Combating the Combating the ‘Nasty Niners’‘Nasty Niners’

What’s happening in WA What’s happening in WA StateState

Danielle FriedmanDanielle Friedman

Statewide Poverty Action NetworkStatewide Poverty Action Network

The High Cost of Being Poor in The High Cost of Being Poor in Washington StateWashington State

► Information compiled through Information compiled through focus groups and a focus groups and a community survey community survey throughout WAthroughout WA

► Findings and policy Findings and policy recommendations released in recommendations released in a reporta report

► Focuses on four topics: Food, Focuses on four topics: Food, Transportation, Financial Transportation, Financial Services and HousingServices and Housing

► Being used locally in Being used locally in communities to educate communities to educate lawmakers and further policy lawmakers and further policy agendasagendas

Ways to use the report Ways to use the report locallylocally

►Hold a community event highlighting Hold a community event highlighting what is happening locallywhat is happening locally

►Set up one-on-one meetings with families Set up one-on-one meetings with families and lawmakersand lawmakers

►Meet with local editorial boards and press Meet with local editorial boards and press

►Be creative- Connect the report to issues Be creative- Connect the report to issues and events happening in your areaand events happening in your area

Alliance to Prevent Predatory Lending

endorses the passage of fair and reasonable consumer protections on

predatory lending that will reduce poverty and create safer and stronger communities in Washington State.

►

www.noloansharks.orgwww.noloansharks.org

AARP of WashingtonAARP of WashingtonACORN HousingACORN HousingACORN of Washington StateACORN of Washington StateAmer. Fed. of Government Employees Amer. Fed. of Government Employees

31973197Amer. Fed. of Teachers 1789Amer. Fed. of Teachers 1789Asian Counseling and Referral ServiceAsian Counseling and Referral ServiceAsian Pacific American Labor AllianceAsian Pacific American Labor AllianceAsian Pacific Islander CoalitionAsian Pacific Islander CoalitionAssociated Ministries of Pierce CountyAssociated Ministries of Pierce CountyCASA LatinaCASA LatinaCatholic Community Services of W. WACatholic Community Services of W. WAChildren’s AllianceChildren’s AllianceChurch Council of Greater SeattleChurch Council of Greater SeattleCoalition of Labor Union WomenCoalition of Labor Union WomenConsumer Credit Counseling Svs of Consumer Credit Counseling Svs of

YakimaYakimaCouncil on Aging and Human ServicesCouncil on Aging and Human ServicesDavid Della, Seattle City David Della, Seattle City

CouncilmemberCouncilmemberDept. of Def., Defense-State Liaison Dept. of Def., Defense-State Liaison

OfficeOfficeSolid GroundSolid GroundJean Godden, Seattle City Jean Godden, Seattle City

CouncilmemberCouncilmemberLarry Gossett, King County Larry Gossett, King County

CouncilmemberCouncilmemberHunger & Nutrition CoalitionHunger & Nutrition CoalitionInternational District Housing AllianceInternational District Housing AllianceIntercommunity Peace and Justice Intercommunity Peace and Justice

CenterCenterLeague of Women Voters of League of Women Voters of

WashingtonWashingtonLegacy of Equality, Leadership andLegacy of Equality, Leadership and

Organizing (LELO)Organizing (LELO)Low-Income Housing InstituteLow-Income Housing InstituteMike Lowry, Former WA State GovernorMike Lowry, Former WA State GovernorLutheran Public Policy Office of WA Lutheran Public Policy Office of WA

StateStateMartin Luther King, Jr. County Labor Martin Luther King, Jr. County Labor

CouncilCouncil

Metropolitan Development Council Metropolitan Development Council - Tacoma- Tacoma

Military Officer’s Association of Military Officer’s Association of AmericaAmerica

Minority Exec. Director’s Coalition Minority Exec. Director’s Coalition (MEDC)(MEDC)

National Association of Social National Association of Social Workers WAWorkers WA

