The PATHWAYS of PAUL Pilgrimage, Sept. 18-28, 2019 -- Information

 
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   The Dead Sea Scrolls series

 

   St. Nicholas School, Kinsley, Advent Cantata, Dec. 7, 2008

 

   

 

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Scroll to bottom to navigate to different departments

Falling into the trap of

Predatory lending

By Doug Weller
The Register (Diocese of Salina)

SALINA — Predatory lending has emerged as a concern of the Catholic Church in Kansas.    
In one of four election-year videos issued this week by the bishops in Kansas, Salina Bishop Edward Weisenburger asks Catholics to urge their state lawmakers to consider stricter regulations to protect vulnerable citizens.
The video, which is available at kscathconf.org, also includes presentations on “Marriage,” “Defending Life,” and “Religious Freedom,” by Archbishop Joseph Naumann of Kansas City, Bishop John Brungardt, and Bishop Carl Kemme of Wichita, respectively.
Catholic Charities of Northern Kansas has been working to help victims of predatory lending since 2007. It launched a new program last year, the Kansas Loan Pool Project, that offers a structured loan to qualified participants to help them escape extreme high-interest borrowing known as “payday” or “paycheck advance” loans.
Those lenders have moved aggressively into Salina, Hays, Manhattan, Junction City and Concordia. Online lenders can reach anyone with access to the Internet.
Catholic social teaching doesn’t prohibit the charging of reasonable interest on loans. However, it does consider exorbitant interest — usury — as wrong.
In the video, Bishop Weisenburger says usury is one of the practices “that are plainly harmful to the poor and simply contrary to the teachings of Christ.” “It’s always been a Church teaching, but we never talk about it anymore,” added Michael Schuttloffel, executive director of the Kansas Catholic Conference, the public policy arm of the four Kansas bishops.
“Charging an unjust interest rate as being wrong was universal,” he said, but that has changed.
Even Pope Francis weighed in on the topic earlier this year, calling usury “a dramatic social ill.”
“When a family has nothing to eat, because it has to make payments to usurers, this is not Christian, it is not human,” the pope said. “This dramatic scourge in our society harms the inviolable dignity of the human person.”
Kansas is among 35 states that have few or no regulations on payday lending.
The Consumer Federation of America, an association of non-profit consumer organizations, reports that in Kansas, loans are capped at $500, with the finance rate and fees capped at 15 percent. Only two loans can be outstanding at one time.
That doesn’t sound unreasonable until you understand how payday lending works, explains Claudette Humphrey, who directs the Kansas Loan Pool Project for Catholic Charities.
An individual can secure a $500 loan with no credit or background check, using only proof of income, hence the “payday” or “paycheck advance” term. The loan typically is due in 14 days, with up to 15 percent interest charged, resulting in a balloon payment of $575.
Most borrowers can’t pay back the loan in full in 14 days, so a new loan is issued to pay off the first loan, with interest then charged on the new loan balance. That 15 percent interest rate on a two-week loan compounds to 390 percent over the course of a year.
“Every two weeks, it’s a brand new loan. That’s how they get away with it,” Humph­rey said. “Some people stay in it for over a year, some two years, some three years.”
Title loans use the vehicle title as collateral and typically must be repaid in a month. Although the loan usually is for less than the vehicle is worth, the borrower risks losing the vehicle if the loan isn’t repaid on time. The Consumer Federation of America says that for a typical title loan, annual interest can compound to 300 percent.
Payday lenders target people who likely can’t pay back the loan, Humphrey said. People who have good credit can go to a bank or credit union or even use a credit card for a cash advance, she explained.
Many payday borrowers are on fixed incomes and feel they have nowhere else to turn, while others with relatively good-paying jobs have expenses that exceed their incomes because they haven’t made smart financial decisions.
People don’t think about the consequences of a payday loan, even if they realize the risk.
“It’s hard to explain. It’s a horrible feeling” to be that desperate for cash, said Humphrey, who found herself in the same situation several years ago.
“You know you need the money, and here’s a place that will give it to you. All you’re thinking is, ‘I’m keeping the lights on,’ ‘I’m fixing my car’ … whatever it is,” she said. “You don’t think two weeks ahead.”
Humphrey said she was able to escape the cycle of trying to pay off two payday loans by asking her family for help. Many borrowers, however, don’t have that support system and have nowhere to go.
People have had their wages garnished, lost their vehicles or been evicted or had their utilities cut off, she said.
At least five clients have told Humphrey that if it hadn’t been for the Kansas Loan Pool Project, they would have considered suicide.
“This project literally, and sadly, has saved lives,” she said.
