29 Mar New Coalition Launched to Drive Safer Lending Nationwide
WASHINGTON D.C., MD — Today, a group of community organizations, advocacy groups, local banks and credit unions, charitable groups, and religious organizations joined together to launch a new national organization, designed to help those in financial need. The Coalition for Safe Loan Alternatives (CSLA) will be a centralized hub for best practices around community-based lending so that people have options when it comes to borrowing money and don’t have to get trapped in dept.
“Community organizations across the United States are already working on safe loan alternatives, but they don’t always know how to reach those in need and scale those efforts. And those in need often don’t know those alternatives exist. We want to provide a platform on a regional and national scale to connect consumers in need to those organizations providing better financial choices,” said David Rothstein, chair of CSLA. “If we can come together and share insights, we can find and develop better alternatives. The goal of this coalition is to serve as that forum.”
According to a recent survey released by Bankrate.com, 63 percent of Americans can’t handle an unexpected financial emergency of $1,000 – such as a car repair or medical co-pay. For the 26 million people nationwide with poor or limited credit, the options have often been limited. Many become trapped in a cycle of debt, paying more than 400 percent APR on payday loans or risking their car title for a few hundred dollars. These consumers end up paying more in interest and fees than what they originally borrowed, because they didn’t know about any alternative choices.
The focus of the new CLSA is to identify and share information about better choices with low interest rates that are not lump sum, two-week loans. The coalition is taking immediate action to assemble a team of organizations and individuals nationwide who are committed to helping people in need find affordable, responsible and safe financial assistance.
The heart of the coalition is people in communities with their fingers on the pulse of what real people are experiencing — and how they are searching for solutions when unexpected financial needs arise. Local organizations will act as incubators for emerging alternative loan programs and provide feedback for replicating successful programs in other markets.
With the CSLA as their megaphone, the valuable insight generated in local communities can be elevated to a national forum, where other passionate people are discussing the same issues plaguing communities, and actively looking for alternative solutions.
The central hub for CSLA is safeloancoalition.com, where an ever-growing library of carefully curated seminars and webinars will be available to members. The content is designed to inspire conversations among organizations and individuals, and to provide a variety of resources to take action and get involved.
While coalition members will be major contributors to the conversations, the coalition will invite lending experts, government officials and others to provide specific feedback and new ideas to encourage innovation in solutions. Cultivating a neutral environment will encourage honest conversations and constructive criticism for any available products and services for commercial payday-loan alternatives.
David Rothstein, Director of Resource Development at Neighborhood Housing Services in Cleveland, Ohio, will act as chair for the CSLA.
Members of the coalition include:
- Family Policy Institute of Oklahoma
- Bonnie Warren, ComfortKeepers, Ohio
- Employee Loan Soliutions, San Diego
- Ona Porter; Prosperity Works New Mexico
- Stephen Fischmann; New Mexico Fair Lending Coalition
- Patti Ferguson-Palmer; President, Tulsa Classroom Teachers Association
- Sunrise Bank, St. Paul MN
- Jack Hiatt; attorney, Santa Fe
The Coalition for Safe Loan Alternatives (CSLA) is a national forum for organizations and individuals committed to finding and promoting safe small dollar lending alternatives. Members of CSLA are organizations for financial literacy, community banks, local credit unions and local community-driven organizations. CSLA will provide educational resources, opportunities for discussion and financial educational resources on a national and local level through webinars, seminars and discussions. For more information visit safeloancoalition.com
Article Link: https://www.cuinsight.com/press-release/new-coalition-launched-drive-safer-lending-nationwide