KC takes "wrong lead" in payday lending

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The Kansas City Star, in a Sunday editorial, wrote an extensive piece on Kansas City's direct involvement in the growth of online payday lending. 

The editorial states: "This region has embraced the noxious online payday loan industry in a big way." It then lists the direct financial and political involvement by several Kansas City area individuals in online payday lending.

The editorial concludes: 

"The industry relies on exorbitant fees and repeat customers. A person who takes out the first loan will be besieged with offers of more quick cash. Online lenders often make larger loans and charge higher fees than storefront operators, who at least are bound by state regulations.

"Right now short-term lending is governed by a hodgepodge of state laws, with online operators coming up with ingenious ways to evade them. The industry needs uniform regulations and enforcement at the federal level.

"Unfortunately, some of the worst practices have roots in the Kansas City area. The concentration of online lending operations here is not a point of regional pride, but it does point to a wealth of financial, technical and legal expertise and creativity."