Catholic Charities first began working to help victims of payday lending in 2007. The Salina Area Savings and Education Loan Program, which still operates, combines funding from University United Methodist Church in Salina and loan processing by Bennington State Bank to offer short-term loans to help Saline County residents get out of high-interest debt and establish credit. Catholic Charities screens applicants for the loans.
But Catholic Charities wanted to expand the assistance throughout the Diocese of Salina, as well as offer one-on-one financial counseling and education for clients.
A grant from the Catholic Campaign for Human Development, facilitated by Catholic Rural Life, funded the administrative costs for the Kansas Loan Pool Project. The United Methodist Health Ministry Fund donated $25,000 and Catholic Charities fronted another $25,000 to guarantee the loans; that money is kept on deposit. Sunflower Bank of Salina agreed to administer the loans.
Initially, 18-month loans of $1,000 were available, but to help provide assistance to more people, loans have been scaled back to $700 for 12 months.
Once an applicant is approved, Humphrey meets with the borrower monthly to help craft a budget, ensure that loan payments are made on time and learn more about financial management.
That monthly connection is key to the program’s success, says Michelle Martin, executive director of Catholic Charities of Northern Kansas.
“No one else at this time is doing this,” Martin said of the case management her office is providing.
She wants to expand the program, but Humphrey’s time is consumed by the 32 open loans she currently manages.
“To do it right, we need to expand it to all of our 31 counties,” Martin said, but so far the funding isn’t available. The CCHD grant ends next June, so her staff is focusing efforts on trying to replace that funding first before looking for more money to expand the project.
Although there have been some loan defaults, Humphrey considers the program a success.
“One client paid off her loan, which raised her credit rating, and she was able to secure a conventional loan for a car without having a co-signer,” Humphrey said. The woman called Humphrey to share her good news.
Both Humphrey and Martin said there shouldn’t have to be a Kansas Loan Pool Project.
The 15 states that have restricted or banned payday lending have seen the amount of money owed by borrowers drop significantly.
The Pew Charitable Trust reported last October in the third of a three-part study that in Colorado, where lump-sum repayment was banned and replaced by installment payments over six months, borrowers paid 42 percent less annually than under the conventional model.
The Pew study found that 12 million people annually spend more than $7 billion on payday loans. On average, a borrower takes out eight successive loans of $375 each per year, spending $520 on interest.
Its survey found 5.5 percent of adults nationwide have used a payday loan in the past five years. In Kansas, that number is 8 percent.
In states where payday loans have been restricted, the Pew study found that most borrowers chose other options: They cut back on food and clothing expenses, delayed paying some bills, borrowed from family or friends, or sold or pawned possessions.
And, in the states that have restricted payday lending, borrowers have not sought similar loans through online sources, the Pew study showed.
The Pew study urges the 35 states that have few restrictions on payday lending to:
• Limit payments to an affordable percentage of a borrower’s periodic income. The Pew study indicates that payments above 5 percent of gross income are often unaffordable. One of Humphrey’s clients had a monthly income of $800 but had been approved for a second $500 payday loan while her first $500 payday was still active.
• Spread costs evenly over the life of the loan.
• Guard against harmful repayment requirements or collections practices.
• Require concise disclosures that reflect periodic and total costs upfront.
• Set maximum allowable charges.
The Consumer Financial Protection Bureau, established by Congress, says it recognizes that demand exists for small-dollar loans.
“These types of credit products can be helpful for consumers if they are structured to facilitate successful repayment without the need to repeatedly borrow at a high cost,” CFPB stated in April 2013. “However, if the cost and structure of a particular loan make it difficult for the consumer to repay, this type of product may further impair the consumer’s finances.”
The federal government has stepped in by capping interest charged on loans to U.S. military personnel at 36 percent. However, states have the right to govern their own banking practices for non-military residents.
Both Schuttloffel, head of the Kansas Catholic Conference, and Martin of Catholic Charities say the likelihood of the Kansas Legislature taking any action is slim.
“The Legislature probably won’t do anything,” Schuttloffel said.
Martin said too many other issues, such as educational funding, have more importance in Topeka than helping victims of payday lending.
In addition, restricting lending practices is seen as anti-business, and under the current legislative environment, those issues tend to be off the table, Martin added.
“The federal government has capped the interest rate for military members, so it can be done,” Martin said.
Despite the lack of state regulation and uncertain funding for the Kansas Loan Pool Project, Martin and Humphrey are determined to keep the program operating.
“It’s the right thing to do,” Martin said. “There are too many people out there in need.”

