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On October 24, 2025, Indiana lawmakers introduced new legislation aimed at protecting Hoosiers from predatory lending practices in the state. The bill, known as the Debtors' Protection Act, seeks to provide greater transparency and accountability in the lending industry, particularly for low-income and vulnerable individuals who may be targeted by unscrupulous lenders.Under the proposed legislation, lenders would be required to disclose all fees and interest rates upfront, making it easier for borrowers to understand the true cost of borrowing. Additionally, the bill includes provisions to limit the amount of interest that can be charged on certain types of loans, such as payday loans and car title loans, which have been known to carry exorbitant interest rates that can trap borrowers in a cycle of debt.In a statement, Senator Jane Thompson, who co-sponsored the bill, emphasized the importance of protecting Indiana residents from predatory lending practices. "Far too often, vulnerable individuals in our state are taken advantage of by unscrupulous lenders who prey on their financial insecurity," she said. "The Debtors' Protection Act aims to level the playing field and ensure that all Hoosiers have access to fair and transparent lending practices."The bill has garnered support from consumer advocacy groups and legal aid organizations, who have long been vocal about the need for stronger protections for borrowers in Indiana. According to a recent report from the Indiana Department of Financial Institutions, there has been a sharp increase in complaints related to predatory lending practices in the state, particularly among low-income and minority communities.If passed, the Debtors' Protection Act would make Indiana one of the few states in the country to have comprehensive legislation aimed at curbing predatory lending practices. Lawmakers are optimistic that the bill will receive bipartisan support and be signed into law in the coming legislative session.In the meantime, Indiana residents are encouraged to familiarize themselves with their rights as borrowers and to report any instances of predatory lending to the Indiana Department of Financial Institutions. With the introduction of the Debtors' Protection Act, lawmakers hope to create a more fair and equitable lending environment for all Hoosiers.