CHICAGO — Concerned that some parishioners were consistently getting too deep with debt to payday loan providers, Father Thomas Frayne of St. James Church created a remedy couple of years ago.
A revolving was created by him, $1,000 fund from where parishioners or other people into the church’s community could borrow as much as $200, interest-free, for as much as a couple of weeks. The only catch: The debtor will need to have a relationship with Father Frayne.
“If someone understands you, your accountability is significantly greater,” he explained.
Although the church can only just make five loans at a time, it offers to date made 75, and just one debtor has defaulted. This system is very well gotten that the Monsignor John F. Egan Campaign for Payday Loan Reform, a Chicago coalition aimed at supplying alternatives to lending that is payday recently honored the Southern Side church on with 1 of 2 Vision honors.