No faith in free markets
September 25, 2008 | Ohio, industry, media coverage, states | Comments (4)As promised, here’s the first news story on the news conference held by religious leaders in Ohio opposed to casino gambling and for payday lending reform.
Comments»
I wonder how the IRS feels about these churches and religious figures taking a stance one way or another regarding political issues. Just thinking because the United Church of Christ was investigated when Obama spoke at their convention, and was later vindicated because no where within the senator’s speech did he mention politics and was there as a guest of the UCC to speak of his faith journey and being a member of the UCC.
This on the other hand is a completely different circumstance – - these ministers and priests alike seem to be ‘trying’ to talk their members into voting one way and then hiding behind their pulpits when they are faced with the truths.
All because of Bill “the man that has no” Faith in people deciding their own lives.
Ohio’s faith leaders took an important step today to admonish those who would exploit and oppress the poor for personal gain. The prophetic tradition condemns fraud, exploitation and usury.
The payday lending business model is neither fair nor just. Charging 391% annual interest and requiring a short repayment schedule sends people from one store to the next, each time taking out another loan to pay off the last. These predatory practices are very similar to the practices of moneychangers found in the New Testament.
Payday lending strains our social service providers, our state’s hunger programs and emergency services, many of which are offered by the faith community.
Ralph…As an owner of a few store and having been in the industry for 10 years, I would like to advise you to remove your blinders. You state that payday lending strains many services that are offered by by the faith community. The point that you are missing is that while the industry is large, our customer base pales in comparison to the number of customers that get swallowed by the credit card industry. There are other issues that need to be addressed prior to demeaning and eliminating a product in demand, which would include the values that are being taught regarding immediate gratification.
As an owner, it is amazing the number of customer that walk through our door that have a new car, a cell phone bill in the triple digits, a cable bill in the triple digits and multiple ATM withdrawals from the local casino. The really sad part is that the profile of these customers are well above what the opponents of the industry would like for you to believe. They are not low income or living in subsidized housing. They are college educated engineers, teachers, supervisors, ect. The are from all walks of life, races, creed and religious background. The only difference my customers have from you or the others that need my product is that they do not have family to help them out or the ability to work overtime or they had an unexpected expense that has thrown their budget in a tailspin.
Regarding your comment about “preditory practices”, I take offense to your statement. Show me any business that has a model of setting the customer up to fail? One of our largest “fears” in this business is a customer that is over extended and connot pay back their advance. This is a “no-win” position as both the lender and borrower lose.
Amazingly enough, I as an owner love to have the opportunity to congratulate a customer when they pay off their loan and say “thanks for your help, but I no longer need to borrow”. It may surprise you that this happens on a weekly basis.
I guess that the biggest thing that I am trying to get across here is that while your opinion and values are greatly needed in the world today, they should not be forced onto others. One of the great things about living in our country is the freedom to make decisions. These decisions need to be well thought out and “confirmed” by the masses, not contradictory to the masses. I congratulate you for not needing to use our service, but ask you to continue to educate those that do and not eliminate the last chance option for them to survive.
Very nicely stated Chris F!!!
!! VOTE NO on Issue 5!!