In some states, a debate over payday lending unfolds in the black church
The Rev. Frederick Newbill is not the typical face of the payday lending industry.
Recruited by Florida’s largest small-dollar lender, Amscot, the senior pastor at First Timothy Baptist Church in Jacksonville was among several faith leaders to visit the state’s capital this year to lobby for a bill loosening payday regulations.
The group helped secure a victory for an industry known for its high-cost, short-term loans that had been under assault by federal regulators for years. Their efforts also opened a rift among some of the state’s most influential faith leaders, many of whom had spent years opposing the spread of payday loans.
Black churches have become an unexpected battleground in the national debate over the future of payday lending. The Trump administration is reviewing a federal rule that threatens to cripple the industry, while payday lenders find themselves enmeshed in battles in multiple states over their business.
The debate often pits clergy against one another. Payday proponents in the church say the industry provides an important service after years of national banks pulling back from offering loans in regions with large minority or poor populations and black-owned banks all but disappearing.
The battle could affect the 12 million Americans who take out payday loans every year, according to Pew Charitable Trusts. Estimates suggest that between a quarter and a third of payday borrowers are black. Many traditional banks shied away from offering small-dollar loans after deeming them unprofitable and time consuming, industry analysts say. One of the industry’s most powerful regulators, the Office of the Comptroller of the Currency, took steps last month to encourage banks to compete directly with payday lenders again, but the industry is not expected to rush in, analysts say.
https://www.washingtonpost.com/business/economy/in-some-states-a-debate-over-payday-lending-unfolds-in-the-black-church/2018/06/06/5540c69c-52c5-11e8-abd8-265bd07a9859_story.html?utm_term=.41ca423377bf