Membership Newsletter: July 2012 Edition | Breaking the Cycle of Predatory Lending in Delaware
NCRC member Delaware Community Reinvestment Action Council (DCRAC) is winning victories right in the backyard of payday loan companies. In late June, Delaware Governor Jack Markell signed a piece of legislation aimed at breaking the cyclical nature of payday loans. Under the new law, borrowers are limited to taking out five payday loans of $1,000 or less in any 12-month period, including loan rollovers or refinancing. In addition, the bill will create a database to track the number of payday loans a person has obtained. DCRAC’s Greg Wilson and other proponents said the database, which will be the subject of an annual report by the state banking commissioner, will help identify trends in Delaware’s payday lending industry. “We felt the database would provide legislators and government officials moving forward with the information they need to understand how pervasive payday lending is within the state,” Wilson said.
Congratulations to DCRAC and their community partners. We at NCRC know that DCRAC has worked carefully and diligently to build political and community support for this bill, made all the more challenging by the power wielded by payday lenders in Delaware, many of whom have their national headquarters in the state. Rashmi Rangan, DCRAC’s Executive Director, is an NCRC board member and strong advocate of economic justice nationally as well as within Delaware.
