Chicago WBEZ: Payday lenders concentrated in minority communities

Payday lending is concentrated in communities of color across the Midwest. A new report reveals that Chicago is one of those cities hit hard by “credit segregation.”

Payday lending is a short-term loan until the borrower’s next paycheck. The problem is that interest rates are typically through the roof compared to traditional bank loans, and the customers tend to be the working poor. A non-profit called National People’s Action looked at where payday lenders are located.

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