Predatory Lending & Self Sufficient Wages Father Louis Arceneaux, C.M National Voice of the Poor Spiritual Advisor Jack Murphy, Southeast Voice of the Poor Representative National VOP Chair

Voice of the Poor Prayer Lord of all people, During your time on earth you identified with the poor and instructed us to care for one another, for our neighbor and especially for the least of our brothers and sisters. Be with us as we advocate for the poor. Help us to persevere in joy and love on their behalf. Add your voice to ours as we speak out for those who are not heard in our communities. Guide us as we work, comfortable in the knowledge that we are doing your will for this day and time and place, and that you will take care of tomorrow. We ask this in the name of Jesus, his Blessed Mother, our patron St. Vincent and our founder Blessed Frederic. Amen Ruth Zemek, Phoenix Council

Workshop Objectives Learn the Signs of a Predatory Loan Review The Society’s Position Papers on the topics Beginning of a Action Plan for tackling these subjects

Agenda Discuss current situation in your area Review terms & facts Success stories Self Sufficient Wage Position Paper

Usury is a scourge that is also a reality in our time and that has a stranglehold on many people’s lives. Compendium of the Social Doctrine of the Church

What is a Predatory Loan Lending practices that strip wealth or income from borrowers. Typically are much more expensive than justified by the risk Have excessive or hidden fees Charges for unnecessary products High interest rates Terms designed to trap borrowers in debt Refinances that do not provide any net benefit to the borrower

Where can loans show up: Car Title Loans Payday Loan Refund anticipation loan Rent-to-own Credit Cards Overdraft Fees Sub Prime Mortgage

What are you seeing in your conferences?

Payday Loan Facts There are over 20,000 payday loan shops in the United States. A typical payday lender charges 400% APR on small loans. The typical payday borrower eventually pays back $793 for an initial $325 loan. The average payday loan borrower takes out 9 loans a year. Payday lenders make the bulk of their income from “churned” loans—three-fourths of all payday loan volume and $3.5 billion in fees per year. Center for Responsible Lending

Texas Catholic Conference Example $7M spent by industry to fight statewide legislation Catholic Conference "Pay Day Roadshows" to: organize coalitions collect stories promote city ordinances to regulate lenders build grassroots support to educate state legislators Dozens of towns and cities--including Houston, Dallas, San Antonio, El Paso, Austin

What can you do? Ask about high interest loans on each home visit-Make note of the details and ask if the person would even be willing to share the story Educate your parish-tell the stories and the facts. Identify collaborators-who else might be working on this in our communitiy? Speak out!- Write an op-ed article or letter to the editor. Share specific stories and your religious perspective. (Do not make reference to SVDP unless you have been asked to by your Council or District President.) Go public- Meet with or host a forum with your state legislator asking for his or her commitment to supporting payday lending reform.

In many cases, poverty results from a violation of the dignity of human work, either because work opportunities are limited (through unemployment or underemployment), or “because a low value is put on work and the rights that flow from it, especially the right to a just wage and to the personal security of the worker and his or her family.” (Caritas in Veritate, Charity in Truth—Pope Benedict XVI, 2009), #63

Self Sufficient Wage A self-sufficient wage provides the income necessary to meet basic needs without public subsidies (e.g., public housing, food stamps, Medicaid or child care) and without private assistance (e.g., free babysitting by a relative or friend, food provided by churches or local food banks, or shared housing)

Steps for determining a Self-Sufficient Wage 1.Investigate the cost of public benefits in our state or geography. How much money does a family of three, for example, need to be independent of SNAP, Medicaid, TANF, etc. Are we paying more than that? 2.Examine the local wage calculator ( Does that calculation provide a reasonable snapshot of the cost of living in our geography? Do we need to validate any of the components? Does that wage allow people to live without long term public/private assistance? 3.Compare the self-sufficient wage with our current pay scale. If we are below that pay scale how long would it take us to raise pay to a self-sufficient level?

