Please Take Action Against Payday Lending!
Please contact your Senator and Representative to OPPOSE SB 1089/HB 2432, which would raise the cost of credit for Texans by making licensed loans look more like payday loans. We urgently need your help to stop these bills from (1) being set on the Texas senate calendar or (2) from being voted out of the House Pensions, Investments, and Financial Services Committee.
It takes less than 3 minutes to email your state lawmaker here!
The Texas bishops support prioritizing the poor and vulnerable when addressing social and economic needs through public policy. We seek to assist those who are in the greatest need through various means, and that includes opposing usurious loans such as payday and auto title lending, and certain cash advance loans.
These bills increase the maximum reference base amount for certain consumer loans from $200 to $300. According to the Texas Fair Lending Alliance, this bill would nearly double the cost of impacted loans for Texans by increasing rates and fees for loans between $1,500 and $2,100, from a cap of 30% interest and a $100 fee—around 35% APR for a two-year $2,000 loan to an effective APR of 79% or higher. Texas already has higher interest rates than average for licensed consumer loans and would have one of the highest permissible rates in this bill. In addition to opposing these bills, we urge legislators to oppose any amendment to others bills with the language in these bills.
The Texas bishops' perspective on this bill is informed by our direct service and ministry to the poor and vulnerable. Our Catholic Charities, St. Vincent de Paul Societies, parish-based programs, and other ministries see the effects day in and day out of families struggling to get by. While we recognize that poor communities have often been underserved by traditional financial institutions and need access to credit, these types of loans only exacerbate the problem with exorbitant interest rates and onerous terms. That is why we have supported development of alternative financial products such as St. Vincent de Paul’s Mini Loan Program and payday conversion loans and promote Catholic Charities’ financial assistance programs.
The Texans Bishops join Pope Francis who said, “Usury humiliates and kills. Usury is a grave sin. It kills life, stomps on human dignity, promotes corruption, and sets up obstacles to the common good.” Again, please use the OneClickPolitics tool in the link here to contact your Texas Representative or Senator. Thanks for your advocacy to protect poor and vulnerable Texans!
Throughout session, continue to follow us on Facebook and Twitter for the latest updates!
Please Take Action Against Payday Lending!
Please contact your Senator and Representative to OPPOSE SB 1089/HB 2432, which would raise the cost of credit for Texans by making licensed loans look more like payday loans. We urgently need your help to stop these bills from (1) being set on the Texas senate calendar or (2) from being voted out of the House Pensions, Investments, and Financial Services Committee.
It takes less than 3 minutes to email your state lawmaker here!
The Texas bishops support prioritizing the poor and vulnerable when addressing social and economic needs through public policy. We seek to assist those who are in the greatest need through various means, and that includes opposing usurious loans such as payday and auto title lending, and certain cash advance loans.
These bills increase the maximum reference base amount for certain consumer loans from $200 to $300. According to the Texas Fair Lending Alliance, this bill would nearly double the cost of impacted loans for Texans by increasing rates and fees for loans between $1,500 and $2,100, from a cap of 30% interest and a $100 fee—around 35% APR for a two-year $2,000 loan to an effective APR of 79% or higher. Texas already has higher interest rates than average for licensed consumer loans and would have one of the highest permissible rates in this bill. In addition to opposing these bills, we urge legislators to oppose any amendment to others bills with the language in these bills.
The Texas bishops' perspective on this bill is informed by our direct service and ministry to the poor and vulnerable. Our Catholic Charities, St. Vincent de Paul Societies, parish-based programs, and other ministries see the effects day in and day out of families struggling to get by. While we recognize that poor communities have often been underserved by traditional financial institutions and need access to credit, these types of loans only exacerbate the problem with exorbitant interest rates and onerous terms. That is why we have supported development of alternative financial products such as St. Vincent de Paul’s Mini Loan Program and payday conversion loans and promote Catholic Charities’ financial assistance programs.
The Texans Bishops join Pope Francis who said, “Usury humiliates and kills. Usury is a grave sin. It kills life, stomps on human dignity, promotes corruption, and sets up obstacles to the common good.” Again, please use the OneClickPolitics tool in the link here to contact your Texas Representative or Senator. Thanks for your advocacy to protect poor and vulnerable Texans!
Throughout session, continue to follow us on Facebook and Twitter for the latest updates!