

 

 

It has really been incredible to see how BOTTOM has engaged audiences and confronted an issue that largely remains hidden in most communities. Giving people throughout the state the tools and ideas they need to maintain a dialogue about sex trafficking in Minnesota empowers congregations and communities to work through political and social solutions to this harmful practice.

BOTTOM asks, “If the demand for sex trafficking were to end, would the supply end too?” We hope to see BOTTOM continue performing throughout the summer and fall of 2014.  If you or your congregation might be interested in hosting a production anywhere in the state, please contact me at 612-230-3234! As the momentum from this project continues to build and people find strength in advocacy through each other, Minnesota will be able to take concrete steps to eradicate sex trafficking within the state.      

Cast of BOTTOM

-Emily Shimkus, Advocacy Associate                   

Photos from BOTTOM performances: Paul Udstrand

Logo: Eponine diatta

Photos of Local Productions:  Rev. Alison Killeen

Practically Payday Lending

I'll admit it - I am no financial wizard.

Having just finished school and taken my first steps into the real world, I have remarkably limited practical experience with money.  It takes enough mental energy for me to manage my checking and savings accounts, let alone to consider how to make wise financial investments, budget for a future car or housing, and check up on important medical expenses.

This limited grasp of financial reasoning has made it even harder for me to understand how the practice of payday lending actually works.  So there’s this thing called an APR, and it can be as high as 300%?  And people pay fees to take out money for a short period of time?  And the money can be taken out of their paychecks (sometimes even social security and disability checks)?  And how does that even work?  And how exactly does this hurt people? 

I feel more familiar with the practice of payday lending now, a solid six months after I’d been introduced to the issue, but when I first heard about what payday loans were I felt like I was in way over my head. 

People who go in to take out payday loans don’t have the luxury of spending months wrapping their heads around the fees, calculations, and contracts presented to them at a payday lending institution.  They are there because they need short-term credit.  The way the industry currently exists in Minnesota, however, predatorily takes advantage of people’s financial vulnerability. 

I may not be a financial wizard, but that much is pretty clear to me.

This Saturday, January 18th, JRLC and Minnesotans for Fair Lending will be leading a briefing at Mayflower Church in which attendees can actually get some practical experience navigating the mechanics of payday lending.  The event will include a visit to a nearby payday lending institution and learning how to calculate an APR.  I’m excited about this opportunity.  What better way to finally solidify what I have learned about this issue than to go and experience the practice of payday lending first-hand?

-Emily Shimkus, Advocacy Associate

Original Image Source by James Malone

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