On November 5, 2019, Matt Hull, Executive Director of the Texas Association of CDCs, and A&O Steering Committee Member Marie Morse, Executive Director of Homestead Consulting Services, hosted a joint webinar focused on exploring alternatives to payday lending.

Over the course of the hour-long webinar, Matt and Marie discussed the payday lending debt trap many vulnerable consumers fall victim to, as well as what your organization can do to bring an alternative — the Community Loan Center — to your community.

To view the webinar, click here. To learn more about the Community Loan Center of Indiana, click here or contact Logan Charlesworth.

According to data collected by USA Today from RedFin, median-income black families could only afford 25 percent of U.S. homes for sale in 2018, down from 39 percent of homes on the market being within reach in 2012.

RedFin contributes the drop to multiple factors, including rising average mortgage interest rates (3.35 percent in 2012 compared to 4.54 percent in 2018); increasing demand for homes due to a strong economy; and developers constructing increasingly expensive homes to offset the cost of rising land, labor, and material costs.

To read the full article, click here.

The Asset Funders Network’s new report, “When A Job Is Not Enough: Employee Financial Wellness and the Role of Philanthropy,” delves into the financial hardships and stresses experienced by workers across the nation. According to the report:

• Nearly half of employees lack emergency savings, and find it difficult to cover their expenses and pay their bills;

• More than 50% of employees say they are somewhat or very stressed about their finances; and

• One third of employees say they are less productive at work because of their financial stress.

To read the full report from the Asset Funders Network, click here.

As part of its ongoing series about building an inclusive, thriving workforce, the Indiana Institute for Working Families released a policy brief focused on equity-focused career counseling. While established barriers standing in the way of marginalized communities have been dismantled, the brief highlights the forms of occupational segregation that still exist.

In Indiana, 12 of the 25 occupational groups tracked in the American Community Survey are so segregated as to be considered “non-traditional” for one gender.

To read the full report, including IIWF’s policy recommendations, click here.

It seems like every month has a different designation to raise awareness: for example, September is recognized as Cholesterol Education Month, International Square Dancing Month, National Cheese Month, and National Head Lice Prevention Month, to name a few. However, one awareness "month" near and dear to my heart doesn't span the course of a traditional month, choosing instead to extend from September 15 through October 15: Latinx Heritage Month.

With the name "Logan Charlesworth," I'm typically mistaken for an older Caucasian male rather than recognized as a 20-something half-white, half-Latinx woman. Growing up in a multicultural home, my parents did everything in their power to blend each parents' heritage into every holiday, creating an entirely new and wholly unique tradition for my sister and I to pass down to future generations. Even when I was bullied by fellow classmates in a predominantly white school for "not being white enough," hearing racial slurs on a near-daily basis, or being questioned as to why I didn't look like my mom's side of family whenever they attended school events, I was proud of being part of the tight-knit Latinx community.

However, as I grow older and dig deeper into asset development, I've noted a disturbing trend: Latinx communities are often left behind in vital conversations about assets and opportunity. According to UnidosUS, Latinx people make up 17 percent of the US population, but only possess two percent of the nation's wealth. According to a 2016 Prosperity Now study, the median Latinx family's wealth amounted to $6,400. The median White family's wealth amounted to $140,500. Furthermore, in the Financial Drain reportrecently released by the Network and the Indiana Institute for Working Families, we now know that predatory lenders typically set up shop inneighborhoods that are predominantly Black and/or Latinx. 

To be frank, I'm outraged and hurt by all of this information. Latinx populations play a vital role in keeping our nation on track economically. According to a 2017 New American Economy study, businesses with a majority Latinx ownership provided almost 2.7 million American jobs. Additionally, Latinx families contributed nearly $215 billion in tax revenue. Beyond economics and finances, we also add to the rich cultural fabric of this nation and state through language, music and art, food, and more.

Given these economic and cultural contributions to our communities, it's important -- and I would argue vital -- to have Latinx voices at the table when discussing and advancing asset development strategies. 

Together, we can close these inexcusable economic gaps and ensure the Latinx heritage is one of prosperity and inclusive growth.

Dear Director Kraninger,

We are contacting you in regards to the CFPB’s proposed rule on the Fair Debt Collection Practices Act (FDCPA). Thank you for the opportunity to submit comments on this matter. The Fair Debt Collection Practices Act is critical to protecting consumers across the nation from abusive collection practices. However, we believe the newly proposed rule would protect debt collectors more than everyday American consumers. We urge the CFPB to protect consumers by promoting fair debt collection practices.

According to the National Consumer Law Center, the median debt owed by Hoosiers is $1,509; the majority of debt is related to medical expenses or student loans. In Indiana, 34 percent of all Hoosiers have a debt in collections. This figure balloons to 56 percent of Hoosiers with a debt in collections when viewed through the lens of those living in communities of color.

In 2016, your office fielded 8,348 complaints by Hoosiers regarding abusive debt collection practices, including (but not limited to) calling after receiving a “stop calling” notice; repeated calls; making false representation about debts; failing to identify self as a debt collector; falsely threatening illegal or unintended act; and more.

Given the fact that Indiana's current laws do not provide sufficient protections against predatory debt collection practices, we implore the CFPB to protect consumers by shielding them from abusive practices. A revised rule that aims to protect consumers would: limit the number of calls and texts received by consumers from collectors; provide clear delinquency notice to consumers; and reduce the number of harassing messages from collectors.

