Messengers Approve Resolution Urging Cap on Payday Loans
11/15/2011
FLORENCE – A resolution encouraging state and local governments to put an interest-rate cap on short-term, so called "payday," loans was passed today at the 174th annual meeting of the Kentucky Baptist Convention.
Messengers also approved resolutions of appreciation for W.F. "Bud" Underwood, retiring president of Oneida Baptist Institute, and for this year’s host congregation, Florence Baptist Church at Mt. Zion.
Tim Harris, pastor of Woodburn Baptist Church, submitted the committee on resolutions’ report during the morning session.
The short-term loans issued with extremely high interest rates are "designed to entrap households in debt," the resolution stated. The combination of high fees and short repayment periods can push the interest rate as high as 391 percent according to the Kentucky Department of Financial Institutions.
The Christian faith "has historically opposed and deemed usurious loans at exorbitant rates of interest, especially to those who are poor," the resolution continued. Several Scripture passages were referenced, including Exodus 22:25-28, Leviticus 25:35-37, and Deuteronomy 23:19.
Through the resolution, Kentucky Baptists are encouraging state and local governments to establish a cap of 36 percent annually for all small loans. The resolution also asks for "any other protections necessary to protect individuals from lending abuse."
The 36 percent rate was lifted from the 2006 Talent-Nelson Amendment to the Military Lending Act which was signed into law by former President George W. Bush.
Seventeen states and the District of Columbia currently prohibit the issuance of triple-digit interest rate payday loans.
Nov. 15 marked the final KBC Annual Meeting that Bud Underwood attended as president of Oneida Baptist Institute, a Clay County boarding- and day school founded in 1899 and supported by generations of Kentucky Baptists.
Underwood will retire March 31, 2012 after 28 years of service, 18 as OBI president.
With an enrollment of more than 300 students, Oneida serves middle- and high schoolers from Kentucky, elsewhere in North America and the world.
The resolution commended Underwood for facility improvements and "a remarkable reduction in the turnover rate of students, faculty and staff" during his tenure.
Also of note was the improved financial footing of the school under his watch, increasing OBI’s endowment from $1.5 million to $28 million.
Underwood also is credited for creating a welcoming atmosphere for students not from Christian backgrounds, while maintaining OBI’s identity as a Christian school.
The resolution stated that "Oneida is a ministry that welcomes students regardless of income … (and) their knowledge or faith in Jesus Christ at the time they arrive."
Through another resolution, messengers thanked Tim Alexander, pastor of Florence Baptist Church at Mt. Zion, the church staff and members, and churches of the Northern Kentucky Baptist Association for hosting this year’s annual meeting.
The Kentucky Baptist Convention is a cooperative missions and ministry organization made up of nearly 2.400 autonomous Baptist churches in Kentucky. A variety of state and worldwide ministries are coordinated through its administrative offices in Louisville, including: missions work, disaster relief, ministry training and support, church development, evangelism and more. For more, find us on Facebook or follow us on Twitter.
by Dannah Prather, KBC Communications
