Today, I made a presentation on payday lending at Evangel University’s Compassion Symposium.
First, here’s a video from Pew Charitable Trusts that explains how payday lending works:
Here’s an additional video about who uses payday loans and why:
I referenced the following Scriptures:
- The Old Testament prohibits the people of God from charging interest on loans to fellow Israelites: Exodus 22:25; Leviticus 25:36–37; Deuteronomy 23:19–20; Nehemiah 5:1–19; Psalm 15:1, 5; Ezekiel 18:8, 13, 17; 22:12.
- The New Testament promotes an ethic of koinonia, “fellowship.” That fellowship has an economic component to it, an ethic of sharing. See, for example: Acts 2:42–47; Romans 15:26; 2 Corinthians 8:4, 9:13; Hebrews 13:16.
I referenced the following documents:
- Center for Responsible Lending, “Payday and Car-Title Lenders Drain Nearly $8 Billion in Fees Every Year”
- Consumer Financial Protection Bureau, “Payday Loans and Deposit Advance Products”
- Consumer Financial Protection Bureau, “Payday, Vehicle Title, and Certain High-Cost Installment Loans” final rule
- Missouri Division of Finance, “Payday Lenders” website
- Missouri Divison of Finance, “Report to General Assembly pursuant to section 408.506, RSMo”
- Pew Charitable Trusts, “Consumer Finance Project” website
- Pew Charitable Trusts, “Payday Lending in America: Who Borrows, Where They Borrow, and Why” and “Payday Lending in America, Report 2: How Borrowers Choose and Repay Payday Loans”
- Pew Charitable Trusts, “Payday Lending in America: Who Borrows, Where They Borrow, and Why” quick summary
- Pew Charitable Trusts, “How Borrowers Choose and Repay Payday Loans” quick summary
- Pew Charitable Trusts, “Payday Lending in America: Policy Solutions” quick summary
I am very pleased first that you presented this and second that EU would include this issue in their conference. Since some believers are hesitant to use the phrase biblical justice, let me simply say that I am excited to see systemic needs addressed in a conference on biblical compassion.