As the Georgia state general assembly prepare to consider once again payday lending, there are some serious ethical and moral questions raised within the context of the industry at large and our state elected officials. In 2004, the same Georgia State legislature sent a clear and concise message to this most predatory industry that in short they were not welcomed in Georgia. These cash advance businesses with interest rates beyond belief make themselves comfortable in poor and minority communities of the citizens they victimize. Continuously, there are stories of consumers who have been harassed and taken advantage of by roll-overs and interest rates that are beyond thought. They result in what really becomes a systemic creation of never ending loans.

The fact of the matter remains that such establishments prey upon communities that primarily consist of African Americans, other minorities and poor people. It does not take a rocket scientist to see and understand that they are nothing more than modern day loan sharks. The moral issue is that they thrive by taking advantage of societies most vulnerable and disadvantaged citizens. Ironically, a 2003 report compiled by Stephens Inc, for the payday loan industry, indicated that the typical payday loan customer is a “single mother with at least one child who rents her home.” The same report went on to conclude that these consumers are financially distressed and typically live from pay day to payday. It is very clear to me that these establishments provide no service, but are legalized theft schemes that cripple rather than help.

Here we are three years later and the industry is at it again with its same victimizing ways through House Bill 163, sponsored by Republican Steve Tumlin from Marietta. As the nation focuses on the Georgia State Legislature’s actions or lack thereof, the payday lending industry cannot be allowed to survive. Nationally, late last year, Congress passed a bill capping loans made to military personnel at 36 percent, a measure that went after the industry and other high interest lenders! I would hope that the members of the general assembly who are elected to protect our best interest would see beyond the industry’s smokescreen and vote accordingly. It is in my opinion, therefore incumbent upon every citizen and consumer in the state of Georgia to implore their representatives to vote against such legislation. It is at the base of the Statue of Liberty, we listen to her speaking to the nation, “Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest-tossed, to me: I lift my lamp beside the golden door.” This is the message that I think needs to be conveyed to the members of the Georgia General Assembly and the pay-day loan industry.

The Reverend D. D. Prather, is a noted Civil/Social Justice Activist, and a native of
Atlanta, GA . Rev. Prather's email address is: [email protected].