Message Received From Virginia Interfaith Center re: Payday Loans

By: aprilac
Published On: 9/14/2007 8:22:00 PM

 

Our "Faithful Pledge" Campaign to limit the interest rate of payday loans to 36% APR is in full swing!  A lot has been going on and we wanted to share some of the highlights with you.  But first, if you have not already signed the Faithful Pledge, please do so at www.FaithfulPledge.org.

Now, some important news:

Washington D.C -  This past Wednesday, September 12, the VA Interfaith Center was present for a critical press conference in Washington D.C.  The D.C. City Council is expected to pass a bill on September 18 that will cap the interest of payday loans in the District to 24% APR.  The press conference was held on the front steps of the City Council's office. Speakers included included Councilwoman Mary Cheh; Michael Donovan, former District Director of Operations for Check 'n' Go; William Harrod and Cameron Blakely, both former store managers for Check 'n' Go; Jay Speer of the Virginia Poverty Law center; and the Rev. Grayland Hagler from the United Church of Christ. Their comments were poignant, and highlighted the economic and social injustices promulgated by the pay day industry.  Many of the speakers pointed out the deliberate tactics used by the lenders to keep consumers in a cycle of debt of which they are never able to pull themselves out.

"These products are aimed at increasing the maximum indebtedness of individual pay day customers."--- Michael Donovan, former District Director of Operations

"I was instructed to start attending services at Unity Baptist Church- neither my bosses nor the lobbyists could do this, because they were not black.  I was instructed by my boss to offer the church $800 to send several children to summer camp in return for the pastor testifying against the Cheh bill at the Council hearing on reducing payday loan interest rates."--- William Harrod, former Check 'n' Go store manager

"This is an industry fueled on fear and intimidation,"--- Jay Speer, Executive Director, Virginia Poverty Law Center.

"We were trained to access customer's bank accounts to see if there was money in them to pay us by using their account numbers and Social Security numbers, dialing into the automated line and essentially usurping their identities.  We would use this information to collect on our debts, making customers think that we knew where they were all the time and that they couldn't escape us."--- William Harrod, former Check 'n' Go store manager.

The full testimonies are available at www.FaithfulPledge.org.  A video recording of the press conference will also be available on the website soon.

Stauntion - Yesterday, September 13, the Staunton City Council passed a resolution that will ask the General Assembly to cap the interest of payday loans in Virginia at 36% APR.  Councilman Bruce Elder was unswayed by appeals from the payday industry.  He presented the resolution to council and explained that he has been studying the issue for two years. Referencing the federal Talent-Nelson Act, which capped rates for military families, Elder commented that payday loans were such a problem that soldiers 
were not able to deploy to Iraq, he said.  John Whitfield, an attorney from Harrisonburg, spoke in favor of the rate cap. He see clients every week who are dealing with payday lenders.  "They've been rendered destitute by using payday lending," he said.  "Using payday loans to solve financial problems is like trying to put out a fire with gasoline," Whitfield said.

See the full report at http://www.newsleade...

The Center encourages you to take a proposal such as this to your own city council or board of supervisors.  Staunton's Councilman Bruce Elder said, "What we have done tonight is we have thrown a pebble in a pond.  The ripples by the time they reach Richmond should be a tidal wave."  Let's help make this tidal wave!

Faithful Pledge activities:

Last Saturday, the New River Valley Chapter of the Interfaith Center hosted a showing of the film Maxed Out in the Lyric Theater in Blacksburg.  Following the film was a panel discussion about payday lending. Each person present received a Faithful Pledge card.

On September 25, the Interfaith Center, First Baptist Chuch of Newport News and First Baptist Church of Denbigh will host Payday Lending, Your Community and You, a community-wide educational event on payday lending.  We are in the process of planning a similar event in Roanoke for the middle of October.

We are filling requests for Faithful Pledge "Usury" cards on a daily basis.  Please consider distributing these cards at your house of worship, or even putting a card inside your congregation's bulletin on your day of worship.  Just call us at 804-643-2474 to make your request. 

In the next week, we will be sending out educatonal packets on payday lending to all of our Congregational members.  If you're not sure if your congregation is a member and would like to request a packet for your congregation, please give us a call.

Also, check out all of the great new resources on faithfulpledge.org!!!
-Audio recording and transcript of Payday Employee pretending to be a Police Officer and threatening a 68 year old woman
-Video clips about payday lending from consumer advocates in Virginia and across the country
-Passionate statements from former payday employees about the discriminatory and usurious practices of payday lenders
-Ways for you and your congregation to take action.
- And don't forget to sign the pledge! 
Upcoming Community Events:

The Virginia Interfaith Center is encouraging people of faith to talk about the immorality of the exorbitant interest rates of payday loans and the industry's business model which relies on borrowers taking out multiple loans. This is a public problem and should be raised and discussed in the public, not behind closed doors between lobbyists and legislators. 

September 18 - Housing Opportunities Made Equal hosts a viewing of Maxed Out at the Byrd Theater in Richmond, followed by panel discussion.

September 18, 7:30-9 pm -  Northern Virginia's Social Action Linking Together (SALT) and the Virginia Organizing Project host "Meet & Greet" for citizens and candidates.  Held at George Brent Council of the Knights of Columbus at All Saints Campus.  9290 Stonewall Road, Manassas, VA. 

Voice's for Virginia's Children is hosting the following candidate forums:
Richmond

September 27, 7 -9 pm

T.C. Williams School of Law

Moot Court Room

28 Westhampton Way

University of Richmond, VA  23173

Roanoke / Salem

Friday, September 28th from 12 to 1:30 pm

Christ Episcopal Church Parish Hall

1101 Franklin Road, S.W.

Roanoke, Virginia 24016

Box Lunches will be served, RSVP by Monday, September 24th to rsvp@vakids.org

Fairfax County

Wednesday, October 3rd from 7 to 9 pm

Ernst Cultural Center

Northern Virginia Community College, Annandale Campus

8333 Little River Turnpike

Annandale, Virginia

Directions:  http://www.nvcc.edu/...

Hampton / Newport News

Friday, October 5th, 12 pm to 1:30 pm

City Center Conference Facilities

Fountain Plaza II, James Room

700 Town Center Drive, Newport News 23606

Box Lunches will be served, RSVP by Monday, October 1st to rsvp@vakids.org

Stay tuned! 

End Usury - Cap payday loans at 36%,

Ann Rasmussen

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