CHICAGO — Concerned that some parishioners were consistently getting too deep with debt to payday loan providers, Father Thomas Frayne of St. James Church developed an answer couple of years ago.
He created a revolving, $1,000 fund from where parishioners or other people into the church’s community could borrow as much as $200, interest-free, for as much as fourteen days. The only catch: The debtor should have a relationship with Father Frayne.
“If someone understands you, your accountability is significantly greater,” he explained.
Although the church can just only make five loans at a time, this has to date made 75, and just one debtor has defaulted. This program happens to be very well gotten that the Monsignor John F. Egan Campaign for Payday Loan Reform, a Chicago coalition focused on supplying alternatives to payday lending, recently honored the Southern Side church on with 1 of 2 Vision honors.
“There appeared to be both a supply and need part for this problem,” Father Frayne stated.
The Monsignor that is late John Egan formed the coalition of community teams, finance institutions, legislators, and churches in 1999 so that you can decrease the number of individuals whom have caught into high financial obligation by cash advance costs.