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KANSAS CITY, Mo. – Payday lenders in Missouri can charge between 300% and 1900% interest on payday loans. On Tuesday, a Kansas City-area nonprofit shared three specific changes they’d like to see put in place immediately to help end the cycle.
“CCO, Communities Creating Opportunity calls on local elected officials to do everything in their power to curb predatory lending,” said Susan McCann of CCO.
The group wants local authorities to limit the number of payday lending institutions in vulnerable neighborhoods, support alternative lending programs that offer fair interest rates (36% or less), and do more to promote educating people. borrowers. Research shows that the consequences of not taking action on the issue can be dire.
“As income inequality increases, we die sooner. In this country, we don’t go online that often, ”said Rex Archer, health director of KCMO’s health department.
In Kansas City, there is a difference of about 14 years between zip codes with the lowest life expectancy and those with the highest life expectancy. Financial insecurity is a contributing factor.
“Income inequality, individual poverty, local poverty are critical issues for the health and safety of our citizens. When we start looking at these economic indicators, between one in three and one in two deaths per year in the city is due to these injustices, ”said Archer.
In the old days, CCO organizers say there are more payday loan storefronts in Missouri than the number of McDonald’s restaurants and Starbucks coffee shops combined.
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