14 consolidating payday loan 2016 dating

But few states are as saturated with these store-front lenders as Alabama.Carolyn Foster is with the Greater Birmingham Ministries.

14 consolidating payday loan 2016 dating-61

She and her husband are unemployed, have two handicapped children.

They survive on a $654 disability check and food stamps.

And then they scavenge tin cans and scrap metal to get by.

LUCKY SEVERSON, correspondent: Birmingham, Alabama—This is a demonstration against the state’s payday lenders—you know, those stores that offer short-term loans at exorbitant rates most often to poorer people who couldn’t get loans from banks or credit unions. They’re stealing from the people who can least afford to be stolen from.

There are nearly a thousand in Alabama alone, four times as many as there are Mc Donalds, in a state that has the third highest poverty rate. SEVERSON: Reverend Shannon Webster is pastor of the First Presbyterian Church in Birmingham. SEVERSON: Earlier this year, President Obama traveled to Birmingham to underscore his concern that payday lending is targeting and trapping the most vulnerable.

He met with faith leaders, including Reverend Webster.

REVEREND WEBSTER: There’s a moral and ethical injunction starting back in the Old Testament going all the way into the New Testament church.

There are injunctions against lending at interest in an exorbitant way.

SEVERSON: Payday lenders are not only an Alabama phenomenon.

Nationwide, each year about 12 million Americans spend more than billion on payday loans.

According to a study by the Pew Charitable Trusts, the average borrower takes out eight loans of approximately 5 and spends 0 in interest.

Tags: , ,