Predatory Lending

Immigration Reform Might Mean Loan Sharks For Some Families

“If you have a family of four or five, it’s going to add up to thousands of dollars, and I just can’t imagine anyone having that amount of money stored in a shoebox — so someone will come up with a lending scheme that will be close to usury,” said Robert Moser, deputy director of Catholic Charities for the Diocese of San Diego.

That quote, from this MSNBC news article about immigration reform measures now pending before Congress which would require $5000 fines, plus thousands more in fees and back taxes, in exchange for an opportunity to achieve legal status - a process that could take as long as eight years, according to the article.

Regardless of your stand on illegal immigration, it’s an inescapable fact that their labor in positions deemed undesirable by many Americans is a significant cog in the American economical machine. Should they be required to turn to usurious lenders to come up with astronomical sums to keep doing those jobs, the impact could be felt by us all. On the other hand, a substantial sum could be an effective winnowing tool - dividing those who are truly committed to becoming law abiding American citizens from those who aren’t, and should be deported.

Would employers step in to relieve the pressure? I find that doubtful. I don’t think for inexpensive labor any small employer (or big one, for that matter) would be motivated enough to enter into such an agreement with a worker.

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