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Posted: 4:59 PM Aug 24, 2007
Payday Loan Caps
RICHMOND, Va. (AP) Some in the faith community are calling on legislators to support a 36 percent annual interest rate cap on payday lenders.
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Some in the faith community are calling on legislators to support a 36 percent annual interest rate cap on payday lenders.
The campaign seeks to involve churches of every denomination. They hope to pressure 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.
Christian clergy today accused payday lenders of preying on the weak and vulnerable, a "violation of the gospel of Jesus Christ."
The Virginia Interfaith Center for Public Policy has established a Web site and will circulate petitions in churches statewide.
With all 140 legislative seats on the ballot this November, the group will target influential lawmakers who in the past have supported the industry.
Payday lenders have said an interest rate cap would put them out of business.
A spokesman for Advance America, Cash Advance Centers was troubled by insinuations that payday loan customers or workers were sinners.
Latest Comments
I support that they should limit the payday loans to minimal interest. It could become a problem with individuals.
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