CNA Staff, Dec 2, 2020 / 16:01 pm
A Michigan proposal to quadruple the maximum lending amount allowed for payday lenders would exploit the poor and trap many people in a cycle of debt when alternatives are available, the Michigan Catholic Conference has told a State Senate committee.
"People in the state may be unaware that charity agencies and low-income lending opportunities exist to assist those who are in dire circumstances and need quick access to cash," David Maluchnik, vice-president of communications for the Michigan Catholic Conference, said Dec. 1.
"High-interest loans that add greater financial burden to poor people should be opposed, as they contribute to an economy of exclusion rather than serving the dignity of the human person. The legislation before committee today is a form of modern-day usury; it would exploit individuals and families facing hardship and poses a danger to the common good," he said.
Maluchnik testified before the Senate Regulatory Reform Committee against House Bill 5097, proposed by State Rep. Brandt Iden, R-Kalamazoo. The bill passed the House of Representatives in May, with support from 15 Democratic lawmakers.