In Oklahoma, payday lenders are clustered around Tinker Airforce base and low income neighborhoods. Here's a quote from the USA Today article:
After another study — this one by the Pentagon — found the average military borrower was repaying $834 for a $339 loan, Congress slapped a 36% annual interest-rate cap on payday loans to military members and their spouses. That level is tolerable if the loans are repaid promptly. Now, a few states are moving to offer the same protection to civilians.Oklahoma is not one of the states that is working to address the the injustice of charging 400% in annual interest. Oklahoma suffers under legislative leadership that is either hardhearted, irresponsible, myopic or any combination of the above. For proof, make a visit to the website for the Alliance for Oklahoma's Future and see the documentation regarding the consequences of recently enacted state income tax cuts.
Robert Parham asks "Where Do Payday Lenders Go to Church?" I don't know where they go to church, but I'm fairly certain that their money goes to support politicians who have the hardest hearts, the least amount of civic responsibility, and who are overweeningly self-interested.
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9 comments:
Bruce, your link for "Where Do Payday Lenders Go to Church?" is wrong. This is the link:
http://www.ethicsdaily.com/article_detail.cfm?AID=10132
Jadon,
Thanks for the heads up.
I've got the link corrected now.
As a reperesentative of payday lending, I would like to attach this statement regarding payday lenders targetting christians.
Payday lenders called a new study that claims to have “conclusive proof that conservative Christian Americans are a prime demographic target of the payday lending industry” preposterous.
This study, “Usury Law and the Christian Right,” comes on the heels of prior allegations that payday lenders locate in communities with high populations of military, women, Hispanics, the elderly, African Americans, recent immigrants, young people, Native Americans, social security recipients, veterans, the poor and households with a median annual income of $48,000. A recent BusinessWeek article said payday lenders are now targeting more affluent neighborhoods.
Analysts estimate that 19 million U.S. households used a payday loan in 2006.
“Our industry has been accused of ‘targeting’ the military, minorities, women, immigrants, the elderly, the poor, the middle-class and now conservative Christians,” said Darrin Andersen, president of the Community Financial Services Association of America. “Who’s left? This is preposterous.”
Cookie,
I can confirm that those are the neighborhoods being targetted by payday lenders in Oklahoma.
Come to Oklahoma and I'll take you on a tour.
Even that bastion of liberal journalism -- the Wall Street Journal reports that Social Security pensioners and the disabled are being targetted.
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I am not well versed in the lending laws of Oklahoma but there are procedures and regulations in place that limit how much customers can be charged for payday loan services. Paying over $800 in interest for a single $339 loan is not possible especially if a lender is a part of the CFSA trade association. Those who oppose the short-term loan industry, more often than not, provide inaccurate calculations and give unrealistic interest scenarios in which a customer would have to obtain a loan every payday for an entire year.
In addition, it is not very safe to assume that payday lenders are unconcerned, uninvolved and unsupportive of the communities in which we serve. The organization for which I work, in 2007 alone, donated and raised nearly $10,000 for a number of charities and municipalities in addition to encouraging corporate volunteerism and community involvement.
I guess I don't understand when people say they are 'targeted.' Do these payday people come to your house and target you? I can tell you that I've never had that happen but I have had several religious folks knock on my door and I pass more churches on my way to work than the payday places... am I being targeted by religion? I'm sure this comment won't get "approved" by the owner of the site but I bet you get my drift.
I am getting so tired of you irresponsible journalists! Payday lenders are not loan sharks, I have never had my legs broken when I wasn't able to pay. They are not predators either, I have not been attacked, killed, or eaten by going into a payday loan store. They are not predatory lenders, a predatory lender is someone who loans money when they know it cannot be paid back. I have to give all kinds of proof that I am able to pay back my loans. Why don't you focus your efforts on something you are an expert on, like gay marriage, and leave payday lenders alone. They are here to help, and you are feeding the public false information!
Dr. Prescott,
When you take Cookie on that tour of Oklahoma will you point out the 774 churches that exist just in the city limits of Oklahoma City? When you do, please count how many payday lenders there are and compare that number. The number and location of a business (or church) reflect a demand not a predatory nature. Wouldn't you agree?
Also, unfortunately, you’ve quoted an inaccurate story by throwing in that link to the Wall Street Journal. The reporters of the Wall Street Journal article seem to be writing about the payday lending industry but then describe practices of businesses that are NOT payday lenders. Since then editors at the newspaper have admitted that the subject of their article was not the payday lending industry. Licensed payday lenders do not work with other banks to have customers benefit checks deposited into their accounts then transferred to the payday lender (state laws prohibit this practice).
With so many inaccuracies and misrepresentatins out there I'm glad to still have a choice on how to handle my own finances without some misinformed group butting in to take that freedom away from me.
Thanks,
Claire
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