Faith-Based Groups Earn Millions on Refugee Loan Commissions
(RNS) Faith-based agencies that resettle refugees in America stand to gain more than a clear conscience if the United States — after what is expected to be a fierce debate in Congress — accepts a proposed 10,000 Syrian refugees next year.
More refugees also means more revenue for the agencies’ little-known debt collection operations, which bring in upwards of $5 million a year in commissions as resettled refugees repay loans for their travel costs. All nine resettlement agencies charge the same going rate as private-sector debt collectors: 25 percent of all they recoup for the government.
This debt collection practice is coming under increased scrutiny as agencies occupy a growing stage in the public square, where they argue America has a moral obligation to resettle thousands of at-risk Syrian refugees. Some observers say the call to moral action rings hollow when these agencies stand to benefit financially.
“It’s money-producing, and I do find that troubling,” said Ronald Simkins, director of the Center for the Study of Religion and Society at Creighton University. “It adds a perception of conflict of interest. Certainly for their advocacy it can become that. … It becomes in some sense self-serving in the end.”
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