finances

Payday loans and churches: RNS delivers a fascinating trend piece with a familiar byline

Several months ago, the Washington Post wrote about a debate over payday lending unfolding in the black church.

The Post described how African-American congregations had “become an unexpected battleground in the national debate over the future of payday lending.”

Unfortunately, I don’t think we ever ended up commenting on that piece here at GetReligion. It ended up in what we call our “guilt folders” — those stories we'd like to mention but for whatever reason never get around to.

But today offered a perfect excuse to bring up that past report: Religion News Service published a fascinating trend piece on churches nationwide using political pressure and small-dollar loans to fight predatory payday lending.

The compelling lede:

(RNS) — Anyra Cano Valencia was having dinner with her husband, Carlos, and their family when an urgent knock came at their door.

The Valencias, pastors at Iglesia Bautista Victoria en Cristo in Fort Worth, Texas, opened the door to a desperate, overwhelmed congregant.

The woman and her family had borrowed $300 from a “money store” specializing in short-term, high-interest loans. Unable to repay quickly, they had rolled over the balance while the lender added fees and interest. The woman also took out a loan on the title to the family car and borrowed from other short-term lenders. By the time she came to the Valencias for help, the debt had ballooned to more than $10,000. The car was scheduled to be repossessed, and the woman and her family were in danger of losing their home.

The Valencias and their church were able to help the family save the car and recover, but the incident alerted the pastoral duo to a growing problem: lower-income Americans caught in a never-ending loan cycle. While profits for lenders can be substantial, the toll on families can be devastating.

Now, a number of churches are lobbying local, state and federal officials to limit the reach of such lending operations. In some instances, churches are offering small-dollar loans to members and the community as an alternative.


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From faith and forgiveness to a furor over finances at Charleston's Emanuel AME Church

Follow the money.

Adhering to that old journalistic adage pays off for Pulitzer Prize-winning reporter Jennifer Berry Hawes in yet another rock-solid story on Emanuel African Methodist Episcopal Church in Charleston, S.C.

This time, Hawes' coverage concerns not the faith nor the forgiving nature of a black congregation devastated by a white gunman's attack on a Wednesday Bible study.

Rather, the projects writer for The Post and Courier, Charleston's daily newspaper, digs into the touchy subject of church finances:

In the weeks after a suspected white racist gunned down nine worshippers in Charleston’s historic Emanuel African Methodist Episcopal Church, applause for the Rev. Norvel Goff Sr. swelled as talk of forgiveness inspired mourners nationwide.
Praise poured in — even mention of the Nobel Peace Prize — along with millions of dollars in donations to Emanuel AME Church and the families of the victims.
But others are coming forward to paint a much different picture of the man named interim pastor and now overseeing how the donations are doled out.
Across Goff’s path of past churches, from New York to Columbia to Charleston, accusations of poor financial oversight swirl amid lingering questions about how he is handling the huge pot of donations at Emanuel AME.
Among them, a woman who served as secretary to the Rev. Clementa Pinckney, slain pastor of Emanuel AME, said she was terminated after raising concerns about the oversight of incoming donations.
And several members of Goff’s most recent church, Reid Chapel AME in Columbia, contend their former pastor took out large mortgages against the church without proper permission while amassing federal and state tax liens that reached $200,000.
Similarly, the pastor who succeeded Goff at his previous church, Baber AME in Rochester, N.Y., said Goff also left it saddled with debt and hard feelings among members.

After that broad introduction, Hawes methodically presents the facts and accusations in a 2,700-word investigative piece that is both hard-hitting and fair.


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