Children thrive in stable, loving and nurturing homes. A stable, loving home life provides the family anchor we need to do well in school and work. Unfortunately, domestic violence disrupts this stability, taking a toll on family members’ physical and mental health. It also threatens the economic security of its victims. Domestic violence is prevalent in every community and affects all people regardless of age, socioeconomic status, sexual orientation, gender, race, religion, or nationality. Without adequate resources, however, people with low or no incomes are especially vulnerable.
The Ohio Poverty Law Center is breaking down barriers victims of domestic violence face when they turn to the courts for protection and support.
OPLC Advocacy Publications and Information
Payday and Car Title Lending
In the payday and car title loan market, borrowers’ and lenders’ interests are not aligned because profitability for lenders depends on loans being unaffordable for borrowers. Although lenders advertise these loans as important credit for meeting life emergencies, studies show that typical borrowers are low income workers who are struggling to make ends meet. Over 50% of title loan borrowers have trouble meeting living expenses at least half of the time. Nearly 70% of payday customers use loans to pay recurring monthly expenses. The failure to account for borrowers’ abilities to repay combined with the preferred pay status conferred by a security interest in the family’s car title or checking account pressure borrowers to re-borrow. In this misaligned marketplace, lenders, who compete on convenience, customer service and speed, not loan pricing, charge the maximum permissible rates and have no incentives to lower costs or pricing. Paying back these expensive credit products prevents hard-working, cash strapped families from building the assets necessary to stabilize their families’ economic health and well-being.
The Ohio Poverty Law Center is working to build reasonable regulations and effective consumer protections for these small dollar financial products, and stop the third party lending model that skyrockets the cost of these loans in Ohio.
Advocacy Information and Publications