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August 2016 Newsletter

RAISE Texas News

Slide Presentation Available from Webinar on Employer-Based Asset-Building Programs
Thanks to all who joined us for the webinar, Workplace Financial Wellness: How Employers Can Help Their Employees Build Financial Stability, on July 12. And, a big thanks to the Federal Reserve Bank of Dallas for hosting this webinar. Presenters on this webinar discussed ways employers can connect their employees with financial wellness programs and products in Texas. If you were unable to join us, the PowerPoint presentation is now available on our website here.

Texas News

New Documentary on Fighting Payday Lending Available for Screenings

The Ordinance, a documentary film about the true story of communities rising to protect the poor from predatory loans, is now available for screenings! Nonprofits, churches, and community organizations should consider hosting your own screening to start a positive discussion about payday lending and reform. An easy-to-use screening kit is available to provide resources to start this important conversation about payday loan reform in your community. Click here to watch the trailer, to order a screening kit, or to find additional resources on payday loans.

What do YOU think about the CFPB’s new rules for the payday and auto title lending market?

Texans need to let the CFPB know how payday and auto title lending impacts your family, clients, and community. Support strong reforms that close loopholes and ensure that loans are based on the ability to repay. The CFPB is still collecting comments about their new proposed rules for the payday and auto title lending market. We need YOU to comment in support of strong reforms so please submit comments now using the instructions below.

  • For borrowers, clients, community members, and others who want to submit personal stories as the essence of their comments, and have relatively short comments, use one of the following three methods to send in your comment

    1. Online form available at: www.stoppaydaypredators.org/texasfairlending/

    2. Email: FederalRegisterComments@cfpb.gov . Include Docket No. CFPB-2016-0025 or RIN 3170–AA40 in the subject line of the email.

    3. Paper forms can be filled out and collected and mailed by the sponsoring organization. Here are some possible templates in English, in Spanish and from the CFPB. Forms should be mailed to: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street, NW., Washington, DC 20552. Include Docket No. CFPB-2016-0025 or RIN 3170–AA40.
For organizational comments, letters from city councils or other elected officials, or for longer comments, use one of the following three methods to send in your comments:

1. Email: FederalRegisterComments@cfpb.gov . Include Docket No. CFPB-20
16-0025 or RIN 3170–AA40 in the subject line of the e-mail.

2. Upload comments in pdf form onto regulations.gov. Put the docket number in the search bar and include docket number in your document heading.

3. Mail to: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street, NW., Washington, DC 20552. Include Docket No. CFPB-2016-0025 or RIN 3170–AA40.

National News and Resources

New National Financial Capability Study Report Released

FINRA Investor Education Foundation's (FINRA) recently released new report, “Financial Capability in the United States 2016”, underscores the need to ensure that all Americans have access to education, resources and the tools they need to manage their money confidently. The report shows that in Texas, even though the percentage of Texans with a rainy day fund has been increasing over the past six years, there are still over half of Texans without money set aside to cover unexpected expenses for three months in case of job loss, unexpected medical expenses or other emergency. Click here to see all of the data for Texas and the United States.

Brookings Reports on the Diversity of the Millennial Generation

William H. Frey’s article, “Diversity defines the millennial generation”, calls racial diversity the “most defining and impactful characteristic of the millennial generation”. According to the 2015 Census data, millennials are 23 percent of the total population, 30 percent of the voting age population, and 38 percent of the primary working age population. But Frey’s analysis of the data points relates more to the racial minorities, where millennials are 27 percent of the total minority population, 38 percent of voting age minorities, and 43 percent of primary working age minorities. Click here to read the entire report on millennial diversity.

States Take Action to Help People Save for Retirement

A recent federal report shows that about 55 percent of households with workers between ages 55 and 64 have less than $25,000 in savings for retirement. A new study by the Pew Charitable Trusts found that alarmingly 42 percent of full-time, private sector workers ages 18-64 did not have access to an employer-sponsored retirement savings plan. This is a major barrier for Americans trying to save for retirement. To help the 30 million workers without access, at least 31 states have considered a state-sponsored retirement savings plan. In fact, since 2012 24 states introduced bills to help increase retirement savings of private sector workers. For more information on this new study, click here.

Who Uses Payday and Installment Loans and Why?

MDRC released a paper that explores the use of online payday lending services through the analysis of administrative data by subprime lenders, survey data and in-depth interviews of borrowers. Online Payday and Installment Loans: Who Uses Them and Why? finds that nearly 64 percent of respondents used payday loans to cover regular expenses and most had stable incomes. Borrowers tend to share common problems like high debt, little or no savings, or poor credit histories. And, one of the biggest challenges to states regulating these loans is the Native American tribal lenders that are not subject to the same rules as state-licensed lenders. Click here to read the entire report.

Article on Payroll Advance Products
The New York Times published an article last month about current payroll advance products. “New Payday Options for Making Ends Meet” explores payroll cards, A.T.M.s and other methods of helping people who live from paycheck to paycheck take home their pay as soon as they earn it. Read the article here.