7/31/2019 Working Families Brief

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7/31/2019 Working Families Brief

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Family block grant (TANF), the Child Care Development Fund (CCDF), and the Elementaryand Secondary Education Act (ESEA).

Provide Short-Term or One-Time Emergency Assistance with Employment Expenses.Several states have welfare diversion programs that provide recipients with lump sum

payments to help obtain or keep a job, including help to buy or repair a car needed fortransportation to work.Coloradofound that state diversion recipients have higher salaries, aremore likely to be employed, and are likely to remain off of cash assistance one year afterreceipt of payment.Marylands Welfare Avoidance Grant is designed to address a familysimmediate need to obtain or maintain employment, including purchasing a vehicle, which hasresulted in reducing the need for welfare benefits. These programs can be funded through thefederalTANFblock grant andSNAP E&T.

Protect Working Families from Predatory Financial Practices, through strategies that can be

enacted at no cost to the state.

Limit Check-Cashing Fees. Many low-income and minority neighborhoods are underservedby banks. Residents are more likely to use check-cashing services, where fees are much moreexpensive than conventional banking fees. Twenty statesregulatecheck-cashing fees. Thelowest capswere established by Illinois (1.4 percent plus ninety cents for checks up to $500and 1.85 percent of checks over $500), and New York (1.64 percent).

Cap Refund Anticipation Loans (RALs). RALsare short-term loans secured by thetaxpayers expected tax refund.Excessive annual interest ratesrange from 50 to 500 percentand typically cost $100 in fees.Arkansasprohibits RAL facilitators from charging extra fees inaddition to the fee charged directly by the bank.New Yorkrequires tax preparers and RALfacilitators to register and pay an annual $100 fee to the state and prohibits facilitators from

charging a fee.

Control Payday Lending. Payday loans are short-term cash loans due on the borrowers nextpayday; excessive annual interest rates range from 390 to 780 percent. To addresspredatory payday lending, fifteen statesand the District of Columbiaset limitson interest rateson small loans.Georgiaexpressly prohibits payday lending. These lending protectionmeasures saved families an estimated $1.4 billion in 2006, the most recent year for which dataare available.

Enact Protections Against Predatory Mortgage Lending. Thesepracticesinclude negativeamortization, prepayment penalties, credit insurance financing, home loan refinancing to the

detriment of the consumer, high interest rates not justified by risk factors, and excessiveforeclosures. North Carolinaenacted the first comprehensive law protecting against predatorymortgage lending in 1999, saving an estimated $100 million in the first year. Since then,30stateshave established predatory lending laws with the strongest in Arkansas, California,Georgia, Illinois, Massachusetts, New Jersey, New Mexico, New York, North Carolina, SouthCarolina, and West Virginia.

Visitpolicyforresults.orgfor assistance, more information, state data, research and resources.

Policyforresults.orgis a non-partisan, nonprofit resource for state policymakers.

