Just a year ago, we witnessed the near collapse of the financial system due to reckless lending practices. In an effort to avert a global financial crisis, over $200 billion in tax payer dollars rescued these culpable banks, which now seem to be on the road to financial recovery.
Yet for the average American citizen, our financial houses remain in shambles. The growth in unemployment is now the highest in more than 20 years. Many of our new college graduates are finding that a degree is not enough to assure gainful employment. A steady stream of foreclosures stemming from the flood of predatory loans into our communities has changed many families’ American dream into an American nightmare.
Amidst these daunting financial challenges are others who are exploiting the meager monies families still have. In moderate and low-income neighborhoods across our state, payday lenders lure customers into their doors with the promise of quick cash that soon turns into a mountain of debt. Short-term loans of just a few hundred dollars that come with an interest rate of 400 percent or more ensnare people into a deceitful cycle of debt often more difficult to retire than the original financial stress that led them to seek a loan.
The real irony is that in 2002, Missouri’s legislature passed and our governor signed into law a measure to rein in payday abuses. Dishonoring its legislative intent, this law has become much like a front porch light in summer – attracting hundreds of unwanted pests. Today in 2009, the predatory problem Missouri thought was resolved is still snatching the hard-earned wages of working families. Additionally, Missouri still has payday interest rates grater than 400 percent and one of the largest numbers of payday stores in the country.
The truth is, beyond Wall Street and Washington, another financial breakdown needs to be identified, spelled out, and exposed: legalized loan sharking.
The convenience, accessibility and visibility of payday stores in our communities are poverty pimping at its finest. It is also what the Bible calls usury. As men of faith and values, we publicly call upon our elected state leaders to bring some sensibility into the runaway payday industry.
Such calls are part of Missouri’s own history. In 2006, our own Congressional delegation’s Sam Graves and Jim Talent successfully fought for an interest rate cap of 36 percent for members of our armed forces and their family. If 36 percent is good enough for military families, it ought to be good enough for everyday people too.
In these times when all things financial are facing reform and families are stretching every hard-earned dollar to meet basic needs, Missouri must find both the will and the way to enforce a non-predatory interest rate cap of 36 percent. As men of faith, we are calling upon our elected officials to do what is right – legally, fiscally, and morally.
Pastoral Care Revival
Solomon’s Temple Church, 5569 Page Blvd., is hosting a Pastoral Care Revival with Evangelist Rita Womack (Los Angeles, CA) October 7-9 with nightly services at 7 p.m. Bishop James E. Holloway is senior pastor and founder, and the 1st Lady and co-pastor is Linda D. Holloway. Visit www.solomonstemplechurch.org or email solomons@i1.net.
Fall Festival
St. Thomas The Apostle Romanian Orthodox Church, 6501 Nottingham Ave., will host its 2009 Fall Festival 2009 from Oct. 10-12. All are welcome as Romanian and Albanian immigrants celebrate their diverse ethnic heritage with food, music and dancing. Visit www.st-thomas-the-apostle.org.