National Council of Jewish Women- National Council of Jewish Women- Seattle SectionSeattle SectionNational Military Family AssociationNational Military Family AssociationNext Church, Tacoma WANext Church, Tacoma WANorth Columbia Community Action North Columbia Community Action

CouncilCouncilNorthwest Progressive InstituteNorthwest Progressive InstituteNorthwest Women’s Law CenterNorthwest Women’s Law CenterOffice & Professional Empl. Int’l Office & Professional Empl. Int’l

Union 8Union 8One AmericaOne AmericaOpportunities Industrialization Opportunities Industrialization

Center – WACenter – WAPantry Shelf of Walla WallaPantry Shelf of Walla WallaMario Paredes, Consejo Executive Mario Paredes, Consejo Executive

DirectorDirectorPierce County Asset-Building Pierce County Asset-Building

CoalitionCoalitionPierce County Human Service Pierce County Human Service

CoalitionCoalitionLua Pritchard, Korean Women’s Lua Pritchard, Korean Women’s

Assoc. Progressive MajorityAssoc. Progressive MajorityPuget Sound Alliance for Retired Puget Sound Alliance for Retired

AmericansAmericansPuget Sound Naval Bases Puget Sound Naval Bases

AssociationAssociationTom Rasmussen, Seattle City Tom Rasmussen, Seattle City

CouncilmemberCouncilmemberReal ChangeReal ChangeRetired Public Employees Council, Retired Public Employees Council,

Chapter 3Chapter 3Rural Resource Community ActionRural Resource Community ActionSeattle/King Cty Asset Bldg Seattle/King Cty Asset Bldg

CollaborativeCollaborativeSeattle Women’s CommissionSeattle Women’s CommissionService Employees Int’l Union 775Service Employees Int’l Union 775Service Employees Int’l Union WA Service Employees Int’l Union WA

State CnclState CnclRon Sims, King County ExecutiveRon Sims, King County Executive

South Sound Outreach ServicesSouth Sound Outreach ServicesSpokane Regional Labor CouncilSpokane Regional Labor CouncilStatewide Poverty Action NetworkStatewide Poverty Action NetworkTacoma GoodwillTacoma GoodwillThe Military CoalitionThe Military CoalitionUnited Food & Commercial Workers 21United Food & Commercial Workers 21United Indians of All Tribes FoundationUnited Indians of All Tribes FoundationVOICES, SpokaneVOICES, SpokaneWashington Association of ChurchesWashington Association of ChurchesWashington Community Action NetworkWashington Community Action NetworkWashington Fed. of State Employees 304Washington Fed. of State Employees 304Washington Food CoalitionWashington Food CoalitionWashington Homeownership CenterWashington Homeownership CenterWashington Low Income Housing AllianceWashington Low Income Housing AllianceWashington Responsible Lending CoalitionWashington Responsible Lending CoalitionWashington State Asset Building CoalitionWashington State Asset Building CoalitionWashington State Building & ConstructionWashington State Building & Construction

Trades CouncilTrades CouncilWashington State Catholic ConferenceWashington State Catholic ConferenceWashington State Coalition AgainstWashington State Coalition Against

Domestic ViolenceDomestic ViolenceWashington State Democratic PartyWashington State Democratic PartyWashington State Labor CouncilWashington State Labor CouncilWashington State Trial Lawyers AssociationWashington State Trial Lawyers AssociationWashington State Unitarian UniversalistWashington State Unitarian Universalist

Voices for JusticeVoices for JusticeWashington State Veterans Leg. CoalitionWashington State Veterans Leg. CoalitionWashPIRGWashPIRGWelfare Rights Organizing CoalitionWelfare Rights Organizing CoalitionYWCA – BellinghamYWCA – BellinghamYWCA of Seattle- King- Snohomish countyYWCA of Seattle- King- Snohomish county

► PAYDAY LENDING New bills have just been passed to help stop the cycle of

high-cost, long-term debt by giving you more options and time to repay your payday loans.

