Are religious leaders in opposition to the payday loan industry? They could be joining the fight against the much detested sector in one state.
It was reported last week that several Minnesota officials would introduce legislation next week that would implement reforms on the payday loan industry. For the second time in two years, state representatives will try to cap interest rates, limit the number of payday loans a customer can use and curtail the methods of bad credit loan businesses collecting money.
Many concede that it will be difficult because the payday loan lobby has spent millions of dollars to quash any sort of regulatory reform bills. But the bill’s sponsors may have a new ally that will serve as an important ally: the religious community.
At an annual meeting this past week, Minnesota State Baptist Convention leaders announced they would support and advocate for congregants who have been seriously affected by high-interest payday loans. Moving forward, the church will partner with ISAIAH, a religious group that represents roughly 100 congregations across the North Star State.