Past Issues

Dec. 9, 2018

Nov. 25, 2018

Nov. 11, 2018

Oct. 28, 2018

Oct. 14, 2018

Sept. 16, 2018

KEYWORDS, PHRASES: 2018 Golf Classic; student athletes; physically challenged; Leonard Stegman; Lesson in forgiveness; Sending us on a mission

Sept. 2, 2018

KEYWORDS, PHRASES: Priest crisis; Scandal; Opioid addictions; Seeds of Suicide; Leightons; St. Anne; Vincke; seminarians; Dominican Sisters; Stewardship Conference; Dead Sea Scrolls; PSR programs; Roe V. Wade

 

August 12, 2018

KEYWORDS, PHRASES: Prayer and Action; Totus Tuus; Janee Bernal; Diana Ramirez; Heidy Ramirez; Bishop Gilmore honored for 20 years ministry; suicide; contraception and abortion; Dead Sea Scrolls; Humanae Vitae; certification in youth ministry; Chuck Weber; Cathedral rectory chapel; Sister Viola Heichelbech; Adam Urban

July 15, 2018

KEYWORDS, PHRASES: Immigration Protest/Rally; Faith and Light Fiesta; Seeing the Dead Sea Scrolls; Corpus Christi procession; Prayers for priests; Sisters turn 100; Michael Brungardt; Gerald Vincke; Massacre in San Salvador; Action for Alex 

 

June 3, 2018

KEYWORDS, PHRASES: Parish Pray for Priestly Vocations; Appeal reaches $10 million; Gangs; Seminarians; Pam Willis; Why I like being a priest; Happy Father's Day; Patricia Lujan; Tyler and Rachel Bennett; Adoption Protection Act.

May 20, 2018
KEYWORDS, PHRASES: Track meet; Beloved Sinners; Benjamin Martin retires; Smiles; Future of Fortune Telling; Hoisington mission; DofI; Getting Equipped; Spring Social; First Communion; Confirmation
KEYWORDS, PHRASES: Track meet; Beloved Sinners; Benjamin Martin retires; Smiles; Future of Fortune Telling; Hoisington mission; DofI; Getting Equipped; Spring Social; First Communion; Confirmation

May 6, 2018

KEYWORDS, PHRASES: Archbishop Romero; Seeing, Touching, Tasting; Exhortation; Father Patrick Conroy; Happy Mother's Day; A child on your doorstep; Vibrant Ministries Grant; From the heart of a young father; Love Gives Life; Roman Holiday; Smartphone; retirement
Fossil Hunting

 

April 15, 2018

 KEYWORDS, PHRASES: Easter Vigil; Angelica Village; Colorado woman; The art of anger; Cimarron Couple; Staats; Adoption; 

Father Ultan Murphy anniversary; Coughlan; Spiritual Advisor to Hoodlums; Woman of Courage; Oration contest; Darcy Feist  

 

April 1, 2018

 

 KEYWORDS, PHRASES: Defending Adoption; Led by the Spirit; Knights; ABC Pregnancy Center;
Memorial of Mary; Homeless; Relics; Down syndrome abortion; Chrism Mass

 

March 18, 2018

KEYWORDS, PHRASES: SKYAC; Aleksandr Men; Fasting for Priestly Vocations; Uganda; School for deaf; Rannah Evetts; Oberle; Rachel and Doug Trombley; Oscar Romero; Paul VI; DACA

 

 

March 4, 2018

KEYWORDS, PHRASES: Fasting for priestly vocations; Father Juan; Fasting and prayer;
Quest Weekend 2018; DACA; With God, anything is possible; Homelessness in our communities; Rhubarb, Kansas;
What's the point of fasting; Rite of Election; same-sex couples

 

Feb. 18, 2018

KEYWORDS, PHRASES: Catholic Schools Week; Rachel Doll; Ellinwood; Great Bend; Garden City; Ness City; Dodge City; Sister Rita Schwarzenberger; Nigeria; Bishop Hermes; Fasting for Priestly Vocations; World Day for Consecrated Life; 50th Anniversary St. Dominic School; What will life be like in 50 years?

