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Archive for the ‘Predatory Lending’ Category

OTOC meets with 9 area senators in anticipation of 2019 Unicameral session

December 19th, 2018

OTOC leaders are meeting with Omaha-area Unicameral senators. In October, we hosted a Candidate Accountability Session for candidates from districts 6, 8, 12, and 20. (Click here to learn more). Those candidates committed to meeting with OTOC leaders to follow up on their commitment to action.

Leaders are now following up with the victors from those districts, plus other area senators about priorities in the upcoming session.

Senators meeting with OTOC:

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225 OTOC leaders meet with Unicameral Candidates from 4 Districts

October 23rd, 2018

Over 225 OTOC and community leaders from 25 congregations and community organizations met with 7 candidates for the Nebraska Unicameral on Monday, October 22.  OTOC leaders told compelling stories about five issues which they are working on through OTOC Action Teams. They asked candidates for specific commitments on:

  • Adopting a state law requiring rental property registration & inspection if the City of Omaha is unable to adopt adequate protections;
  • Fully funding the  state portion of expanded Medicaid when  Initiative 427 passes;
  • Improving mental health care in our state prisons and in the community;
  • Adopt state strategies to battle climate change;
  • Continue reforming Payday lending. 

Scorecard of candidate responses

Click for a copy of the questions OTOC leaders asked: Final Questions for October 22 Session with Unicameral candidates

Twenty different OTOC and community leaders told stories, asked questions or served as chairs OTOC Agenda with speakers for Oct 22 2018

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June Issue Cafes at Urban Abbey

May 30th, 2018

A few months a year, the Urban Abbey, a coffe shop/bookstore/Methodist Congregation partners with OTOC as community partners. As community partners in June, OTOC receives 10% of the coffee bar sales in the month as well as hosts learning opportunities at the Abbey. This June was OTOC’s second Urban Abbey month of the year, and OTOC action teams hosted four great Issue Cafes to learn more about some issues they are working on.

How we can change the Narrative for Substandard Rental Housing on June 5

 

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Pay Day Lending Reform has small victory this Legislative Session

April 25th, 2018

The OTOC Predatory Pay Day Lending Action Team has worked on reforming predatory lending in the last year by informing community members about the

Concerns about the ill effects of the payday loan industry on folks in Nebraska brought a dozen guests from 4 OTOC congregations to the home of Chuck and Gloria Austerberry in Legislative District 8. All were eager to understand how the system works and what we can do to limit how much profit can be made from people needing small amounts of money to meet emergency needs through passing LB 194 this session of the Unicameral.

debt trap that often happens when people take out predatory loans, and by promoting LB 194, Senator Tony Vargas’s pay day lending reform bill that was introduced to the Nebraska Unicameral in 2017 and didn’t make it out of committee until 2018. Through several house meetings and community education events, OTOC leaders explained why there needs to be limits on pay day loans- that people get stuck in a dept trap paying fees and never getting to pay off the principle. The community members who attend these events were encouraged to contact their state senators, especially those on the banking and finance committee, and encourage the elected officials to get LB 194 out of committee. LB 194 originally set limits on the amount of interest that could be incurred and would allow borrows to pay back the loans in partial payments rather than requiring the full value of the loan for repayment.

An amended version of LB194 was passed this unicameral session. This final version did not include a cap on fees and is just a small step in the right direction, but it is a step. More transparency is now required before someone agrees to the loan so they see a clear total on what they will be paying. There is also an option for borrowers to request an extended payment plan once every twelve months that would allow them to make smaller payments rather than pay the full cost at one time. The bill that passed also requires more reporting by lenders to the state Director of Banking and Finance. To read more about what the final version of LB194 does, click here.

Thank you to all leaders who attended house meetings or learned about the issue and contacted their senators.

Urban Abbey events in February encourage Leaders to get politically active

March 5th, 2018

 

 

 

Urban Abbey hosted three different Issue Cafes in the Month of February for OTOC Leaders and community members learn more about relevant issues happening in Omaha.

