Predatory Lending & The Lord’s Prayer

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Many households facing financial struggles may look to short term loans in order to cover emergency expenses. In some states, payday lending companies that claim to provide needed support charge interest rates of 300% or more to borrowers. Steep interest rates and hidden fees can often surprise and trap those not able to quickly repay loans. This leads too many families into a “debt trap” that requires them to continue to take out more payday loans just to keep their regular bills paid. Right now, the Consumer Financial Protection Bureau (CFPB) has the power to curb this predatory debt trap.

Today, the CFPB has released newly proposed payday lending rules. The proposed rules are now open for public comment, allowing individuals, community leaders and congregations to weigh in on payday lending policy. Among several provisions, the CFPB’s proposed rules would enforce regulations to protect consumers from usurious loans,ensuring that lenders set fair loans, and take steps to determine if borrowers can make repayments.

Take action now to ensure that the CFPB passes comprehensive payday lending rules!

In his Large Catechism Martin Luther commented on the fourth petition of the Lord’s Prayer (“Give us this day our daily bread”), saying, “How much trouble there now is in the world… on account of daily exploitation and usury in public business, trading, and labor on the part of those who wantonly oppress the poor and deprive them of their daily bread!” As communities of faith, we oppose unjust policies that result in exploitation of the poor, and call for standards that help lift people out of poverty.

How are Lutherans taking action locally?

ELCA synods throughout the country have created social policies condemning predatory lending practices and usury. Congregations are taking action to support those caught in predatory loans, including Holy Trinity Lutheran Church’s Exodus Lending, a not-for-profit organization that is “committed to providing trapped payday borrowers a just pathway to financial stability” in Minneapolis.

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