For years, the payday lending industry has financially exploited economically vulnerable populations. Low-income families, the elderly, minorities, and military personnel have all been targets for these abusive lenders. Ironically, the industry claims they are providing a much-needed service to these populations—quick and convenient short-term credit. However, this convenience can cost citizens more than 400 percent annual interest on each loan. The business model of payday lending is designed to cultivate repeat borrowers, forcing already income-strapped people into a cycle of debt. Over 90 percent of payday loans are made to people who take out five or more loans per year.
These predatory practices are very similar to the practices of the moneychangers found in all four Gospels (see also Matthew 21:12-13, Mark 11:15-17, and Luke 19:45-48). Upon encountering the moneychangers, Jesus was angered to the point where he physically chased them out of the temple, accusing them of turning the temple into a “den of thieves.” Judging from Jesus’ response, abusive financial practices were something he would not condone then and would surely condemn now.
And Jesus went into the temple of God, and cast out all them that sold and bought in the temple, and overthrew the tables of the moneychangers, and the seats of them that sold doves, And said unto them, It is written, My house shall be called the house of prayer; but ye have made it a den of thieves (Matthew 21:12-13).
Sellers of Doves and Animals
Payday lenders tout their business as one that provides a necessary “service” to the community. They claim that they are filling a need for short-term credit that conventional banks are not providing. Payday lending, therefore, targets a niche that is most likely to need short-term credit to make ends meet, or to pay for financial emergencies. There is a perceived convenience in that there are no credit checks and that payday shops are located in close proximity to targeted neighborhoods. However, the high interest rates and unavailability of installment payments keep borrowers from ever paying off the principal—leaving already vulnerable borrowers paying more for their loan than they originally intended and probably more than they can afford.
Biblically, we see a similar abuse with the sellers of doves mentioned in the Gospels of Matthew and Mark. During the time this event is mentioned, Jesus had just entered into the city of
Jerusalem
to celebrate Passover, among other things. During the annual Passover season, Jews from all across the Roman Empire would converge at
Jerusalem
and participate in various rituals and feasts. These rituals included animal sacrifice in the temple to atone for sin and uncleanliness.
People traveled hundreds of miles by ship and by foot to
Jerusalem
, sometimes from as far as
Greece
and
Italy
, and it became extremely cumbersome and inconvenient to transport large livestock along their journey. There was also the stipulation that sacrificial animals must be “without spot or blemish” (Numbers 19:2) in order to be considered worthy for sacrifice, meaning the animal could not have any defects, disease, or injury. Lengthy traveling increased the likelihood that the animals would succumb to injury. This created a new market for people needing animals for the Passover celebration.
Jerusalem
merchants would set up booths in the temple courts to sell the various animals, allowing people the convenience of leaving their own livestock at home.
Unfortunately, these same merchants exploited their visitors by selling their merchandise at inflated prices, pocketing the extra profit for themselves. The prices were usually even higher immediately before feast periods. Jews needing these animals for Passover were faced with the choice of either paying for overpriced goods, or not fully participating in important activities they had already traveled so far to enjoy. Knowing this, Jesus chased these men out of the temple, making a definitive statement that such exploitation was not to be tolerated.
Borrowers of payday loans are often faced with the same decision as the ancient Jews: either pay for the convenience of an overpriced good, or not have an important need met. As Jesus deemed this type of exploitation to be unacceptable during His time, we should stand up against such practices today.
The Moneychangers
The ancient moneychangers provided a different service than the animal merchants, but were similarly predatory. According to the Old Testament (Exodus 30:13-15), Jewish law required that every adult of at least twenty years of age, regardless of economic status, pay an annual tax of a half-shekel. These funds were used for the general support of the temple and religious functions. However, shekels were currency commonly found only in the
Jerusalem
area, and the yearly tax could only be paid in the shekel currency. This meant Jews coming from foreign lands, with their foreign currency, would have to exchange their money for money native to
Jerusalem
. Shekels were also needed for temple offerings and for the purchase of sacrificial animals.
Old Testament law did not actually prohibit the practices of animal sales or moneychanging from taking place, especially considering those traveling long distances to the temple. One may contend that it was not the presence of the merchants and moneychangers that upset Jesus, but rather knowing that their presence would take advantage of people that deserved better. Moneychangers exchanging foreign currency for shekels had the advantage of knowing the exchange rates of the different currencies. Foreigners ignorant of how much their Greek or Roman coins were worth in shekels were easily shortchanged from what was actually owed to them. The moneychangers would capitalize on travelers from already impoverished and poorly educated backgrounds.
Payday lenders similarly capitalize on people who have few resources and who may be desperate. When faced with a lack of alternatives for fast and convenient short-term credit, some borrowers are led to believe that loans at 400 percent interest are the only avenues for their financial solutions. Instead of finding constructive assistance, many get trapped in a cycle of debt payments that results in easy profit for the lender, while leaving the borrower in the same financial difficulties. Lenders truly interested in providing a helpful “service” should not want to burden the same people they are supposed to serve.
A Moral Dilemma
One could imagine Jesus’ encounter with the merchants to be filled with frustration. He saw how some were willing to use God’s people for financial gain, and to disrespect the holiness of the temple in the process. Some believe that the temple priests were also receiving a share of the merchants’ profits, since they would have to permit them access to conduct business on temple grounds. Witnessing this corruption is the only occasion in the Bible where Jesus expresses anger in such a dramatic and physical way.
From a moral standpoint, payday lenders are not much better than the ancient merchants and moneychangers. Payday shops disproportionately set up their businesses in high-traffic target areas, just as the moneychangers established themselves in the temple courts. Even when media scrutiny and state legislation cast a spotlight on their industry, they vigorously search for legal loopholes that would permit them to continue their scams.
Others will boldly defend their right to lend on grounds that they are simply meeting a demand, regardless of how many families are hurt in the long run. They also have access to expensive and powerful lobbyists who will try to influence government into permitting their industry to do business in particular states. These attempts at influencing lawmakers are similar to the influence merchants may have had with the high priests.
Call to Action
Payday lending is not only a financially irresponsible practice, it is a morally irresponsible one as well. It takes advantage of unsuspecting and vulnerable individuals who may believe they have no other financial alternatives. As Jesus instructs us to “love our neighbor” (Mark 12:31), we should strive to protect the welfare of our neighbors—just as Jesus did in the temple. Today, many states are debating the future of payday lending in their area. There must be a voice of moral clarity to stand against the influences of greed and predatory lending. With your help, many people can be spared the burden of living in a predatory debt cycle.
Excerpted and adapted from “Modern Day Mondeychangers” by Delvin M. Davis, Center For Responsible Lending
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