WEMU has partnered with the United Way of Washtenaw County to discover the folks, organizations, and establishments creating alternative and fairness in our space. And, as half of this ongoing sequence, you’ll additionally hear from the folks benefiting and rising from the investments being made in the areas of our group the place there are gaps in obtainable providers. It is a group voice. It is ‘Washtenaw United.’
ABOUT JOSH HOVEY:
Josh Hovey is associate at Martin Waymire, a statewide strategic communications agency specializing in working with organizations which can be in search of to make Michigan a greater place.
He joined Martin Waymire after practically 12 years at Lansing-based strategic communications agency Truscott Rossman, the place he served as vice chairman. In that capability, he managed communications technique and shopper service for organizations starting from small native non-profits to Fortune 500 companies.
Josh is a nationally accredited communications skilled who’s adept in strategic planning, media relations, digital media and disaster communications. He is maybe greatest identified for his work serving as communications director for the profitable 2018 marketing campaign to legalize leisure marijuana in Michigan after which following up that marketing campaign by launching the Michigan Cannabis Industry Association in 2019. From 2008 to 2018, he additionally managed communications for the Coalition Protecting Auto No-Fault’s effort to reform the state’s auto insurance coverage system in a approach that may defend catastrophically injured auto accident survivors.
From 2006 to 2008, he was an assistant to Lansing Mayor Virg Bernero the place he managed constituent relations and developed environmental and financial coverage initiatives for the administration.
Josh has earned his Accreditation in Public Relations, certifying his professionalism and ethics, and his mentorship for youthful professionals in the subject. In 2018, Josh was acknowledged with the PACE Maker of the Year award, the highest particular person honor from the Public Relations Society of America Central Michigan Chapter.
In addition to his position at Martin Waymire, Josh additionally serves on a number of native boards together with the metropolis of Lansing Planning Commission, the Lansing Board of Zoning Appeal and the Lansing Regional Chamber Political Action Committee. When he isn’t volunteering with any of these organizations or at his desk at Martin Waymire, you may often discover him biking the again roads of Michigan, taking part in soccer or going to concert events together with his spouse.
A 2005 graduate of Michigan State University, Josh holds a bachelor’s diploma in sociology, which he finds extraordinarily useful in understanding how you can assist shoppers join with their goal audiences.
TRANSCRIPTION:
David Fair: This is 89 one WEMU, and welcome to a different version of Washtenaw United. I’m David Fair, and I’m positive many of you have got observed rates of interest have been going up. The common rate of interest for a 30-year fastened mortgage in Michigan is as much as six level seventy 5 %. Now, all too many in our group stay paycheck to paycheck and, in truth, should take out an advance payday mortgage simply to fulfill obligations. Interest charges on these sorts of loans averaged 370 % APR. If you suppose that is ridiculous, you are not alone. The group Michiganders for Fair Lending needs to place a measure on the November poll that may cap these mortgage charges to a relatively low 36 %. They’re calling it the “Stop the Debt Trap” marketing campaign. Our visitor this morning is Josh Hovey, and he’s a associate in the Lansing communications agency, Martin Waymire, and is working with Michiganders for Fair Lenders on this effort. And thanks a lot for the time at present.
Josh Hovey: So completely happy to be on the present. Thank you.
David Fair: Do we have now any concrete numbers as to what number of Michiganders should make the most of these sorts of mortgage providers?
Josh Hovey: The state does not actually monitor the precise quantity, however the Center for Responsible Lending has performed rather a lot of analysis on this, and so they know that roughly $100 million is taken out of the state financial system each single 12 months by these exorbitantly excessive rate of interest loans. We additionally know that the common payday mortgage borrower instantly takes out one other mortgage after repaying off their first one and get caught in a median of 10 loans a 12 months. So, this can be a debt entice, and it is one thing that, by and enormous, most individuals would agree is totally unfair. It’s preying on those that can least afford it. It’s one thing that we have to cease.
David Fair: So, it is clearly a possible hazard for anybody on the decrease revenue scale. Does it influence communities of colour extra severely?
Josh Hovey: Unfortunately, it does. When you take a look at the place payday mortgage workplaces are positioned, they disproportionately find in low revenue communities, communities of colour, and, actually, it is a problem of fairness. It’s a problem of equity. And that is why we will the poll this November and asking folks to place an finish to it.
David Fair: As we think about these loans, for many who are in the lending enterprise, there is not any approach for them to lose. You cannot actually default on these loans, are you able to? [
Josh Hovey: No, you actually cannot. Because what occurs is, think about your self, , residing paycheck to paycheck, your furnace breaks down, or your automobile breaks down, and, , you suppose you have got nowhere else to show. You know, you are driving down the avenue. You see these companies. So, the first place folks suppose of is a payday mortgage. When there are different choices on the market, they’re simply not as well-known. And what occurs when different states have handed legal guidelines to cap the charges that these lenders cost them, extra companies, , banks, group credit score unions, there’s even nonprofits doing small greenback loans, extra alternatives sprang up that do not drain a lot cash from folks’s pocketbooks and permit them to pay their payments in a daily approach. Because what these payday lenders do is that they acquire entry to your checking account. And, as quickly as that invoice is due, and so they know that your paycheck is cashed and comes into your account, they instantly take the cash that they are owed with hours left with anything.
David Fair: And they should borrow once more.
