Mobilization for Justice Drivers Protection Loans

Eligibility

To qualify for a Drivers Protection Loan, applicants must meet the following requirements:

• Be a client of and referred by the MFJ Drivers Protection Program.
• Reside in New York City’s five boroughs, Westchester, or Long Island.
• Have annual household income sufficient to support loan repayment and no higher than the HFLS income limits posted at HFLS.org/How-to-Apply. 
• Have an active checking account.

Married/Partnered Applicants: If an applicant is married or partnered, they must include their spouse or partner’s information in the application form, as each member of a married or partnered couple is equally responsible for the loan.

After an application is submitted, the spouse or partner of the applicant will receive a notification informing them of the loan application and asking them to confirm receipt of the email. This confirmation is required in order for HFLS to process the loan. If the loan is approved, the applicant and their spouse or partner must both sign the promissory note upon loan closing. 

Loan Amounts & Repayment Terms

Loans of $500 will be repaid in monthly installments of $100 over five months; loans of $1,500 will be repaid in monthly installments of $250 over six months. 

If the standard payment plan is or becomes unaffordable for borrowers who are low-income or are facing financial challenges, they may request an alternate loan term of 10 months at $50 per month for $500 loans or $150 per month for $1,500 loans. Applicants who wish to pay off their loan in a shorter amount of time may request higher monthly loan payments, one-time or ongoing, at any time during their loan term.

HFLS will withdraw monthly repayments directly from the borrower’s designated checking account via electronic debit (ACH) on the 5th or the 20th of each month. The borrower will select their preferred repayment date during the loan process. Repayments will begin approximately one month after the loan is disbursed.

Application Process

Clients referred by MFJ should complete the online application available at the link in the “Apply Now” section below.

Upon submission of an application, MFJ will confirm with HFLS that the applicant is an MFJ client, as well as the amount of the loan, which should match the TLC fee the client must pay.

Upon receiving confirmation from MFJ, HFLS will review the application and contact the applicant to schedule a 15-minute loan interview by phone, during which a Loan Officer will raise any questions, explain the remainder of the loan process and their obligations as a borrower, and answer the applicant’s questions.

HFLS will then approve or deny the loan. If the loan is denied, the applicant will receive an email from HFLS noting the reason for the denial. If the loan is approved, HFLS will proceed with the steps below.

Loan Closing and Disbursement

After a loan is approved, HFLS will send the following loan closing documents to the applicant for electronic signature. The applicant will electronically complete and sign the forms where indicated:

• Promissory Note (the legal document the borrower signs to agree to the loan terms and receive the loan), accompanied by a Disclosures document (laying out the key loan terms). The borrower’s spouse will be listed as a co-borrower and must sign the Promissory Note as well.
• ACH Form (to authorize HFLS to automatically withdraw loan repayments from their checking account in accordance with the repayment schedule in the Promissory Note and Disclosures document).

Within two business days of receiving the completed and signed Promissory Note and ACH Form, HFLS will disburse the approved loan amount directly into the borrower’s checking account via electronic debit (ACH). The funds should appear in the borrower’s account within two business days.