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Bill Analysis of Indiana SB 613: Consumer Credit

March 5, 2019
Payday and Other Small Dollar Loans
Policy & Legislation

SB 613 increases the rates for existing consumer loans in Indiana, adds additional high-cost loan products to the marketplace, and significantly increases the rates that are considered to be criminal loan sharking. For each of these changes, lenders are provided extraordinary leverage over the borrower, are able to structure the loans in a way that incentivizes repeat re-borrowing, and are not required to ensure that the loans are affordable in light of a borrower’s income and expenses. This combination of incredibly high-cost loans without any sufficient protections against the harms of unaffordable loans places consumers at significant risk of debt which is designed to be nearly inescapable.