CHICAGO — Concerned that some parishioners were certainly getting too deep with debt to payday loan providers, Father Thomas Frayne of St. James Church created an answer 2 yrs ago.

A revolving was created by him, $1,000 fund from where parishioners or other people within the church’s community could borrow as much as $200, interest-free, for approximately a couple of weeks. The only catch: The debtor need a relationship with Father Frayne.

“If someone understands you, your accountability is significantly greater,” he explained.

Although the church can simply make five loans at a time, this has to date made 75, and just one debtor has defaulted. This system was therefore well received that the Monsignor John F. Egan Campaign for Payday Loan Reform, a Chicago coalition specialized in supplying alternatives to payday lending, recently honored the South Side church on with one of two Vision honors.

“There appeared to be both a supply and need side to the problem,” Father Frayne stated.

The belated Monsignor John F. Egan formed the coalition of community teams, finance institutions, legislators, and churches in 1999 so that you can reduce steadily the amount of people whom have caught into high financial obligation by pay day loan charges. Continua a leggere