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Credit union hopes to bust power of predatory lenders

Posted: 4:50 PM, Apr 18, 2018
Updated: 2018-04-18 23:32:15Z

KANSAS CITY, Mo. – A new credit union in the heart of Kansas City has a mission to pool economic power in a battle against predatory lenders.

The WeDevelopment Federal Credit Union plans to open near 31st Street and Prospect Avenue this summer.

WeDevelopment Board Chairman Ajuma Webster says they plan to focus on second chance checking accounts, helping people build credit and personal loans to help people stay away from payday loans and predatory lenders.

"We want to give people an option. A way to build their economic stability without using payday loans," said Webster.

The lending institution will move into an area that is now a vacant store front across from the Linwood Shopping Center.

"This community is coming back, and it'll draw traffic and attention here," said Webster. "When people come to the grocery store, they'll see they can get not only get groceries, but affordable financial services as well."

The Missouri Division of Finance regulates payday lenders. In 2017, the average payday annualized interest rate was more than 460 percent.