Romona Taylor Williams & Anne-Sophie Gintzburger - Examining the impact of economic exclusion on low wealth and communities of color in St.Louis, MO: a simulation of pay lending

7/22/2019 Romona Taylor Williams & Anne-Sophie Gintzburger - Examining the impact of economic exclusion on low wealth and communities of color in St.Louis, MO: a simulation of pay

1/15

THIQUES ET RELIGIONS

POUR UNE CONOMIE JUSTECIRID 2014 CONFERENCE

Fondation Singer-Polignac

Paris, France

January 23-24, 2014


2/15

EXAMININGTHEIMPACTOFECONOMICEXCLUSIONONLOW

WEALTHANDCOMMUNITIESOFCOLORINSTLOUIS, MO:ASIMULATIONOFPAYDAYLENDING

Romona Taylor-Williams, President-CEO

Metro St Louis Coalition for Inclusion

and Equity (M-SLICE)

&

Anne-Sophie Gintzburger, Founding

Director Grap.se &

Research Associate CMSS-University of

Western Australia (UWA)


3/15

AGENDA

Alternative Financial Services a.k.a. Payday lending

Bank redlining: a glimpse of economic injustice

Economic justice: existing instruments

The results: when institutions and systems fail to enforce

instruments of justice

example 1

example 2

example 3

example 4 example 5

Challenging economic injustice

Contact info


4/15

Alternative Financial Servicesa.k.a Payday lending

Characteristics of payday loans Less or equal to US$500

Targets low wealth, people of color & the elderly Simulation of APR in a typical payday loan

Brief Stats (Missouri (MO) Division of Finance, 2011Report on payday lending industry)

MO population < 6million, app. 2.43 million payday loans

Average loan size increase from $290 (2009) to 307 (2011)

Average APR grew from 431% to 444% (increased fees)

Shock MO state law allows up to 1980% APR

Interfaith efforts capping interest rate at 36% by religiouscommunity leaders (Protestants, Catholics, Jewish)

Efforts were quashed by powerful payday lending lobbyists

Anne-Sophie Gintzburger, April 2013


5/15

Bank redlining: a glimpse ofeconomic injustice

State of Bank Reinvestment in St. Louis , St. Louis Equal Housing and Community Reinvestment Alliance, August 2013


6/15

INSTRUMENTS OFJUSTICE Civil Rights Act of 1964

The Civil Rights Act of 1964 was the mostsweeping civil rights legislation sinceReconstruction

Fair Housing Act of 1968

Congress passed the act in an effort toimpose a comprehensive solution to theproblem of unlawful discrimination in

housing based on race, color, sex, nationalorigin, or religion.

Community Reinvestment Act (CRA) of 1977

Passed in 1977, CRA makes redlining, ordiscrimination against neighborhoods illegal


7/15

THE RESULTS: WHEN

INSTITUTIONS AND SYSTEMSFAIL TO ENFORCEINSTRUMENTS OF JUSTICE

Transgenerational asset & wealth stripping

Predatory lending practices including payday lending

Decreased property values & decreased equity

Gentrification & increased rents / property taxes Despair & loss of hope

Increased crime, violence & incarceration rates

Environmental injustice

Overall diminished quality of life


8/15

BEYOND THE ARCH:NORTH OF DELMAR



9/15

ILLUSTRATION 1:3rd WardCarter Carburator Superfund Site


10/15

ILLUSTRATION 2: 3rdWard

Romona Taylor-Williams, July 2012


11/15

ILLUSTRATION 3: 4thWard



12/15

ILLUSTRATION 4:1stWard



13/15

ILLUSTRATION 5:3rdWard



14/15

CHALLENGING ECONOMICINJUSTICE St Louis Regional Unbanked Taskforce

St. Louis Equal Housing and Community Reinvestment Alliance

National Community Reinvestment Coalition (NCRC)

US Department of Justice

US Department of Housing and Urban Development (HUD)

Consumer Financial Protection Bureau

Financial Institutions Regulatory Agencies

FDIC (Federal Deposit Insurance Corporation)

OCC (Office of the Comptroller of Currency)

FRBS (Federal Reserve Bank System)

SEC (Securities & Exchange Commission)


15/15

Romona Taylor-Williams, CEO & President

Metro St. Louis Coalition for Inclusion and Equity (M-SLICE)

[email protected]

www.mslice.org

Anne-Sophie Gintzburger, Founding Director Grap.se &

Research Associate CMSS-University of Western Australia (UWA)

[email protected]

https://grap.se

Documents

Romona Taylor Williams & Anne-Sophie Gintzburger - Examining the impact of economic exclusion on low wealth and communities of color in St.Louis, MO: a simulation of pay lending