► MORTGAGE LENDING: Homeownership is a family’s most valuable asset and Homeownership is a family’s most valuable asset and

largest source of household wealth. largest source of household wealth. However, in recent years, abuses in the subprime lending However, in recent years, abuses in the subprime lending

market have offered a false promise of homeownership. market have offered a false promise of homeownership. Lax underwriting practices, dangerous loan products, and Lax underwriting practices, dangerous loan products, and

disregard for affordability have set up vulnerable disregard for affordability have set up vulnerable homeowners to fail. homeowners to fail.

As a result, many families with the most to gain from As a result, many families with the most to gain from homeownership will lose their homes.homeownership will lose their homes.

► Refund Anticipation Loans (RALs)

► Auto Fraud/Car Loans

The New Payday Lending LawThe New Payday Lending LawNew law, effective Jan 1, 2010 protects you

by:

• Ensuring you have enough time to pay back loans: At any time, you can request a longer repayment plan:

90 days for loans under $400; 180 days for loans over $400

The minimum term of a loan is your next paycheck unless that is less than 7 days. If it is less than 7 days, the minimum term is your next following pay date.

• Making sure you do not exceed the amount that you can reasonably pay back: Loans can only be 30% of your income or $700,

whichever is less.

• Reducing the need for additional loans to pay back the original loan: Lenders cannot legally loan individuals more than 8

loans in a given year. If you are unable to repay a loan, you can enter into a repayment plan instead of taking out a new loan.

Effective July 26, 2009, Effective July 26, 2009, new rulesnew rules stop lenders stop lenders from harassing customersfrom harassing customers

► Lenders must limit the number of times they contact Lenders must limit the number of times they contact you to collect payment to no more than three times in a you to collect payment to no more than three times in a single weeksingle week

► They may not threaten, intimidate or embarrass you.They may not threaten, intimidate or embarrass you.

Who is eligible?Who is eligible?► Everyone who takes out a payday loan is eligible for the Everyone who takes out a payday loan is eligible for the

terms listed above. terms listed above. ► If a lender is not following these terms, or if you feel If a lender is not following these terms, or if you feel

that you are being harassed by your lender, contact the that you are being harassed by your lender, contact the Alliance to Prevent Predatory Lending Alliance to Prevent Predatory Lending

► appl@noloansharks.org or 206-300-0222.appl@noloansharks.org or 206-300-0222.

SPEAK UP! SPEAK UP! Thank your legislators for taking steps toward making Thank your legislators for taking steps toward making payday lenders act responsibly. Tell them your story payday lenders act responsibly. Tell them your story about how these new laws are helping you and your about how these new laws are helping you and your community. community.

Mortgage/ Foreclosure Mortgage/ Foreclosure LegislationLegislation

►Option ARMs (Adjustable Rate Mortgages) Option ARMs (Adjustable Rate Mortgages) will be resetting in April 2010 causing a will be resetting in April 2010 causing a whole new wave of foreclosureswhole new wave of foreclosures

►GOAL: Help people stay in their homesGOAL: Help people stay in their homes

►Legislation on the horizon: Legislation on the horizon: Mandatory Mediation with a standardized Mandatory Mediation with a standardized

test test Moratorium on foreclosures if unemployed Moratorium on foreclosures if unemployed

Ways to get involved!Ways to get involved!

► Join the APPL coalitionJoin the APPL coalition

► Identify folks to share their storyIdentify folks to share their story

►Get the word outGet the word out -e-mails, newsletters, websites -e-mails, newsletters, websites

► Activate your networks to send postcards, e-Activate your networks to send postcards, e-mails and make phonecalls mails and make phonecalls

► Partner with us to reach out to the mediaPartner with us to reach out to the media

► Invite us to do presentationsInvite us to do presentations

Contact informationContact information

1-866-789-77261-866-789-7726

www.povertyaction.orwww.povertyaction.orgg

Danielle@povertyaction.orgDanielle@povertyaction.org