Resolution on Payday Loans in Alabama

In two weeks Southern Baptists from all over Alabama will gather at Lakeside Baptist Church for the Annual Meeting of the Alabama Baptist Convention. We will celebrate what God has done among us in the last year, hear of plans for the future, and elect officers to lead us for the next year. Each year the State Convention passes resolutions. These non-binding statements express the concerns and opinions of Alabama Baptists on important events in our churches and culture.

This year I wrote two resolutions and submitted them to the Resolutions Committee. The men and women who make up the committee will review them and choose to present them to the convention as written, present them with modifications, or choose not to present them at all.

The resolution below covers the issue of payday loans in Alabama. Earlier this year I wrote about the large interest rates payday loan companies can charge and how it creates a cycle of dependency among the state’s needy. Unfortunately attempts at reform have stalled in the Alabama Legislature. This resolution calls on state lawmakers to reform the payday loan system in Alabama and encourages churches to minister to the poor and continue to teach about financial stewardship.

Resolution on Pay Day Loans in Alabama

WHEREAS the Bible condemns gaining wealth through usury; and

WHEREAS the writers of Scripture warn about gaining wealth through exploiting the poor among us; and

WHEREAS the Bible warns about the dangers of debt and tells us that the borrower is slave to the lender; and

WHEREAS the state of Alabama allows Payday lenders to charge an annual interest rate of four hundred fifty-six percent;

WHEREAS the state of Alabama allows Title Pawn lenders to charge an annual interest rate of three hundred percent; and

WHEREAS the Federal Protection Credit Bureau found that seventy-five percent of payday loans were given to people who take out at least ten loans a year, creating a cycle of indebtedness; and

WHEREAS Alabama has the highest number of title lending outlets per capita; and

WHEREAS legislative attempts to cap interest at thirty-six percent have failed; be it therefore

RESOLVED, that the messengers to the Alabama Baptist State Convention meeting at Lakeside Baptist Church on November 11th and 12th, 2014 oppose the exploitation of our neighbors through predatory lending; and be it further

RESOLVED that we encourage Alabama legislators to pass a bill capping payday and title loan interest rates at thirty-six percent annually; and be it further

RESOLVED that we encourage Alabama Baptists to contact their state legislators to voice their concerns about this issue; and be it further

RESOLVED that we encourage Alabama Baptist churches to teach their congregations about responsible stewardship and the pitfalls of indebtedness; and be it finally

RESOLVED that we send a copy of this resolution to the Governor, President Protem of the Senate, and Speaker of the House.