Conclusion

Billions of dollars in potential wealth have been stripped out of Chicago’s Black and Latino/a communities since the 1980s. The exorbitant interest and fees charged by payday, installment, auto title, pawn, and other short-term, small-dollar loans has accelerated the drain of potential assets from these communities. When taken as a whole with generational losses due to high-interest student loans, racist housing valuation practices, higher mortgage interest, and a multitude of other inequitable financial practices, the impact on financial health is astounding. The Predatory Loan Prevention Act of 2021 is a start. To truly protect Black and Latino/a wealth and build a prosperous community, the law must be protected, and further steps must be taken to address the underlying issues and provide new opportunities for communities. The future of the entire Chicago region will rise or fall depending on the outcome.