Chicago Tools Provide Alternatives to Pay Day Loans

Chicago Tools Provide Alternatives to Pay Day Loans

Concerned that some parishioners were consistently getting too deep with debt to payday loan providers, Father Thomas Frayne of St. James Church came up with an answer couple of years ago.

A revolving was created by him, $1,000 fund from where parishioners or other people within the church’s community could borrow as much as $200, interest-free, for as much as a couple of weeks. The only catch: The debtor should have a relationship with Father Frayne.

“If someone knows you, your accountability is a lot greater,” he explained.

Although the church can simply make five loans at a right time, this has to date made 75, and just one debtor has defaulted. This system happens to be therefore well gotten that the Monsignor John F. Egan Campaign for Payday Loan Reform, a Chicago coalition specialized in providing alternatives to payday lending, recently honored the Southern Side church on with 1 of 2 Vision honors.

“There was both a supply and need part to the problem,” Father Frayne stated.

The Monsignor that is late John Egan formed the coalition of community teams, financial institutions, legislators, and churches in 1999 so that you can decrease the amount of people who have caught into high financial obligation by cash advance charges. Monsignor Egan passed away in May, but the coalition continues to work with dilemmas connected with payday lending. 자세히 보기