Josh Hovey: Yeah, precisely. So, they do not get to choose and select what payments they pay, what payments they pay late, issues that generally folks do after they’re in a position to juggle their funds. But that does not occur on payday loans.
David Fair: So, these mortgage providers will let you know that the excessive charges are as a result of service banks and employers will not supply such providers. And by providing these loans, even at these rates of interest, they’re serving to folks preserve housed and fed. So, what do you say to them?
Josh Hovey: I say to them there is not any cause to be preying on individuals who can least afford it. But I believe anybody would agree {that a} 300 and seventy % rate of interest is outrageous, predatory. And that is why we have constructed a rising coalition that features base organizations, and it contains group teams. And all of them agree that there are higher choices on the market, and nobody must be preying on the most weak in our communities.
David Fair: This is 89 one WEMU. We’re speaking predatory lending and the effort to place a cap on payday loans by a poll initiative with Josh Hovey, who’s working with Michiganders for Fair Lending. There are a quantity of systemic points that contribute to preserving folks in these so-called debt entice. How prominently does predatory lending determine in the total scheme of issues?
Josh Hovey: Well, it is only one of many points, but when we will take this one off the desk, then we’re making progress and ensuring that folks in our group are in a position to, , stay life to their fullest potential. So that is why we have to do it. And different states have discovered rather a lot of success. There’s 18 different states which have put caps on payday loans at a 36 % APR. That features a lot of purple states like Michigan. Nebraska, Colorado, South Dakota, Montana have all not too long ago handed voter initiated legal guidelines to cap payday loans, and people legal guidelines handed in these states with greater than 70 % help. So, it exhibits you that this can be a very fashionable situation. It exhibits you that while you take a look at these states, new lending alternatives have popped up, and this can be a reform that is documented as working.
David Fair: Capping payday loans at 36 % would definitely be a dramatic enchancment, however, to me, nonetheless sounds very excessive. So, how is that determine decided?
Josh Hovey: Well, there’s a fee that has been type of used as a nationwide mannequin. The U.S. army discovered that there have been rather a lot of payday lenders popping up round army bases preying on service members. And so, the federal authorities handed a legislation that capped the fee at 36 % APR, which has similarities to a excessive rate of interest bank card. But that legislation, federally, solely applies to active-duty service members. It does not apply to veterans. It does not apply to anyone else. And so, when that Military Lending Act was handed, it did rather a lot of good and helped be sure that our lively army personnel weren’t being preyed upon and that, , they had been in a position to care for his or her households, which is the proper factor to do. But now, we have to take that very same nationwide mannequin and apply it to everybody else.
David Fair: In order to make the poll, you want over 340,000 legitimate signatures in hand by the June 1st deadline. Where does that drive stand at this level?
Josh Hovey: Luckily, the climate is warming up, so we’re in a position to get extra folks on the market and on the streets, so we encourage folks to search for petition signers. We are doing a paid signature query marketing campaign the place we’re counting on individuals who they’re getting revenue to exit and do that work for us. But it is robust on the market. It’s a troublesome job market, and so, we’re at all times in search of extra folks to enroll. If you are fascinated by gathering signatures, we encourage you to go to our web site. That’s Fair Lending MI dot org. You can shoot us a message, and we’ll join you with a signature assortment staff, and you’ll be ok with doing a little good work in your group.
David Fair: I do know you are not relying on it, however ought to the petition drive fail, what comes subsequent?
Josh Hovey: Well, we will carry on engaged on the Legislature. The complete cause we’re doing this petition drive is as a result of the Legislature has refused to deal with this situation for a quantity of years. So, if for some cause, we’re not in a position to accumulate the signatures, our subsequent greatest wager is to proceed engaged on the Legislature. And, , we have now an election developing this 12 months. We’ll have some new members in the state Senate. And hopefully, if all issues do not go properly this 12 months, then we’ll preserve at it in the Legislature subsequent 12 months.
David Fair: Josh, I actually recognize your time at present. Thank you for sharing the data.
Josh Hovey: Thank you, David. I actually recognize it.
David Fair: That is Josh Hovey, associate with the Lansing primarily based communications agency Martin Waymire, working with Michiganders for Fair Lending on a marketing campaign to place an initiative on the November poll that may cap payday loans to 36 %. For extra data and all the related hyperlinks you may want, go to our web site at WEMU dot org. I’m David Fair, and that is your group NPR Station, 89 one WEMU FM and HD One Ypsilanti.
RESOURCES:
Michiganders for Fair Lending
Average payday mortgage rates of interest round the nation
Report from the Center for Responsible Lending on the quantity of cash payday lenders drain from the state’s financial system
Michiganders for Fair Lending petition
Josh Hovey Bio
UWWC STATEMENT:
Across Washtenaw County, 31 % of households battle to afford the fundamental requirements of housing, youngster care, meals, well being care and transportation. ALICE is an acronym for Asset Limited, Income Constrained, Employed — households that earn greater than the Federal Poverty Level, however lower than the fundamental price of residing for the county (the ALICE Threshold). While circumstances improved for some households between 2010 and 2019, many continued to battle, particularly as wages didn’t preserve tempo with the price of family necessities (housing, youngster care, meals, transportation, well being care, and a fundamental smartphone plan). With this data, we all know that payday loans may cause hurt to people and households thereby rising established debt. This is one the the reason why Financial stability is a spotlight for United Way of Washtenaw County.
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