Addressing members to divest from the firm that used N.J. pension funds to acquire a lending company

Contact: Brianna Smallwood, First Baptist Church of Lincoln Gardens, 732-828-2009, 732-991-9247 Cell, bsmallwood@fbcsomerset.com

SOMERSET, N.J., May 8, 2015 /Christian Newswire/ -- The State of New Jersey Department of the Treasury Investment Council used $50 million in New Jersey pension fund dollars to purchase a lending company that is tied to illegal debt collection tactics. This investment is comparable to directly supporting payday lenders and it is inconsistent with the state law that prohibits predatory lending practices in New Jersey. On April 8, 2013, Department of Banking and Insurance Commissioner Ken Kobylowski, speaking on behalf of the Christie Administration, stated, "Payday loan fees, which are a form of interest payment, increase exponentially and soon dwarf the principal, and the borrower has no hope of making the payments." Mr. Kobylowski appears to understand what members of the Treasury State Investment Council do not – that payday loans are a debt trap and the payday loan industry engages in behaviors that are both deceptive and abusive.

Rev. Dr. DeForest B. Soaries, Jr., the Senior Pastor of First Baptist Church of Lincoln Gardens (FBCLG) is challenging the members of this council to immediately divest from the private equity firm. "Payday loans are a debt trap and the payday loan industry engages in behaviors that are both deceptive and abusive," said Dr. Soaries. "I've spent much of my adult life fighting against this industry and I'm shocked, appalled and embarrassed that my home state would, either directly or indirectly, endorse them and their practices." The payday loan industry represents incongruities to economic empowerment.

The use of payday lenders, often called "modern day loan sharks," are a reprehensibly expensive form of credit that places borrowers in the quicksand of ongoing and unmanageable debt. The Center for Responsible Lending found that the typical two-week payday loan has an annual interest rate ranging from 391 to 521 percent, resulting in $3.5 billion in fees each year. This means that the average payday borrower remains in spiraling debt for 212 days of the year. These loans affect a disproportionate number of under-banked, non-banked and poor working citizens.

Dr. DeForest B. Soaries, Jr. is the creator and author of "dfree®: Breaking Free from Financial Slavery" (Zondervan) and "dfree® Lifestyle: 12 Steps to Financial Freedom" (UMI). The dfree® Global Foundation, Inc. provides training for organizations that help people achieve financial freedom and self-sufficiency. Dr. Soaries serves as the Senior Pastor of First Baptist Church of Lincoln Gardens in Somerset, New Jersey and is an independent director at the Federal Home Loan Bank of New York and Independence Realty Trust of Philadelphia. He is former Secretary of State of New Jersey and Chairman of the United States Election Assistance Commission. Dr. Soaries is a graduate of Fordham University (BA), Princeton Theological Seminary (MDiv) and United Theological Seminary (DMin).

About First Baptist Church of Lincoln Gardens (FBCLG)
Founded in 1937, First Baptist Church of Lincoln Gardens is a vibrant community-focused, multi-cultural and historical African-American church rooted in Baptist doctrine and is located in the Somerset section of Franklin Township, NJ. The church's motto is "Faith in Action." FBCLG bears witness to the gospel of Jesus Christ for spiritual, educational, economic and community transformation. For more information, visit www.fbcsomerset.com.