_\” CATHOLIC
»\, CONFERENCE
> OF KENTUCKY
Cap Payday Loans at 36%
The Catholic Conference of Kentucky has been among those in the advocacy
forefront of combating poverty. Capping payday loans at 36%, so that those in
need of financial assistance are not victimized by usurious interest rates ap-
proaching 400%, is a priority.
PREDATORY PAYDAY LENDING IS A DEBT TRAP
PROTECT KENTUCKY FAMILIES FROM PAYDAY LENDING!
For the faith community, predatory interest rates approaching or
exceeding 400 percent are immoral. The Catechism of the Catholic
Church condemns usurious dealings: “Those whose usurious and
husband avaricious dealings lead to the hunger and death of their brethren
eaewicueee) in the human family indirectly commit homicide, which is imputable
to them.” #2269.
Payday loans are predatory loans because of the terms of the
a yas amassing loan: interest rates approaching or exceeding 400 percent victimize
big 0 refi- those seeking temporary relief from difficult economic circum-
eiecme stances. Many individuals find themselves compelled to take out
multiple loans to meet the obligation created by the initial loan re-
sulting in a debt trap for the borrower. Current public policy in Ken-
tucky permits usurious interest rates to be charged to consumers
and must be changed. Public policy is intended to protect the pub-
lic from outrageous practices. Kentucky's public policy must put an
end to the egregious practices of the payday loan industry.
The Catholic Conference invites you to join us in trying to protect
Kentucky families from these predatory practices. In 2011 we will
work to pass legislation like Congress passed to protect military
CONTACT YOUR STATE LEGISLATORS
personnel from the payday loan industry that preyed on them. Call: 1-800-372-7181 toll free and the person
who answers will take down your message
We will support legislation that contains the following provisions: and deliver it to your State Senator and/or
« Interest on all payday loans shall not exceed an annual percentage State Representative. If you do not know wh
that is, that is o.k. The person will help iden-
tify him or her for you.
rate interest of 36%.
« Interest includes all charges payable by a customer, including fees,
charges, renewal charges, credit insurance premiums, and any ancil-
lary product sold in connection with the payday loan. .
* Annual percentage rate is defined as under the federal Truth in Lend- Mie ugiMMM AMUSE Si lel co
ing Act. .
* A payday lender shall not engage in any device or subterfuge to The TTY Message Line is 1-800-896-0305
evade the 36% interest rate limit, such as disguising payday loans as
personal property sales/leaseback transactions or as cash rebates You can fax a message to 1-502-564-6543.
for an installment sale of goods or services.
* Making payday loans in violation of the key provisions of the Act shall URGE YOUR STATE SENATOR
be unlawful under the Kentucky Consumer Protection Act, and all
rights and remedies under that law will be available to a customer. AND STATE REPRESENTATIVE TO
If the interest on a payday loan exceeds 36% APR, a customer may CAP PAYDAY LOAN INTEREST
also sue under the general usury statute. RATES AT 36%
1042 Burlington Lane @ Frankfort, Kentucky 40601 @ 502-875-4345 @ Fax: 502-875-2841 @ E-mail: cckstaff@ccky.org @ www.ccky.org
