Students are invited to participate in a mock hearing at Advocacy Day in Austin on March 28, 2023. Links to resources on the payday lending are also provided. Feel free to develop your own lesson plans based on the age groups of your students.
Love for others, and in the first place love for the poor, in whom the Church sees Christ himself, is made concrete in the promotion of justice. (St. John Paul II, On the Hundredth Year [Centesimus Annus], no. 58)
- Review key vocabulary: ordinance, loans (how they work), annual percentage rate, payday lending, life and dignity of the human person, poor and vulnerable, the common good and social justice
- Review Catholic Reflection Guide for The Ordinance to understand Catholic Social Justice teachings in connection with payday lending.
- Review TCCB Statement of Principles for Fair Lending Practices
- Documentary of “The Ordinance”: https://www.youtube.com/watch?v=xhvdQSenu9Y&feature=youtu.be.
- The Ordinance is a powerful story of how churches and nonprofits are partnering to influence their local governments for the common good. In a time when political disillusionment is growing, this story serves as an important example of how the best, and worst, of our political system can unite a community
- How the Catholic Church is fighting loan sharks in Texas: Catholic News Agency article detailing how the Church is addressing payday lending in Texas
- Review the following key points with students regarding the legislative hearings:
- Members of the state legislature make laws.
- These laws should protect our rights and promote our welfare.
- To address our state’s problems and pass good law, members of the legislature need to gather information.
- One way that members of the legislature get the information they need is by holding legislative hearings.
- At these hearings, they ask experts to answer questions about important issues related to proposed laws.
- Texas House of Representatives FAQ
- Texas Senate FAQ
6. Prepare students representing the pros and cons in the use of payday lending. Students may bring prepared testimony and/or notes. More information regarding the selection of students will be coming at a later date.
Goal: Personal financial literacy- credit and debt. The student understands the costs and benefits of borrowing.
Objectives: The student is expected to:
- Compare and contrast sources of credit such as banks, merchants, peer-to-peer, payday loans and title loans; and
- Identify the characteristics and dangers of predatory lending practices
(adapted from TAC Title 19, Part 2, Chapter 113 Subchapter C (d) Knowledge and skills (7))
How Much Are You Really Paying for that Loan?
Students learn what a payday loan is and the high cost involved in using such a loan. Working in groups, students calculate an annual percentage rate (APR) on a short-term loan.
Click on the link above and scroll down to Lesson 8: How Much Are You Really Paying for that Loan? Then click on Lesson 8 (PDF) and Powerpoint (PPTX).
More information regarding the mock hearing will be available after confirmation of which schools will be attending Advocacy Day 2023.
- The legislative committee and witnesses will be chosen from student volunteers.
- The committee members go to the stage and take their seats. There will be one chairperson of the committee, who will call on the witnesses and committee members to ask questions.
- The committee chairperson reads aloud the caption of the bill and invites up the first witness.
- Each witness called has four minutes to present their testimony.
- The committee may ask follow-up questions. The witness will have 4 minutes to respond. Not all speakers will be asked questions. The committee clerk will monitor time and let the committee chairperson know if they need to limit questions or testimony.
- The committee then has time to discuss the testimony that they heard and debate their positions for 3-5 minutes.
- The committee then votes on the bill to pass or not pass the ordinance.
- What is a Payday Loan? The Consumer Financial Protection Bureau (CFPB) discusses the characteristics of payday loans.
- Sample Texas Fee Schedule and Office of Consumer Credit Commissioner (OCCC) Notice This document shows a sample disclosure that the consumer would receive when getting a payday loan in Texas, with amounts financed and total amount they have to pay with finance charges, fees, and the APR.
- TCCB Research This link shows research and studies compiled by the Texas Catholic Conference of Bishops on payday lending, as well as Church teaching on the area, and how to advocate for reform.
- Student Essay: My Summer Working for a Payday Lender by Diana Drake
- Pros and Cons of Payday Loans -- Payday loans are often advertised to borrowers looking for quick and easy access to cash without barriers like a hard credit inquiry. But they also have a reputation for high interest rates and short repayment periods that can keep borrowers in a cycle of debt. Before you jump into a loan, it’s important to weigh the pros and cons of payday loans and uncover the hidden costs.