Community leaders want Congress to regulate payday and title loans
Many community leaders are disappointed with Washington after Congress failed to take action on regulating payday and auto title loans.
The Rev. Placido Rodriguez the Catholic bishop of the Lubbock Diocese says these types of businesses are exploiting the poor, charging abnormally high interest rates to borrowers.
"It's an educational process," Rodriguez said. "This practice that is so predatory and yet at the same time creates so much hardship for families and so we are beginning this."
The bishop says he just wants a fair and even playing field for both the lenders and the borrowers.
According to an industry group called The Community Financial Services Association of America, 41 percent of payday loan customers earn between $25,000 and $50,000 a year and 39 percent report incomes of $40,000 or more.
It notes the typical fee charged by payday lenders is 15 percent for a two-week duration.