Support responsible, Indiana-based lending to better serve Hoosiers. Vote YES on SB 352!
As Indiana continues to emerge from nearly two years of coping with COVID-19 and its health and economic impact, legislators are faced with a second issue that affects constituents: the price of everything is going up. Whether it is due to supply chain issues, international politics or labor shortages, your constituents, who may have experienced economic hardship, are now paying the price for the restart of the national economy as well.
Indiana’s credit options are limited because of laws that exclude some Hoosiers’ access to credit.
Many Hoosier families find themselves squeezed financially just as they were looking forward to the light at the end of the tunnel. Until full recovery reaches all families in all corners of Indiana, many of your neighbors need access to safe, affordable, predictable credit on a short-term basis.
Fortunately, a solution exists that will allow more Hoosiers to access safe, affordable credit while also providing revenue to the state, creating good jobs and conforming Indiana’s lending laws to market-based competition.
Indiana can promote safe, affordable credit
By voting YES on SB 352, leaders in our state can modernize state laws and allow a flat 36% rate cap for consumer loans.
Currently, lending rates can be confusing for Hoosiers. The rates can vary broadly depending on a complicated formula that leaves many Hoosier families wondering where they stand. Can they borrow money short term at affordable rates or not?
A flat rate will help simplify the credit application process, providing predictability and security for Hoosiers and their families. It will also improve their path to better credit scores, which are essential to accessing financial options and stability.
Predictable rates will also allow the lending community to invest in Indiana’s future, producing more local jobs and enhancing Indiana’s already stellar reputation as a business- and family-friendly state.
It is important to note that ALL current consumer protections will be preserved. As a legislator, your ability to regulate the in-state lending industry is also protected. And you will be encouraging the in-state lending industry to continue to grow, rather than giving advantage to out-of-state, online unlicensed lenders who are beyond your regulatory reach.
The largest in-state, responsible lender is OneMain Financial.
As an Indiana-based company with 56 branches from Carmel to Clarksville, Evansville to Huntington, OneMain proudly counts approximately 88,000 Hoosiers among its customers with an average loan of $9,000. That average amount is enough to get most Hoosiers through short-term financial challenges.
Updating Indiana’s lending laws will remove the current disincentive to locate in Indiana and will incentivize lenders to hire more talented Hoosiers.
OneMain employs 1,400 people and pays Indiana taxes. Wouldn’t you as a policymaker lean into encouraging Indiana-grown companies rather than companies whose people you cannot look in the eye and take their measure?
The unregulated, uncapped online lending industry is booming
An unintended effect of Indiana’s current lending laws is that Hoosiers who do not qualify for affordable in-state rates are forced into the online lending market, which is usually both uncapped and unregulated by Indiana policymakers and regulators.
There are reasonable, safe, affordable options
The key is a partnership between responsible Indiana-based lenders and Indiana policymakers and regulators. In-state lenders have your constituents’ best interests in mind. It does not do anyone any good to lend money that cannot be repaid in an affordable manner. That is why we have strict “ability to repay” underwriting rules that ensure Hoosiers get the short-term loans they need without long-term burden. It is like your interest in making sure that state fees and taxes do not harm the constituents you serve.
We also are committed to providing clear, understandable consumer tips and education.
1 A Loan You Can Afford
Your loan will have an affordable monthly payment that fits your unique situation and household budget.
2 Easy to Understand Pricing and Terms
We will help you understand every aspect of your loan before you sign, including terms, pricing and interest rate, monthly payment, and total cost.
3 No Pressure and Fair Treatment
You can choose to buy optional products such as insurance to help you through unexpected events. Your choices will be made in a pressure-free environment and have no bearing on your loan approval. You can get a full no-questions-asked refund of your purchase of any of these products within the first 30 days and a pro-rated refund at any time.
4 Customer Satisfaction Guarantee
We will try our best to answer your questions and resolve your concerns. If you are unsatisfied with your loan for any reason, you can return the proceeds within seven calendar days and cancel your loan.
5 Help When You Need It
Life brings unexpected events and challenges, and we will work with you on repayment options if your situation changes.
The bottom line
We can do this together. By updating Indiana’s lending laws, Hoosiers will have greater access to borrowing options, carefully supervised by the in-state lending community and Indiana’s regulators and policymakers. Access to affordable, safe, predictable credit will grow. And Hoosiers will be able to pursue their dreams with confidence. Join us.