Payday lending really pulls in people who need help and feel they have nowhere else to turn.
The Rev. Lloyd Fields, pastor of Greater Gilgal Missionary Baptist Church in Kansas City, Missouri, remembers when he turned to that type of financing.
Now 73 years old, he can remember a half-century ago when he was a married deacon with a wife and four children to support. He had a mentor in his denomination, another deacon, “If I ever needed anything, I could always go to Deacon Williams,” Rev. Fields recalled. “But after so many times going to him, I was embarrassed to go to Deacon Williams. So I went to the payday loan company.”
Fifty years later Rev. Fields cannot remember how much he needed, but it was for necessities. “I had a low-paying job and a family. I needed money to pay the light bill, the gas bill, to keep food in the house. And I didn’t have adequate credit to go to the upstanding loan companies.”
Rev. Fields can’t recall the interest rate he was charged. Not that it mattered at the time to him. “I didn’t know. I didn’t care,” he said. “It was the max. And I always had to borrow up to the max,” because as another two weeks passed, he didn’t have enough money to pay off the loan, not to mention the mounting interest.
The poor are the most vulnerable to payday lending schemes. (CNS/Reuters)
For Rev. Fields, salvation came in the form of a better-paying government job. And with the job came the opportunity to join a credit union. When he went to the credit union, he got a bit of bad news: “They told me I had to be employed for six months before I could join,” he recalled. By this time, he had gone to a second payday loan company to pay off the first one.
But “the first day after the sixth month,” Rev. Fields returned to the credit union to join. He got a loan to consolidate his payday-lending debts, and the credit union “put me on a payroll deduction. It was one of the happiest days of my life.”
Another Kansas City resident, Elliott Clark of Christ the King Parish, told of his five-year struggle to pay off his payday loan in an op-ed article that appeared in the Kansas City Star. It can be read by going to
Rev. Fields, (Read More)