Tanzi,
Welcome House, Jonnycake Center, host Capital Good Fund in Peace Dale
The event, held at the Welcome House of South County
June 6 and hosted by Representative Tanzi and the Jonnycake Center of Peace
Dale, was free and open to the public, and gave attendees insight into the
financial coaching and lending products the Capital Good Fund can provide to
Rhode Islanders.
Representative Tanzi (D-Dist. 34, South Kingstown, Narragansett)
explained:
“It’s well documented that the payday lending industry baits the consumer with a 10-percent rate over two weeks, or a pay period, but the reality is they cannot pay back the loan in two weeks and more often than not, the 10 percent becomes a 260 percent annual percentage rate when it takes a year to payback. These ‘rollover’ loans become the debt trap that ensnares people already on the edge of poverty. While I’m glad there’s some movement toward regulatory change on the federal level, we have opportunities to make things better now in Rhode Island, and I’d like consumers to know that they have options. I’m very grateful to the Capital Good Fund for the alternative services and products it offers to help people manage financial emergencies and come out stronger, and for its staff’s willingness to come to South County and connect our residents to their valuable resources.”
The Capital Good Fund is a nonprofit, certified Community
Development Financial Institution that takes a holistic approach to fighting
poverty. In helping individuals with budgeting, credit building, debt
management techniques, and one-on-one financial coaching, it helps clients
achieve the credit necessary to cover emergencies and other costs such as car
purchases or repairs, security deposits, computers or home weatherization and
empowers them to actually get ahead of the next crisis.
At the event, Rachel Wall, Capital Good Fund’s director
of coaching, told attendees about resources available to them to help them
budget, stick to their budget and achieve financial goals, as well as about
small-dollar loan products available through the Capital Good Fund at much more
reasonable rates and terms than payday loans.
“Through our one-on-one financial coaching program, we
educate Rhode Islanders on how to increase their financial stability and avoid
predatory financial services,” said Wall. “We will continue to collaborate with
our southern Rhode Island partners to ensure that our loans and financial coaching
program are accessible throughout the state.”
Representative Tanzi said the fund’s products to assist
with car repairs and purchases are probably particularly useful for the people
of South County, where, unfortunately, there is very little public transit
available to help those without cars get to work, school or to run errands for
their family.
The events sponsors said they were grateful to the
Capital Good Fund for coming to town for the event and for the help it can
provide to local residents.
“We are excited to have the Capital Good Fund in town to
educate local residents about financial products and coaching opportunities
that might help them build a bridge to economic security,” said Kate Brewster,
executive director of the Jonnycake Center of Peace Dale.
Said Joseph Dziobek, Welcome House’s executive director,
“The Capital Good Fund can play an important role in ending homelessness by
giving individuals an option to the predatory loan industry which some of our
shelter guests have fallen victim to. Getting out of debt is of major
concern to shelter guests and this program with its coaching component and
manageable interest rates provides a viable first step.”