 

 

Feb. 4, 2018

 

KEYWORDS, PHRASES: March for Life; Tracy and Ross Smith; Adoption; Vibrant Ministries; Faith and Light;
Pro-Life; Mortal sin to discard elderly; DACA; Abortion; Dreamers; Human Trafficking

 

Jan. 21, 2018

 KEYWORDS, PHRASES: Louise Korbe; Anne Frank; Miep Gies; Home Heat; Father Solanus

 

Jan. 7, 2018

KEYWORDS, PHRASES: Good news and kingdom living; dreamers; Sister Teresa Orozco; Infant Adoption; Elderly; a moral conundrum; seminarian; feast of Our Lady of Guadalupe

 

Dec. 17, 2017

KEYWORDS, PHRASES: Celebrate Christmas 'unplugged'; Msgr. Matthew Smith; Klan; Catholic Charities Annual Appeal; Fr. Larry Rosebaugh; A Guadalupe Encounter; Laci and Joe Salazar; A Christmas Wish; Adoption; Confession; Advent; EWTN; Christmas Blues; Tilma; Pittsburgh; PSR

 

Dec. 3, 2017

 KEYWORDS, PHRASES: 2017 NCYC; Wheel of Balance; Marita Rother; Stanley Rother; slavery; trafficking; Windthorst water damage; martyred priests; confession; reconciliation; How to go to confession; recipe for codfish cakes; Catholic schools; appeal

 

Nov. 19, 2017

 KEYWORDS, PHRASES: Saints; Father Kola; Black Elk; Giving Tuesday; velvet Elvis; a Slice of Time; Dani Sandoval; Mexican Village; Father Tim Hickey; New faces at chancery; priests share thoughts on confession; Wheel of Balance

 

Nov. 5, 2017

KEYWORDS, PHRASES: Matrimony Anniversary Mass, 2017; Riebel; Faith and Light; Scripture Day; Sex in the Bible; Quilt, Mexican Village Story; Finance; Fatima pilgrimage; Fowler church window renovation; Medicare; Crazy Glue


Oct. 15, 2017

KEYWORDS, PHRASES: Father Francis Jordan; Sister Renee Kirmer; Father Rother beatified; religious liberty; RCIA Kansas; V Encuentro; Bishop Weisenburger; Daughters of Isabella; Bishop Gerber Science Center


Oct. 1, 2017

KEYWORDS, PHRASES: De Colores; Rebein; Dreamer; Pies; Kellner; Code Quilts; Sister Crucita; Feezor; Formed.org; Sin and pain

 

 Sept. 17, 2017

 

 KEYWORDS, PHRASES: Sister Lucy Fidelis; Underground Railroad; Sister Irene Hartman; DACA; new priests; teachers; Volunteer of the Year; Golf Classic; St. Francis Xavier; St. Nicholas Parish Center, Kinsley; seminarians; Knights Lite; Stewardship Day 2017

Sept. 3, 2017

Aug. 13, 2017

 KEYWORDS, PHRASES: Coronado Cross; Masada; Moody Gardens; Elders; Rother; undocumented children; cages; year of mercy; Kumi; Hollywood makeup artist; New Mexico; refugee women.

July 16, 2017

KEYWORDS, PHRASES: Summer camp; tithing and almsgiving; Bill Baalmann; Nathan Schaller; Jubilarian Sisters; Sister Hortencia Rodriguez; Sister Petrona Stockemer; Sister Denise Sevart; Convocation of Catholic Leaders; Mother talks about her son entering seminary; Arcoiris; Youth group travels to Colorado Springs; Major Phillip Roth

June 11, 2017 (Updated)

Ordination; Mark Brantley; Jacob Schneider; Father's Day; Thanks, Dad!; Appeal; Sister Mary Martin Weaver; Bishop Maralit; Budget; Trafficked women; Deacon Michael Brungardt; Dead Sea Scrolls; softball; Father Urban retirement; Sister Kravec retirement; Father Mazouch retirement; Authentic Joy; Pris Climate Accord; Jack Schramm; Pieta.

