Father Tim reports the clever devils who don't want to confront the inconsistency of their "family values" with their support for family-wrecking payday lenders are scrambling to kill House Bills 1223 and 1224:
My sources say that opponents got the two bills into committee quickly, before much press on their behalf could be generated. They will be heard tomorrow (Wed., Feb. 10) at 10 a.m. This probably spells defeat for HB 1223 (imposes fee and restricts customer abuse by lenders) & HB 1224 (caps the interest rate these lenders can charge), but confronting usury in South Dakota will take awhile [Fr. Timothy Logan Fountain, "'Pay day' (predatory) lender bills rushed to committee - contact members of the legislature ASAP," Northern Plains Anglican, 2011.02.08].
I agree with TLF+ and the sponsor of HB 1223 and 1224, Rep. Steve Hickey (R-9/Sioux Falls), that we need to protect South Dakota families from abusive payday lenders, just as the U.S. military protects its soldiers and their families from these predators. I also appreciate Father Tim's historically informed warning that beating usury will be a long, hard fight. Sioux Falls used to make a tub of money as the quickie-divorce capital of the country. The first Episcopal bishop in Sioux Falls, Bishop Hare, worked for years with many other people to get Pierre to reform the lax residency requirement that made divorce so easy here, then had to fight for several more years to keep that reform in place (rather like health insurance reform!).
The current fight on usury rings the bell tomorrow at 10 a.m. in the House Commerce and Energy Committee. Contact Chairman Solum, Vice Chair Conzet, and the rest of the committee members (that includes you, Mitch!) and tell them to vote for family values by voting for fair lending practices.
Note also the awkward silence from the conservative blogosphere on this issue. Dakota War College, Dakota Voice, Sibby, Ed Randazzo---all fellow travelers with Rep. Hickey---remain silent on these two God-fearing pieces of legislation. What gives, folks?
Correct me if I am wrong, but wasn't interest capped at 3% among fellow Jews during biblical times? Wasn't it higher for Gentiles?
36% is a rate high enough to recoup your losses on bad loans.
Thad, I'll yield the floor on the Scriptural question to better-read Biblical scholars. But I would agree with you that 36% is more than enough interest to cover the cost of doing business, especially if you don't make loans to bad risks. The Army certainly thinks so. I hope House Commerce agrees!
What will be sad is that there will be more elected representatives that will worry about payday lenders than they do about the long term welfare of students, teachers, seniors and those most in need. What's the old saying, Karma's a bitch, or something like that. Thank you Steve Hickey for providing a little moral compass here.