West End and Gov. Markell lead Delaware in the fight against payday lending
El Tiempo Hispano
On Thursday, July 16 in a press conference at West End, in Wilmington, Governor markell announced the statewide expansion of the highly successful low-interest loan program – now called Loans Plus. This program helps Delawareans break free from the cycle of predatory lending known as payday lending.
With the support of our sponsors, United Way of Delaware and Wilmington Trust, West End created the Workers Loan Program in 2007 as a direct result of the need in the community. Because of its enormous success, the Worker’s Loan Program joined with the Catholic Charities and the YWCA to offer services statewide and the Workers Loan program was renamed Loans Plus.
Loans Plus will help thousands of low- to moderate-income working Delawareans secure low-interest, same-day cash loans while learning to make positive financial choices. Loans Plus offers the following services:
- Small, same-day cash loans averaging from $300 to $500
- Minimal interest rates (never to exceed 15 percent)
- Realistic repayment plans
- Financial literacy education
- The opportunity to establish or re-establish positive credit
In the past 18 months, West End has helped nearly 400 people with $160,000 in loans. To date, 93 percent of customers have successfully re-paid their loans, saving them hundreds or thousands of dollars in interest.
Loans Plus is now accepting applications at the following six service centers statewide:
- Catholic Charities centers in Wilmington, Dover and Georgetown
- West End Neighborhood House in Wilmington
- YWCA locations in Newark and Georgetown
After the press conference, Governor Jack Markell signed Senate Bill 108, which will impose tougher standards and fees on the payday lending industry.
SB 108 provides protection for consumers of a short-term loan product known as a title loan, under which a borrower provides a motor vehicle as collateral for the loan. Additionally, Lenders licensed by the State Bank Commissioner will pay an annual high-cost loan license fee surcharge of $1,500 for each licensed office for making title loans or short-term consumer loans, commonly known as payday loans. Such fees shall be used to fund the creation of the Financial Literacy Education Fund under the administration of the State Banking Commissioner and Secretary of Education to be used to fund financial literacy education programs for consumers and in schools.
What do I need to apply for Loans Plus?
Applicants must be working and have the following pieces of information:
- Your most recent checking account statement (no overdrafts)
- Two current pay stubs
- Delaware Driver’s license or DMV ID
- A current utility bill or lease in your name
- Checks from your checking account
To request a Loans Plus appointment, Click Here or call 302-658-4171 or toll free at 888-936-4727.
For more information or to apply for a loan, contact Barbara Reed at West End Neighborhood House at Breed@westendnh.org; (302) 658-4171; or visit www.westendnh.org.