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Prophetic tradition condemns usury, fraud, exploitation and injustices, especially if it is directed toward the poorest members of society.
The payday lending industry has financially exploited economically vulnerable populations. Low-income families, the elderly, minorities, and military personnel have all been targets of these abusive lenders.
In Ohio, payday lenders have exploited over 300,000 low to moderate-income individuals by charging them exorbitant interest rates. In 1995, the Ohio General Assembly exempted payday lenders from Ohio’s usury laws.
The industry takes advantage of borrowers’ desperate need for cash, making loans at 391% interest. This is not a just and fair way to do business. These predatory practices are very similar to the practices of moneychangers found in the New Testament.
Payday lending has also strained our social service providers, our state’s hunger programs and emergency services, many of which are offered by the faith community. Our various faith traditions offer strong admonishment against those who would oppress and victimize the poor and vulnerable. The prophetic tradition condemns fraud, exploitation and usury.
Payday lending is not only a financially irresponsible practice; it is a morally irresponsible one as well. The practices of payday lenders constitute a modern day form of usury and people of faith have a moral responsibility to take action!
Read the the letter from the Diocese of Cleveland here. (pdf)
Link
Their business plans are not based on creating an ever spiraling debt trap like payday lenders do.
Do those financial institutions need oversight, regulation and possibly reform too?
Sure, but you'll never get that if the predatory lenders overturn H.B.545 in Ohio . . . no one will touch other financial regulation in Ohio if the voters allow their votes to be bought by the outside Ohio Payday consortium spreading lies with their multi-million dollar ad campaigns.