Living Expenses in Fulton County, GA Monthly Expenses1 Adult 1 Adult, 1 Child 1 Adult, 2 Children 1 Adult, 3 Children 2 Adults 2 Adults, 1 Child 2 Adults, 2 Children 2 Adults, 3 Children Food$242$357$536$749$444$553$713$904 Child Care$0$417$633$850$0 Medical$128$398$415$395$272$394$370$379 Housing$757$912 $1,110$820$912 $1,110 Transportation$318$618$712$764$618$712$764$777 Other$82$172$215$272$137$172$194$219 Required monthly income after taxes $1,527$2,874$3,423$4,140$2,291$2,743$2,953$3,389 Required annual income after taxes $18,324$34,488$41,076$49,680$27,492$32,916$35,436$40,668 Annual taxes$2,683$5,039$6,002$7,251$4,019$4,812$5,176$5,946 Required annual income before taxes $21,007$39,527$47,078$56,931$31,511$37,728$40,612$46,614

“I believe that the laity serve the faith better because they confront all the different issues of life with knowledge and deal with these issues in a Christian way. They do not deal with these issues in generalities or in an apologetic manner like the theologians who do so little to change the present situation.” (Biography of Frederic Ozanam by: Sister M. Teresa Candelas, D.C.) "Let the lay not imagine that (their) pastors are always such experts, that to every problem that arises...they can readily give a concrete solution, or even that such is their mission." ( Gaudium et Spes, Pastoral Constitution on the Church in the Modern World, 1965 #43) “A new state of affairs today both in the Church and in social, economic, political and cultural life, calls with a particular urgency for the action of the lay faithful. If lack of commitment is always unacceptable, the present time renders it even more so. It is not permissible for anyone to remain idle.” (Christifideles Laici, #3 St John Paul, II, On the Vocation and Mission of the Lay Faithful )

What will you do with this information?

20 "How can it be that even today there are still people dying of hunger? Condemned to illiteracy? Lacking the most basic medical care? Without a roof over their heads?... Christians must learn to make their act of faith in Christ by discerning His voice in the cry for help that rises from this world of poverty." Pope John Paul II, Novo MIllennio Ineunte, 2001

Voice of the Poor Regional Reps Northeast Region Tom Dwyer Mideast Region Warren Wright East Region Lynne Betts Lois Jackson North Central Region Mary Ann Reinhardt Midwest Region Joseph J. Komadina South Central Region Frank Kiolbassa National Chair & Southeast Region Jack Murphy West Region Giulio Grecchi Michael Stratton, michaelstrattonsvdp. Spiritual Advisor Rev. Louis Arceneaux, C.M.

1. A Just Wage for Employees of the Society of St. Vincent de Paul, April Affordable Housing for the Poor, February Health Care for the Poor, Feb Immigration, Sept Fair Wages, Sept Restorative Justice, Sept Predatory Lending, April Homelessness, Aug Hunger, Sept Education, Apr Human Trafficking, Sept Current Position Papers of The Society of St. Vincent de Paul

Income & Predatory Loan Resources Center for Responsible Lending ( Living Wage Calculator ( Self Sufficient Wage Calculator ( USCCB Labor & Employment ( life-and-dignity/labor-employment/index.cfm) life-and-dignity/labor-employment/index.cfm Voice of the Poor: ols/VoiceofthePoor.aspx ols/VoiceofthePoor.aspx 23

Prayer for Systemic Change We praise and thank you, O God, Creator of the Universe. You have made all things good and have given us the earth to cultivate. Grant that we may always use created things gratefully, and share them generously with those in need. Give us creativity in helping the poor meet their basic human needs. Open our minds and hearts so that we might stand at their side and assist them to change whatever unjust structures keep them poor. Enable us to be brothers and sisters to them, friends who walk with them in their struggle for fundamental human rights. We ask this through Christ our Lord. (from the Letter of Superior General on theme of annual Vincentian Day of Prayer 2008 )