Payday lending is concentrated in communities of color across the Midwest. A new report reveals that Chicago is one of those cities hit hard by “credit segregation.”

Payday lending is a short-term loan until the borrower’s next paycheck. The problem is that interest rates are typically through the roof compared to traditional bank loans, and the customers tend to be the working poor. A non-profit called National People’s Action looked at where payday lenders are located.

Its report found Chicago’s black and Latino neighborhoods have almost three times the concentration of payday lenders compared with white neighborhoods.

“The Midwest is kind of a hot spot for payday lending. About 25 percent of the total industry is located here,” said report author Nick Bianchi.

National People’s Action looked at lending in Illinois, Michigan and Missouri. The group recommends that Congress cap interest rates for small-dollar loans.