Kansas City: Payday Lending and Predatory Lending

The video discusses the ongoing racial and economic challenges in Kansas City, focusing on the impact of payday lending. It highlights the misuse of community resources and the historical context of banking deregulation. The video also covers legislative efforts to reform payday lending laws and the community's initiative to cap interest rates, emphasizing the need for collective action to address predatory lending practices.

What misconception about racism is highlighted in the Kansas City context?

• Racism was completely resolved in the 1960s.

• Racism is a recent phenomenon.

• Racism is only a problem in rural areas.

• Racism is only an issue in the southern United States.

What is the main issue with payday loans in Kansas City?

• They offer low-interest rates to borrowers.

• They contribute significantly to the local economy.

• They are regulated by strict usury laws.

• They result in high-interest debt that burdens residents.

How did payday lending emerge as a problem in low-income communities?

• Through increased investment from traditional banks.

• Due to banking deregulation and capital flight.

• By offering competitive interest rates.

• By providing free financial education.

What strategy did the community use to address payday lending issues?

• Organizing a ballot initiative to cap interest rates.

• Protesting against traditional banks.

• Lobbying for increased payday loan limits.

• Encouraging more payday lenders to open.

What was the proposed interest rate cap in the Cap the Rate Initiative?

• 100% APR

• 1950% APR

• 36% APR

• 28% APR

Which groups were brought together to support the Cap the Rate Initiative?

• Only financial institutions

• Only political parties

• Faith groups, labor groups, and community organizations

• Only local businesses

What is the main reason payday lenders target certain communities?

• They have access to conventional banking.

• They have strict financial regulations.

• They are predominantly wealthy areas.

• They lack access to traditional banking services.