To: Chester Daily News

Chester County Press

Philadelphia Inquirer

From: Georgiann Kerr, Chair Butler County Democratic Committee

Date: June 10, 2012

Subject: Payday lenders

On Saturday June 9th an editorial in the Butler Eagle alerted me to legislation introduced by Chester County State Republican Representative Chris Ross that would allow payday lenders to operate in Pennsylvania. Editor John L. Wise III wrote a powerful editorial entitled, Payday Lenders Should not be Allowed to Operate in State. I am in absolute agreement with Mr. Wise’s assessment and such an accord between the two of us is not an everyday occurrence.

It’s worth noting that 17 states ban payday lending and in recent years, no state has passed a law allowing the business to operate legally within its borders. In fact, three states that once allowed payday lending, Ohio, New Hampshire and Arizona, have in recent years passed laws banning the practice. J.L.W.III

Payday lending is legalized loan sharking. These companies charge exorbitant interest rates on short term loans. The proposed legislation would allow lenders to charge 12.5 % on a two week note. That innocuous sounding 12.5% translates into an excessive, annual rate of 369%. Beyond the interest the borrower is required to pay a $5.00 fee for the opportunity to be fleeced.

This is not a new debate. Money lending for interest was called usury in the Bible and interest was forbidden when lending to the poor.

Exodus 22:25 says, “If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury”.

There always seem to be companies with money spilling from their pockets that are willing to exploit the most vulnerable among us and sadly there seem to always be politicians like Republican Chris Ross who are willing to stoop to the level of legislating in their behest. The Republican controlled House passed this legislation by a vote of 102 to 90.

I hope that the Pennsylvania Senate defeats this bill and I hope that the voters of Chester County’s 158th Legislative District replace Republican Chris Brown with Democrat Susan F. Rzucidlo when they vote in November.