http://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=http://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=http://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=http://www.acf.hhs.gov/programs/ccb/ccdf/index.htmhttp://www.acf.hhs.gov/programs/ccb/ccdf/index.htmhttp://www.acf.hhs.gov/programs/ccb/ccdf/index.htmhttp://www2.ed.gov/policy/elsec/leg/esea02/index.htmlhttp://www2.ed.gov/policy/elsec/leg/esea02/index.htmlhttp://www2.ed.gov/policy/elsec/leg/esea02/index.htmlhttp://www.nawrs.org/NewMexico/papers/t5e2.pdfhttp://www.nawrs.org/NewMexico/papers/t5e2.pdfhttp://www.nawrs.org/NewMexico/papers/t5e2.pdfhttp://policy.rutgers.edu/faculty/hetling/Hetling_Diversion_SSR.pdfhttp://policy.rutgers.edu/faculty/hetling/Hetling_Diversion_SSR.pdfhttp://policy.rutgers.edu/faculty/hetling/Hetling_Diversion_SSR.pdfhttp://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=http://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=http://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=http://www.clasp.org/admin/site/documents/files/FundingCareerPathways_SNAPET.pdfhttp://www.clasp.org/admin/site/documents/files/FundingCareerPathways_SNAPET.pdfhttp://www.clasp.org/admin/site/documents/files/FundingCareerPathways_SNAPET.pdfhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Check-Cashing.aspxhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Check-Cashing.aspxhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Check-Cashing.aspxhttp://www.consumerfed.org/pdfs/cfa_2006_check_cashing_study111506.pdfhttp://www.consumerfed.org/pdfs/cfa_2006_check_cashing_study111506.pdfhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Refund-Anticipation-Loans.aspxhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Refund-Anticipation-Loans.aspxhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Refund-Anticipation-Loans.aspxhttp://www.nclc.org/index.php?option=com_content&view=article&id=143:refund-anticipation-loans&catid=36:issues&Itemid=153http://www.nclc.org/index.php?option=com_content&view=article&id=143:refund-anticipation-loans&catid=36:issues&Itemid=153http://www.nclc.org/index.php?option=com_content&view=article&id=143:refund-anticipation-loans&catid=36:issues&Itemid=153http://www.nclc.org/images/pdf/high_cost_small_loans/report-ral-2010.pdfhttp://www.nclc.org/images/pdf/high_cost_small_loans/report-ral-2010.pdfhttp://www.nclc.org/images/pdf/high_cost_small_loans/report-ral-2010.pdfhttp://www.tax.state.ny.us/pdf/memos/multitax/m09_11c_9i_10m_3mctmt_4r_15s.pdfhttp://www.tax.state.ny.us/pdf/memos/multitax/m09_11c_9i_10m_3mctmt_4r_15s.pdfhttp://www.tax.state.ny.us/pdf/memos/multitax/m09_11c_9i_10m_3mctmt_4r_15s.pdfhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Curb-Household-Debt/36-percent-cap.aspxhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Curb-Household-Debt/36-percent-cap.aspxhttp://scorecard.cfed.org/financial.php?page=payday_lending_protectionhttp://scorecard.cfed.org/financial.php?page=payday_lending_protectionhttp://scorecard.cfed.org/financial.php?page=payday_lending_protectionhttp://www.responsiblelending.org/payday-lending/policy-legislation/states/pa-GeorgiaPayday-0606.pdfhttp://www.responsiblelending.org/payday-lending/policy-legislation/states/pa-GeorgiaPayday-0606.pdfhttp://www.responsiblelending.org/payday-lending/policy-legislation/states/pa-GeorgiaPayday-0606.pdfhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Home-Foreclosures/Foreclosed-Properties/What-Works/Strategies.aspxhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Home-Foreclosures/Foreclosed-Properties/What-Works/Strategies.aspxhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Home-Foreclosures/Foreclosed-Properties/What-Works/Strategies.aspxhttp://www.responsiblelending.org/north-carolina/nc-mortgage/policy-legislation/archive/1999-nc-predatory-lending-law.htmlhttp://www.responsiblelending.org/north-carolina/nc-mortgage/policy-legislation/archive/1999-nc-predatory-lending-law.htmlhttp://www.nga.org/portal/site/nga/menuitem.9123e83a1f6786440ddcbeeb501010a0/?vgnextoid=9bcc19091b68f110VgnVCM1000005e00100aRCRDhttp://www.nga.org/portal/site/nga/menuitem.9123e83a1f6786440ddcbeeb501010a0/?vgnextoid=9bcc19091b68f110VgnVCM1000005e00100aRCRDhttp://www.nga.org/portal/site/nga/menuitem.9123e83a1f6786440ddcbeeb501010a0/?vgnextoid=9bcc19091b68f110VgnVCM1000005e00100aRCRDhttp://www.nga.org/portal/site/nga/menuitem.9123e83a1f6786440ddcbeeb501010a0/?vgnextoid=9bcc19091b68f110VgnVCM1000005e00100aRCRDhttp://www.policyforresults.org/http://www.policyforresults.org/http://www.policyforresults.org/http://www.policyforresults.org/http://www.policyforresults.org/http://www.policyforresults.org/http://www.policyforresults.org/http://www.nga.org/portal/site/nga/menuitem.9123e83a1f6786440ddcbeeb501010a0/?vgnextoid=9bcc19091b68f110VgnVCM1000005e00100aRCRDhttp://www.nga.org/portal/site/nga/menuitem.9123e83a1f6786440ddcbeeb501010a0/?vgnextoid=9bcc19091b68f110VgnVCM1000005e00100aRCRDhttp://www.responsiblelending.org/north-carolina/nc-mortgage/policy-legislation/archive/1999-nc-predatory-lending-law.htmlhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Home-Foreclosures/Foreclosed-Properties/What-Works/Strategies.aspxhttp://www.responsiblelending.org/payday-lending/policy-legislation/states/pa-GeorgiaPayday-0606.pdfhttp://scorecard.cfed.org/financial.php?page=payday_lending_protectionhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Curb-Household-Debt/36-percent-cap.aspxhttp://www.tax.state.ny.us/pdf/memos/multitax/m09_11c_9i_10m_3mctmt_4r_15s.pdfhttp://www.nclc.org/images/pdf/high_cost_small_loans/report-ral-2010.pdfhttp://www.nclc.org/index.php?option=com_content&view=article&id=143:refund-anticipation-loans&catid=36:issues&Itemid=153http://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Refund-Anticipation-Loans.aspxhttp://www.consumerfed.org/pdfs/cfa_2006_check_cashing_study111506.pdfhttp://www.policyforresults.org/Topics/Policy-Areas/Children-Safe-Supportive-Successful-Families/Reduce-Poverty/Poverty-Level/What-Works/Strategies/Control-Household-Costs/Limit-predatory-financial-practices/Check-Cashing.aspxhttp://www.clasp.org/admin/site/documents/files/FundingCareerPathways_SNAPET.pdfhttp://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=http://policy.rutgers.edu/faculty/hetling/Hetling_Diversion_SSR.pdfhttp://www.nawrs.org/NewMexico/papers/t5e2.pdfhttp://www2.ed.gov/policy/elsec/leg/esea02/index.htmlhttp://www.acf.hhs.gov/programs/ccb/ccdf/index.htmhttp://www.financeproject.org/fedfund_view.cfm?id=344&keyword=&agency=&eligible=&matchRec=99&level2=11,12,13,24,15,16,17,18,25,19,27,10,28&level3=&level4=27&type=