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Kansas City, MO

Aug 1, 2009 - In response to the rising epidemic of predatory lending in Kansas and Missouri, Sunflower Community Action (SCA) and Grass Roots Organizing (GRO), and Communities Creating Opportunity (CCO), convened the fourth of nine community meetings with the Federal Reserve taking place this summer. More than 200 community residents attended, calling on the Federal Reserve and other public officials to protect homeowners against an exploitative payday lenders and to beef up lending laws that govern banks.

Community leaders gave testimony on how the foreclosure crisis has affected them directly and took members of the Federal Reserve and other public officials on a neighborhood tour to expose them to the damage foreclosures have had on the community. A rountable discussion followed where community leaders and residents demanded action and commitments from the Federal Reserve and public officials to start doing their jobs and protect Americans from further detriment.

Commitments Won

Missouri Fed Mtg The Attorneys General of Kansas and Missouri, half of city council members of Kansas City, a county commissioner and officials from the Federal Reserve Bank of Kansas City all made commitments to our organizations to address the scourge of foreclosures, blight and predatory lending in Kansas and Missouri.

Commitments include:

Six members of the KC city council agreed to raise more money for CCO’s home repair program and to introduce legislation that will impose stiffer penalties on banks that leave foreclosed properties in disrepair.
County Commissioner Theresa Garza agreed to introduce County legislation that would require lender licensing and fine banks like the city ordinance does.
A representative of Kansas Attorney General Steve Six agreed to support a 36% interest rate cap on payday loans, and to investigate Wells Fargo’s discriminatory lending practices in Kansas.
Assistant Missouri Attorney General Debra Lumpkins agreed to arrange a meeting with the Missouri Attorney General to discuss how he can step up his leadership in fighting payday loans.
Representatives of the Federal Reserve Board agreed to bring our demands to Chairman Ben Bernanke for modernizing the Community Reinvestment Act so that we can rebuild our communities and prevent this kind of crisis in the future.

News Coverage

Community groups ask for more responsible loans, mortgages (Kansas City Star, Aug 1)

Fed Officials take 'predatory lending' fact finding tour of metro (Fox local, Aug 1)

People demand action on predatory lending crisis (The Catholic Key)

KMBC-TV video: http://www.kmbc.com/video/20266756/

Kansas City Data

Kansas City PowerPoint presentation - includes information on the distribution of bad credit options in low-income, minority communities and data that shows how bad lending practices caused the current foreclosure crisis.

Fed members at the Meeting included:

Anna Alvarez Boyd, Associate Director of Analysis and Communications from Federal Reserve Bank
John Moon, Senior Community Affairs Analyst of the Board of Governors

Tammy Winslow, Kansas City Fed office
Paul Wenske, Community Liason for the Kansas City Fed office

Public officals at the Meeting included:

Kansas City Attorney General representative
Congressman Dennis Moore (KC) representative
FDIC representatives (local and national)
Better Business Bureau, KS

Community meetings with the Federal Reserve are being coordinated in partnership between National People’s Action and the PICO National Network. National People’s Action is a proud member of the national coalition Americans for Financial Reform for real reform in our banking and financial system for all Americans.