May 28, 2017 (Updated)

 

Grateful Hearts; MSFS Provincial; Reddy; Reif; Opossum; Dead Sea Scrolls; Our Lady of Fatima; Jorge Herrera, Jr.; Cursillo; Kough; First Communion; Confirmation

May 14, 2017

Esteban Hernandez; citizen; Lilly Ann Rein, Amberly Jimenez, Mother's Day; peacock; Quattrocchi; President Kennedy; Teen Moms; Junior High Youth Rally; Encounter With God's Call; granny/nanny; seniors' contributions; tornado anniversary; harvest; healthcare; Mr. Brown; Store-bought teeth; Louis and Zelie Martin; Father John Sullivan; Irish priest whose prayers could heal; Mexican beauty queen; Esmaralda Gonzalez; religious life

April 30, 2017

   KEYWORDS, PHRASES: Easter Vigil; bully; TEC; Father Marvin Reif; Bet'sie; What makes a hero?; St. Mary of the Plains; tornado

Easter, 2017

 KEYWORDS, PHRASES: SKYAC; Honorable courtship; footsteps of migrants; CHRISM Mass 2017; honoring priests; Encuentro Cross blessed; Daughters of Isabella State Convention; Fatima pilgrim statue; Mary Sharon Moore interview; Senate advances pro-life measures; love must be at the core of family life; Father John Forkuoh's car story; Confirmations; Sisters of Concordia; CNN hero Father Khalil Jaar

March 26, 2017

KEYWORDS, PHRASES: From the heart; kidney; Rother; Friar Carmelo; Schnauzer; Lauren Seachris; Lauren's Treat; fire; Guatemala; immigration; Lenten Regulations 1888; Hot Cross Buns; budget; Trump; Forkuoh; Seiwert; South Sudan; hot ashes

March 12, 2017

KEYWORDS, PHRASES: Refugees; immigrants; Gilbert Herrman; When you give alms'; Lent; Call to Continuing Conversion, Rite of Election; Charell and Jeremy Owings; adoption; Our Growing Church; Sisters of St. Joseph of Concordia; water; creation; Sudan; Darlow Lampe

Feb 26, 2017

 KEYWORDS, PHRASES: Night to shine; Immigration; immigrants; Knights of Columbus; Pete Gomez; this foreign mission; Creole; Robin Doll; Eagle Scout; Quest

Feb 12, 2017

KEYWORDS, PHRASES: Catholic Schools Week; March for Life; Pro-life; Executive Order; Secular Franciscan Order; teachers; Down Syndrome; Eagle Scout; Bronze Pelican

Jan. 29, 2017

KEYWORDS, PHRASES: Thank you, religious; SEEK 2017; homeless man to priest; Fourth Sunday; Secret Service to Sacred Heart; Dr. Gerard Brungardt; Martin Luther King; 110 year old nun; Toddler miracle; Letter from undocumented immigrant; health care; immigration

Jan. 15, 2017

KEYWORDS, PHRASES: Mary helps us share; Tighe donates home to Birthright; Pro-life billboard; Theobald Hattrup; Helen and Steve Eck; Pearl Harbor; Reigning Grace

Dec. 18, 2017

KEYWORDS: Feast of Our Lady of Guadalupe, 2016; Pope Francis Christmas schedule; 2016 high school youth rally; Aerospace engineer; Father Stanley Rother; Radio station; Dying girl's letter; Scout nominations; 12 days of Christmas

Dec. 4, 2016

KEYWORDS: Vocations Day; Pope Advent advice; Ex-prostitute; Spearville mission; Pilgrims v. Zombies; Face of God; Mission bazaar; Ness City fall festival; Rural health care; Archbishop Gomez; Bishops congratulate Trump

Nov. 20, 2016

Nov. 6, 2016

Oct. 23, 2016

Oct. 9, 2016


Sept. 25, 2016


Sept. 11, 2016

 
Aug. 7, 2016

July 10, 2016

June 12, 2016

May 29, 2016

May 8, 2016


 April 24, 2016

 April 10, 2016

 March 27, 2016

March 13, 2016

Feb. 28, 2016

 

Feb. 14, 2016


Jan. 31 , 2016

Jan. 17, 2016

Dec. 20, 2015

Dec. 6, 2015

Nov. 15, 2015

Nov. 1, 2015

Oct. 18, 2015

Oct. 4, 2015

Sept. 20, 2015

Sept. 6, 2015

August 9, 2015

July 12, 2015

Jun 14, 2015

May 17, 2015

May 3, 2015

April 19, 2015

Easter, 2015

 

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