KANSAS CITY, MO -
"Predatory Lending" are dirty words to many people who get stuck in a loan they just can't pay off, and officials with the Federal Reserve say they want to do something about it as they toured areas of the metro hard-hit by foreclosures and payday loans.
"It's not because we're stupid," said Rickie Coleman of Wichita, who was among the group of people who met with federal officials. "We're not stupid people."
Coleman and others say that they've fallen prey to bad lenders, and want to make sure that it doesn't happen to others. On Saturday, they toured payday loan shops, which they say are the economic villains.
Mitzi Singleton says that she was so in debt to payday loans that it nearly destroyed her dreams of owning a home.
"The hype they get you into, no credit checks. It's fast, it's easy," said Singleton. "It is easy, but anything that is easy is like it drags you down, like a noose around your neck."
Clifton Jones of Mexico, Missouri, said that he got trapped into a vicious circle of payday loans after he lost his job. He said a single loan of $100 snowballed into a lot more.
"It was harder knowing I couldn't work anymore," said Jones. "So then you're forced to rob Peter to pay Paul. You go see another payday loan place just to pay this one to get him off your back. Then there you are, in the cycle."
City, county and state officials joined the Federal Reserve officials, who said that they are taking what they learned back to Washington, D.C., to try and come up with a way to restore trust in lending.
"It's not because we're stupid," said Rickie Coleman of Wichita, who was among the group of people who met with federal officials. "We're not stupid people."
Coleman and others say that they've fallen prey to bad lenders, and want to make sure that it doesn't happen to others. On Saturday, they toured payday loan shops, which they say are the economic villains.
Mitzi Singleton says that she was so in debt to payday loans that it nearly destroyed her dreams of owning a home.
"The hype they get you into, no credit checks. It's fast, it's easy," said Singleton. "It is easy, but anything that is easy is like it drags you down, like a noose around your neck."
Clifton Jones of Mexico, Missouri, said that he got trapped into a vicious circle of payday loans after he lost his job. He said a single loan of $100 snowballed into a lot more.
"It was harder knowing I couldn't work anymore," said Jones. "So then you're forced to rob Peter to pay Paul. You go see another payday loan place just to pay this one to get him off your back. Then there you are, in the cycle."
City, county and state officials joined the Federal Reserve officials, who said that they are taking what they learned back to Washington, D.C., to try and come up with a way to restore trust in lending.
