Christian Clergy: Payday Lending a "violation of the gospel of Jesus Christ"

Calling it "a moral stand, not a political campaign," Virginia's faith community last week called on legislators to support a 36 percent annual interest-rate cap on payday lenders.

The "Faithful Pledge" campaign seeks to involve churches of every denomination in pressuring lawmakers to repeal the 2002 law that allowed payday lenders to charge more than a 36 percent annual interest rate. Today, interest rates for the short-term loans reach nearly 400 percent.

[...]

In making the announcement Thursday in Richmond, Christian clergy accused payday lenders of preying on the weak and vulnerable, a "violation of the gospel of Jesus Christ."

"We know that Jesus would never condone the charging of 390 percent interest," said the Rev. Charles E. Swadley, pastor of Lakeside United Methodist Church in Richmond.

Heavens to high interest rates, is this issue a complete no-brainer or what.  I mean, seriously, how could anyone support charging poor people 390% interest on loans?  How could anyone argue that a 36% interest rate is too low?  Right, they can't -- at least not with any plausibility.

So why hasn't Virginia's Republican-controlled legislature done anything about this issue?  Well, according to the Daily Press, that same legislature used "sleight of hand" and "punted on the opportunity to correct this industry, which takes advantage of poor Virginians."  Apparently, Republican legislators in Virginia' General Assembly care more about the lenders whining that "they can't survive with a 36-percent ceiling."  Well, as the Daily Press writes, "Too bad. If an industry can't make it without doing business in a way that harms people, then we don't need it in Virginia."

Comments