CCO grassroots leaders work to improve the financial condition of low-income residents trapped in spiraling debt. CCO partners with the Federal Deposit Insurance Corporation (FDIC), area banks, and other Kansas City social service agencies to create mediation avenues for those mired by debt from payday loans.At the same time CCO is leading the campaign with the Center for Responsible Lending toregulate payday loan interest rates, and put forth a substitute small-dollar loan program to infuse needed resources into neighborhoods and provide a healthy alternative to the average 431% interest rate charged by payday loans.
In 2001 CCO worked with Missouri state legislatures to cap interest rates on payday loans at 171% and strengthen consumer protections for payday loan borrowers. Sadly, this regulation is poorly enforced and today CCO members are moving forward enhanced methods for regulation and fair lending practices.
