HB 1913 would create a new predatory loan, similar to a payday or signature loan, with an annual percentage rate of 204% and AARP Oklahoma is opposed to the proposed predatory loan.
AARP Oklahoma believes in protecting the financial security and independence of all as we age, but these kinds of loans create nothing but a debt trap. Payday lenders use high-cost loans to target seniors on fixed incomes and working Oklahomans. Multiple people in a single household can take this loan, with no requirement to check income for ability to repay.
Help stop the debt trap – call your Senator at 1-844-248-8227 and tell them to vote NO on HB 1913 or email your Senator by clicking HERE.
For example, a $1500 loan will rack up over $2,000 in interest alone throughout the course of one year. Typically, customers take out one loan, and when they have trouble paying it back, the lender calls over and over to offer a new loan to help pay off the first one. The new loan has new fees and charges, driving the borrower to get another loan, creating the debt trap. The average borrower of these loans takes out 7-9 of these loans a year. These loans do not provide financial independence or help for people, it’s just another way for lenders to push seniors on fixed incomes and Oklahoma’s working poor deeper into debt.
AARP Oklahoma works to ensure financial security and independence as we age. We fight to protect not just our members, but our fellow Oklahomans, from things that could compromise that independence.
Help stop the debt trap- call your Senator at 1-844-248-8227 and tell them to vote NO on HB 1913 or email your Senator by clicking HERE.