Sixty Iowans Protest in Des Moines, Demand Interest Rate Caps

Direct action street protest also calls on state legislature to make interest rate caps permanent
 
Sixty members of Iowa Citizens for Community Improvement (Iowa CCI) converged on ACE Cash Express on the corner of Carpenter and 19th Street Saturday to demand “good, affordable credit” for all Iowans and an end to predatory loan policies, such as 400 percent interest rates and two week payback periods.
 
“Payday lending… is not good credit,” reads a letter the group delivered to ACE Check Express.  “Crushing interest rates [400%] and unrealistic payback periods make it impossible for most Iowans to escape the payday lending debt cycle after just one loan.”
 
Iowa CCI members demanded that Ace Cash Express set an example for the rest of the industry by capping interest rates during the holiday season at 10 percent, and extending repayment periods from two weeks to two months.
 
CCI also called on the Iowa state legislature to pass interest rate caps and extended repayment periods during the 2010 legislative session.  House File 288 and Senate File 463 both include provisions aimed at cracking down on payday lending.
 
“These payday lenders are taking advantage of the most vulnerable people in our community,” said CCI member Mike McCarthy of Des Moines, “Enough is enough.  This sort of usury is intolerable.  It's time to crack down on predatory lending.”
 
ACE Cash Express, based in Texas, is one of several payday lenders operating in the Des Moines area that is directly financed by Wells Fargo.  Documents filed with the SEC have shown that ACE Cash Express receives a $265 million line of credit from Wells Fargo.  CCI members continue to demand that Wells Fargo stop financing payday lenders.
 
Iowa Citizens for Community Improvement is a group of everyday people who talk, act and get things done on issues that matter most. With thousands of members from all walks of life – urban and rural, black and white, immigrants and lifelong Iowans – CCI has been tackling tough issues and getting things done for more than 30 years.

For more information about Iowa Citizens for Community Improvement, visit iowacci.org