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.
A revolving was created by him, $1,000 fund from where parishioners or other people into the church’s community could borrow as much as $200, interest-free, for approximately a couple of weeks. The only catch: The debtor will need to have a relationship with Father Frayne.
“If someone knows you, your accountability is significantly greater,” he explained.
Although the church is only www.worldpaydayloans.com/ able to make five loans at a time, it offers 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 lending that is payday recently honored the Southern Side church on with 1 of 2 Vision honors.
“There appeared to be both a supply and need part 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 in an attempt to lessen the number of individuals whom have caught into high financial obligation by cash advance charges. Continue reading Chicago Tools Provide Alternatives to Pay Day Loans