The Midas Collaborative (Midas) and other consumer advocates and community organizations submitted comments to the Consumer Financial Protection Bureau (CFPB) that support the rule to regulate the high-cost loan industry, also known as “payday lenders”. As a strong consumer-protective state, Massachusetts does not have a preponderance of these short term loans that target low income residents and military families. However, current state regulations could be threatened by changes in national regulation, so the strongest possible federal rule is supported by Midas. Payday loans cost consumers up to 300% in interest and fees for loans as low as $300.
As one of the few states without payday lenders, Midas recognizes the importance of strong regulations against predatory lenders who essentially trap vulnerable residents in insurmountable debt. The rule is a critical step in stopping the harmful effects of unaffordable loans, but it must be strengthened to ensure it stops the debt trap for low-wage workers across the state. The current Massachusetts statute, known as the Small Loan Law, caps interest rates at 23%, effectively banning payday lending within the state. This protects consumers’ income and reduces their exposure to abusive debt collectors, as outlined in Midas’ “Massachusetts Debt Trap” report.
Read the full press release here.
Join us on Tuesday, November 15th for
The Midas Collaborative’s Assets and Opportunity Reception
5:00-6:30pm at John Hancock Financial
601 Congress Street, 4th Floor Atrium, Boston, MA 02210
Our annual event is a celebration of the successes of our member collaborative from the past year and recognition of champions within our field including the 2016 Assets & Opportunity Champion Senator Jamie Eldridge.
This year’s event will also honor our founding executive director, Margaret Miley, usher in new leadership for Midas with new executive director Pam Hoffman, and share our vision to advance financial security. Don’t miss out as stakeholders network, share best practices, and collaborate to increase the economic stability of Massachusetts residents. Register here.
Interested in sponsoring the event? Explore sponsorship opportunities here.
Join us on Tuesday, September 13th at 10am-12 noon at Boston Private Bank at 10 Post Office Sq in Boston. Hope to see you there.
• Introductions including Midas’ new Executive Director
• Presentation with member organization Empath on Cliff Effects
• Issues Facing Our Clients and Potential Solutions
• Midas Member Forum – Share program updates, upcoming events, opportunities to collaborate, etc. with our new ED
Studying impact, innovating asset-building, and increasing economic development; it’s what we do. Midas procured a longitudinal evaluation of our program that increases household financial security through the expansion of microenterprise. Over 300 participating businesses were studied, showing that cultivating diverse, low income entrepreneurs with long-term support, training, and capital --not debt-- is highly effective in increasing income and assets. Read overall outcomes and perspectives from individual businesses in the Executive Summary and Full Report.
Want to see our impact? See our most recent Impact Report.
Thank you to everyone who helped make the day great by sharing your knowledge and experience as we continue to build financial foundations. A few resources from the Summit to use in your work; 1. Presentations from Track 2 of Breakout Sessions one and two, 2. Updated MassSaves.org website, which includes a plethora of vetted sites and information, and 3. Jacqueline Prester's presentation from the Jump$tart/Fidelity Investment track. Check out photos from the day on The Midas Collaborative Facebook page.
We had a great time at the Assets & Opportunity Breakfast, the Assets & Opportunity Breakfast in October. The Breakfast was an opportunity for nearly 100 stakeholders to share best practices, learn about new initiatives and network. Senator Sonia Chang-Diaz moderated the “What Does it Take to Increase Financial Security & Resiliency in Massachusetts?” panel with Assets & Opportunity champions Lew Finfer of the Raise Up Mass coalition, and Jeff Fuhrer representing The Federal Reserve Bank of Boston.
A special thanks to our sponsors:
Boston Private Bank & Trust
Cambridge Savings Bank
United Way of Massachusetts Bay and Merrimack Valley
Capitol One Bank
Non-Profit Asset Leaders
Crittenton Women's Union
Center for Responsible Lending
Center for Enterprise Development
Metro Credit Union
United Way of Pioneer Valley
East Boston Savings Bank
Jewish Vocational Services
Metropolitan Boston Housing Partnership
Do you know people who are struggling with their finances? Send them to MassSaves.org for on-line resources and free personal financial coaching! The Financial Confidence & Coaching Program helps residents from all over Massachusetts get consumer information and high-quality individual help. Read a White Paper on our approach.
Financial Coaching Hotline: 855-721-7575