Churches utilize governmental force, small-dollar loans to fight predatory payday lending

Churches utilize governmental force, small-dollar loans to fight predatory payday lending

Anyra Cano Valencia ended up being having supper with her spouse, Carlos, and their loved ones whenever an urgent knock arrived at their home.

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The Valencias, pastors at Iglesia Bautista Victoria en Cristo in Fort Worth, Texas, started the entranceway to a hopeless, overwhelmed congregant.

The girl along with her family members had lent $300 from the “money shop” devoted to short-term, high-interest loans. Struggling to repay quickly, that they had rolled throughout the stability although the loan provider included charges and interest. The girl additionally took down that loan in the name into the household automobile and lent from other lenders that are short-term. The debt had ballooned to more than $10,000 by the time she came to the Valencias for help. The vehicle had been planned become repossessed, in addition to girl and her family members had been vulnerable to losing their house.

The Valencias and their church could actually assist the family save the automobile and recuperate, however the event alerted the pastoral duo to a growing issue: lower-income Americans caught in a never-ending loan period. Continue reading