Supplements

Commentary

By Liz Quirin

Voices Raised for the Poor in Our Midst

From predatory lending to life-saving loans, St. Vincent de Paul is putting advocacy to work. It’s one thing to write letters and try to circulate information about the dangers of using payday or title loans for unexpected problems with cash flow. We all know what it’s like to find an unexpected bill in the mail or have to fix something we didn’t even have on our radar. If a tire is ruined and we have to replace it, or the air conditioner goes out, or some other problem arises that we have to pay for, we manage.

We just add that to the list, wish we didn’t have to do it and keep going. It doesn’t work that way for people living closer to the edge of financial disaster than we ever want to be. For them, a bad tire, an extra medical bill, a back-to-school book bill or some other one-time unexpected expense can send them to what people used to call loan sharks but can now refer to as payday lenders.

After looking at some of the repayment amounts for these personal loans, I was stunned at the money it would take to repay the loans. Some of the interest amounted to 200 percent or more than 300 percent, and it was compounded if the payment was late. This ought to be illegal, but it isn’t. Calling it “predatory” doesn’t seem to adequately describe the practice, and yet people who are desperate continue to take out these loans.

Social justice calls us to speak out against these practices and the people that feed on another’s desperation. We have, and we do. But now, today and as long as they can, St. Vincent de Paul is doing more than crying out against this system of financially ruining the chances of the working poor to stay afloat. They’re offering an alternative with these loans that require the applicant to repay the loan and 3 percent interest. If you’re calculating this, it comes to less than $10.00 over the life of the loan. Now that’s incredible social justice in action.

If we want to be part of this, lay claim to taking action against shylocks that live in our midst and prey upon those least able to defend themselves, we can help. We can find out who the St. Vincent de Paul representative is in our parish or our deanery. Then we can donate to this program so that more people can be helped. When they started the program in July, they had about $20,000, and as of last week, they had processed about 100 applications, sending them to the Catholic & Community Credit Union to handle the paperwork and repayments.

The people working on these loans know some will default, but they are hoping that most will not, and they are trusting that they will be able to keep loaning money to others as these first loans are repaid.

We seldom have an opportunity to make a direct and positive difference in someone’s life, but right here, right now, we can.