Michael O’Hara from the Sierra Club (pictured left) spoke about the logistics of the city’s upcoming solid waste policy. Why do we need to care about the trash system? 1. It really affects the environment- methane outputs from landfills, trash trucks driving around, etc. 2. How many trash bins fit in your garage- we would like choices about what size and how many bins each household needs. The OTOC Environmental Sustainability Action Team urges citizens to contact their city council members to ask for community involvement in the planning process and for the council to be engaged and aware when reviewing and choosing a proposal. For talking points about how to contact your city council members, click here

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Pay Day Lending house meetings make a difference

January 31st, 2018

Leaders from OTOC’s Predatory Lending Action Team have been leading house meetings about LB194, a Nebraska Unicameral Bill that would put some regulations on predatory pay day lending (see below for details about LB194). The house meetings are focused on Legislative District 8, where Senator Burk Harr was just appointed to the Banking committee for this legislative session after the previous Senator Craighead from District 6 resigned from her position. Burk Harr has just become the swing vote needed to get the helpful LB194 out of committee. The timely house meetings invited participants to email or call Sen. Harr encouraging him to vote yes for LB194. Dozens of OTOC leaders have called or written in, and Harr is reported to have changed a probable “no” vote into a “still considering” stance. 

Concerns about the ill effects of the payday loan industry on folks in Nebraska brought a dozen guests from 4 OTOC congregations to the home of Chuck and Gloria Austerberry in Legislative District 8. All were eager to understand how the system works and what we can do to limit how much profit can be made from people needing small amounts of money to meet emergency needs through passing LB 194 this session of the Unicameral.

Concerns about the ill effects of the payday loan industry on folks in Nebraska brought a dozen guests from 4 OTOC congregations to the home of Chuck and Gloria Austerberry in Legislative District 8 on January 27. All were eager to understand how the system works and what we can do to limit how much profit can be made from people needing small amounts of money to meet emergency needs through passing LB 194 this session of the Unicameral.

LB 194, sponsored by Senators Vargas (D) and Linehan (R), improves Pay Day Lending practices by requiring:

1.      Reasonable Payment: Maximum monthly payment is capped at 5% of borrower’s Gross Income—so the monthly payment is manageable and the debt is fully repayable over a longer period of time.

2.      Reasonable Charges: Total charges for the loan can only equal 36% annual interest AND the monthly maintenance fee is proportional to the size of the loan and cannot exceed $20 per month.

3.      Reasonable Total Expense to Borrower: Maximum total charges can be no more than 50% of the principal over the life of the loan (e.g. total charges for a $500 loan would be $250 over the life of the loan.)

If you would like to be a part of the efforts to get LB194 through committee, please call or email Sen. Burk Harr at   (402) 471-2722 or bharr@leg.ne.gov urging him to vote “yes” for the bill to get it out of committee.                                                                                                                           

If you contact Sen. Harr, please let us know by emailing otocfornebraska@gmail.com.

If you are interested in attending a house meeting, please email Vicki Pratt at vlpratt@cox.net 

 

 

Immigration, Mental Health, and Predatory Lending Advocacy at City Council

November 22nd, 2017

In the past two months, OTOC Action teams have been present in city council meetings to testify on different issues.

OTOC adds support to City Council Resolution to tell Congress to act swiftly for DACA Dreamers

On October 17th, Jean Reiner of St. Stephens and the Immigration and Refugee Action Team testified about a Resolution for Omaha City Council to urge Congress to act swiftly on behalf of Dreamers and create a plan to protect DACA recipients. The Council voted in favor of the resolution after OTOC and many other individuals and organizations testified in favor of the resolution and City Council’s support of people in Omaha with DACA status. City Council passed the Resolution with five in support, two passing.

Jim Morely at City Council

Jim Morley testifying at he City Council meeting

OTOC and Allies get unanimous City Council support on Pay Day Lending and Mental Health

Omaha City Council  voted 7-0 on Tuesday Nov 21 to support LB 194 or similar legislation to better regulate Pay Day Lending. CM Pete Festersen introduced the resolution for the City to include this support in their  Priority for the 2018 Unicameral Session.  Jim Morely of Urban Abbey and the OTOC Predatory Lending Team testified that OTOC has ahad several house meetings in the last month and an Issue Cafe at Urban Abbey last Friday, all about Pay Day Lending. He said that over 90 people have attended these sessions and most were amazed that lenders are permitted under Nebraska law to charge so much in fees and interest and to trap borrowers in a cycle of debt. 

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