When should Secular act more like the Sectarian

Borrow $500. Pay back $600 in 14-days at 521 percent APR. Pay it back in 90-days and the interest rate charged exceeds the principle by 150 percent, if not more.

In Missouri, as in every other state of the Union and Canada (and I assume overseas as well) there are lending companies that provide a service generically called “pay-day loan.” These companies provide signature loans of $500 to $1,000 to those who need a short term financial boost and for those who cannot receive a loan from a traditional source because of past credit problems or owning no assets. The only requirements are having an active checking account, a job, and the ability to sign the loan documents.

These companies are, in fact, a necessary evil in some communities, especially in our current financial status. But there is a problem.

Though there are limits on the number of loans, the APR for these high risk loans average about 450 percent with highs being reporter over 1900 percent APR. For most trying to avert a financial crisis, this just adds to the problems for financial disaster.

Missouri is now offering a bill that would limit pay-day loan interest to 36 percent APR. HB-1294 was filed by state representative Mary Still, D-Columbia, and is moving nowhere fast. As of March 1, 2012, it has not been scheduled for its first reading in the House chambers. The reason will be discussed in a bit.

Read more: When should Secular act more like the Sectarian

David Rosman’s newest book, A Christian Nation? An examination of Christian nation theories and proofs is now available through Amazon.com in paperback or eBook versions.

You can invite David to speak to your group or organization. For more information, please contact him at Speaker@InkandVoice.com

About David Rosman

David Rosman is an award winning editor, writer, professional speaker and college instructor in Communications, Ethics, Business and Politics. You can read more of David’s commentaries at ColumbiaMissourian.com, InkandVoice.com and NYJournalofBooks.com.
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