There are already 16 states, as well as the District of Columbia, who have capped the interest rate at 36% percent or lower, they said, noting that residents of these states now "use various methods to address budgetary shortfalls – such as utility payment plans and credit cards."
As usury is often condemned in the Bible, they said, the issue is a concern of the Church. They urged parishioners, Church leaders, and government officials to take a stance against payday loans. They said actions should be taken to educate people on stewardship and responsible credit use.
"Scripture condemns usury and teaches us to respect the God-given dignity of each person and to love our neighbors rather than exploiting their financial vulnerability. Thus, just lending is a matter of Biblical morality and religious concern. Fairness and dignity are values that should be respected in all human relationships including business and financial relationships."
The Church has consistently taught that usury is evil, including in numerous ecumenical councils.
In Vix pervenit, his 1745 encyclical on usury and other dishonest profit, Benedict XIV taught that a loan contract demands "that one return to another only as much as he has received. The sin rests on the fact that sometimes the creditor desires more than he has given. Therefore he contends some gain is owed him beyond that which he loaned, but any gain which exceeds the amount he gave is illicit and usurious."
In his General Audience address of Feb. 10, 2016, Pope Francis taught that "Scripture persistently exhorts a generous response to requests for loans, without making petty calculations and without demanding impossible interest rates," citing Leviticus.
"This lesson is always timely," he said. "How many families there are on the street, victims of profiteering … It is a grave sin, usury is a sin that cries out in the presence of God."