Thank you for the opportunity to comment. For further clarification on these comments, please contact Logan Charlesworth, Indiana Assets & Opportunity Network Manager, at lcharlesworth@prosperityindiana.org or (317) 520-1546.

Sincerely,

Indiana Assets & Opportunity Network (Indianapolis)

Prosperity Indiana (Indianapolis)

Fair Housing Center of Central Indiana (Indianapolis)

Marion County Commission on Youth, Inc. (Indianapolis)

Homestead Consulting Services (Lafayette)

Lisa Laflin/West Indianapolis Development Corp. (Indianapolis)

Habitat for Humanity of Indiana (Indianapolis)

Indiana Association of Area Agencies on Aging (Indianapolis)

Indiana Institute for Working Families (Indianapolis)

Citizens Action Coalition of IN (Indianapolis)

Indiana Coalition Against Domestic Violence, Inc (Indianapolis)

Mark A. Russell/Indianpolis Urban League (Indianapolis)

Glenn Tebbe/Indiana Catholic Conference (Greensburg)

Barbara Bolling-Williams/Indiana State Conference of NAACP (Gary)

BG James L. Bauerle/The Military / Veterans Coalition of Indiana (Carmel)

Rev. Soozi Whitten Ford/American Baptist Churches of Indiana & Kentucky (Greenwood)

Megan Miller/Providence Housing Corporation (West Terre Haute)

Steve Morrison/StarkePulaski Habitat for Humanity, Inc. (Winamac)

Mark Lindenlaub/Thrive Alliance (Columbus)

Lisa Wilken (Westfield)

Joel Zwier (Goshen)

Kaytlin Eastes (Indianapolis)

David B Menzer (Indianapolis)

Catherine Vest (Indianapolis)

Mark Tarpey (Indianapolis)

Steven A. Bramer, Jr. (Hammond)

Kathryn Thompson (Bloomington)

Cynthia J. Benedict

Jane Stowe

Chris Kerstiens

In 2002, the Indiana General Assembly granted payday lenders an exemption to Indiana’s criminal loansharking statute, which sets a maximum annual percentage rate (APR) of 72 percent. Today, 262 payday loan storefronts make small loans with rates up to 391 percent APR in Indiana.

KEY FINDINGS:

• Eighty-six percent of payday storefronts are operated by out-of-state parent companies.

• Storefront payday borrowers have a median annual income of $19,752 and borrow an average of eight to 10 loans per year.

• Over the past five years, payday lenders have drained an estimated $322,049,432 in finance charges from these Hoosier borrowers.

• Payday storefronts in Indiana are disproportionately located in lower-income neighborhoods and communities of color.

• If this debt had been financed at 36% APR, these Hoosier borrowers and their communities could have benefited from an additional $291,307,803 over the past five years to spend in their local economies.

To read the full report,click here.

According to the US Census Bureau, poverty rates across the nation declined, finally falling below the pre-recession rates achieved in 2007. Furthermore, the median income for full-time, year-round workers rose by three percent. However, these positive gains were not experienced by all Americans.

In addition to a rising number of uninsured people - including 4.3 million children - one in eight Americans are living below the poverty line (38.1 million people). The wealth disparity between races was also apparent, with the median income for Black families being nearly $30,000 lower than the average white family (Black families earn a median income of $41,361, while white families earned $70,642).

To read a fully summary from NPR,click here.

September is Workforce Development Month. I recall my first visit to the local office of Massachusetts Employment Security in 1970.  I was greeted by a pleasant man in a bow tie who riffled through a stack of index cards as he talked to me, trying to find suitable job matches for a college kid whose only work experience had been newspaper delivery and sweeping floors in high school. Several places turned me down, but my counselor was very encouraging and with his help I finally found a summer job. I will always be grateful to that kind and patient public servant whose name I do not remember but whose efforts helped me to earn the money I needed to finish school. 

While American Job Centers (as they are called today) are models of modern technology, with instant access to search tools and worldwide information about the labor market, they haven't greatly improved on the efforts of that lowly state employee with his index cards back in 1970.  Nevertheless, Indiana is trying to be responsive to the changing needs of 21st century job seekers.  TheWorkforce Ready Grant funds training for jobs in high-demand fields, covering tuition and fees for qualifying certifications.  Job seekers may apply on-line or visit a local American Job Center, known asWorkOnehere in Indiana.  Indiana’sAdult Education providers blend high school diploma and equivalency classes with job training.  Some of these providers partner with local community-based organizations. For example, in Indianapolis, theBridges to Career Opportunitiesprogram, funded by the Local Initiatives Support Corporation, serves low-wage job seekers with a range of education and job training  services on a financial coaching platform designed to help families grow assets and become financially stable.

So much of this work depends on the skills and dedication of people on the front lines. In observation of Workforce Development Month, I ask friends and colleagues to honor the efforts of workforce development professionals everywhere who provide help and guidance to those who work for a living and who seek a better life for themselves and their families.

Tom Orr is a Senior Program Officer at LISC Indianapolis. He serves as an A&O Steering Committee Member.

According to a new study published by researchers from the Brookings Institution, Harvard’s Kennedy School of Government, and Johns Hopkins University, Millennials are at a distinct disadvantage when it comes to retirement savings.

While, as a group, Millennials are far more educated than any other generation in history, they also possess more student debt than previous generations. The overwhelming burden of student loans and a rocky economy when many were graduating college has led to lower net-worth value and a hesitancy to contribute to retirement savings programs (should they be available through their employer).

To read the full report,click here. To read MarketWatch’s summary of the report,click here.