(NNPA)—More than 80 members of the clergy from 22 states, representing multiple denominations, converged on Capitol Hill from Nov. 17-19 in a unified advocacy effort. Following two days of training that included discussions about the negative impact of payday lending their communities, updates and key data points, clergy on the third day urged lawmakers to enact legislation that extends to all consumers the same protections now benefiting military members and their families—a 36 percent interest rate cap.
The efforts take aim at the triple-digit interest rates now charged by payday lenders across the country. Although 14 states and the District of Columbia have enacted double-digit rate caps, the rest of the nation is subjected to lending rates that can reach as high as 600 percent or more.
The Military Lending Act, passed in 2006, received strong bipartisan support to limit interest rates on consumer credit to no more than 36 percent. Costs and fees for add-on products were a part of the rate cap. Underscoring the need for its enactment, the Department of Defense earlier found that predatory lending undermined military readiness.
At that time, Sen. Richard Shelby, R-Ala., said, “These lenders often count on the fact that borrowers will be unable to pay the loan in full when due, forcing borrowers to seek additional loans, which generate more fees.”
About Post Author
