The Need for Principles for Just Lending

Each year, many households face financial crises. Over the last several decades, high-cost lending to those in need has increased significantly. More than 20,000 payday and car title loan stores operate nationwide. Taking advantage of loopholes and a weakening of traditional usury laws, many of these lenders now offer loans at 300% APR and higher. Far too often, the result is families trapped in a cycle of debt with even less ability to pay the bills, keep food on the table, save for the next emergency, or provide for their children.

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.

We urge churches, lenders, individuals and government to each do their part to teach stewardship, offer responsible products, use credit wisely, encourage just lending and put an end to predatory loans. We call for an end to the exploitation of households and families through the payday debt trap.

Principles for Just Lending

  • Individuals should manage their resources responsibly and conduct their affairs ethically, saving for emergencies, and being willing to provide support to others in need.
  • Churches should teach and model responsible stewardship, offering help to neighbors in times of crisis.
  • Lenders should extend loans at reasonable interest rates based on ability to repay within the original loan period, taking into account the borrower’s income and expenses.
  • Government should prohibit usury and predatory or deceptive lending practices.

Please complete the form below to endorse the Principles.

Endorsers’ names will be shared periodically with policy-makers and public officials. Faith for Just Lending will not otherwise share, publish or distribute your contact information. Faith for Just Lending also does not send spam email, but may periodically contact you with relevant updates and opportunities to advocate for victims of predatory lending.

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