Uncategorized

Banned Payday Loans Aided by Banks

Published

13 years ago

March 22, 2013

Oakland Post

Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project.

Dedrick Muhammad, senior director of the NAACP Economic Department

By Tanya
Dennis

Internet payday loans that offer money due by the next pay day can cost up to $30 per $100 borrowed. The consumer, already on shaky financial ground, typically faces annual interest rates (APRs) of 650 percent. which is among the reasons why these loans have been controversial since their inception 20 years ago.
Although major banks like JP Morgan Chase, Bank of America and Wells Fargo do not make payday loans, they have become allies with the off-shore and internet-based payday lenders that do, allowing lenders to tap checking accounts even after customers have begged them to stop the withdrawals.
“Without the assistance of the banks in processing and sending electronic funds, these lenders simply couldn’t operate,” said Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project.
In response, Virginia O’Neill, senior counsel with the American Bankers Association said, “The industry is not in a position to monitor customer accounts to see where their payments are going.”
The Federal Deposit Insurance Corporation and Consumer Financial Protection Bureau are examining the banks’ role in online loans, a lucrative partnership for the banks because the withdrawals usually set off a cascade of overdraft fees.
In one case, Chase bank charged customer Ivy Brodsky $1,523 in fees, a combination of 44 insufficient fund fees, extended overdraft fees and service fees.
Roughly three million Americans obtained internet payday loans in 2010, and by 2016 internet loans will make up roughly 60 percent of the total payday loans, an increase of 35 percent.
According to John Hecht, an analyst with Stephens Inc, an investment bank, “The volume of online payday loans was $13 billion, up more that 120 percent from $5.8 billion in 2006
Facing increasing pressure from states, many lenders have set up shop offshore. At a 2012 industry conference payday lenders discussed the benefits of offshore lending often based in Belize, Malta, the Isle of Man and the West Indies.
State prosecutors are in constant battle to keep online lenders from illegally making loans to residents.
“The internet knows no borders, and there are layer upon layer of cyber-entities, and some are difficult to trace,” said Arkansas Attorney General Dustin McDaniel .
Dedrick Muhammad, senior director of the NAACP Economic Department, in an article entitled “The Truth About Payday Loans,” gave advice to borrowers who need money but want to avoid the sky-high rates offered by payday loans.
“In today’s economy there are no easy answers for low- to moderate-income Americans struggling to pay the bills, but what will clearly never work is adding another high-cost loan,” he said.
“When faced with a real emergency, don’t discount relying on your friends and family. Many borrowers go to payday lenders to avoid borrowing from family and friends, only to end up asking for assistance later to get out of the debt trap. You may also investigate viable loan options at mainstream banks and financial institutions by assessing their APR and fees.
“And as you continue to trim your day-to-day costs to fit your income, your goal should be to build up a savings cushion for emergencies – that’s money you can loan to yourself, interest free.”
The Consumer Federation of America (CFA) is warning consumers to exercise extreme caution when using Internet payday loan sites.

Oakland Post

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Uncategorized

Oakland Housing and Community Development Department Awards $80.5 Million to Affordable Housing Developments

Published

7 months ago

June 17, 2025

Oakland Post

Special to The Post

The City of Oakland’s Housing and Community Development Department (Oakland HCD) announced its awardees for the 2024-2025 New Construction of Multifamily Affordable Housing Notice of Funding Availability (New Construction NOFA) today Five permanently affordable housing developments received awards out of 24 applications received by the Department, with award amounts ranging from $7 million to $28 million.

In a statement released on Jan. 16, Oakland’s HCD stated, “Five New Construction Multifamily Affordable Housing Development projects awarded a total of $80.5 million to develop 583 affordable rental homes throughout Oakland. Awardees will leverage the City’s investments to apply for funding from the state and private entities.”

In December, the office of Rebecca Kaplan, interim District 2 City Councilmember, worked with HCD to allocate an additional $10 Million from Measure U to the funding pool. The legislation also readopted various capital improvement projects including street paving and upgrades to public facilities.

The following Oakland affordable housing developments have been awarded in the current round:

Mandela Station Affordable

238 Affordable Units including 60 dedicated for Homeless/Special Needs
Award: $15 million + previously awarded $18 million
Developer: Mandela Station LP (Pacific West Communities, Inc. and Strategic Urban Development Alliance, LLC)
City Council District: 3
Address: 1451 7th St.

Liberation Park Residences

118 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $28 million
Developer: Eden Housing and Black Cultural Zone
City Council District: 6
Address: 7101 Foothill Blvd.

34th & San Pablo

59 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $7 million
Developer: 34SP Development LP (EBALDC)
City Council District: 3
Address: 3419-3431 San Pablo Ave.

The Eliza

96 Affordable Units including 20 dedicated for Homeless/Special Needs
Award: $20 million
Developer: Mercy Housing California
City Council District: 3
Address: 2125 Telegraph Ave.

3135 San Pablo

72 Affordable Units including 36 dedicated for Homeless/Special Needs
Award: $10.5 million
Developer: SAHA and St. Mary’s Center
City Council District: 3
Address: 3515 San Pablo Ave.

The source of this story is the media reltations office of District 2 City Councilmember Rebecca Kaplan.

Oakland Post

Posts by Oakland Post

Activism

Oakland Housing and Community Development Department Awards $80.5 Million to Affordable Housing Developments

Published

12 months ago

January 30, 2025

Oakland Post

Rebecca Kaplan, interim District 2 city councilmember. File photo.

Special to The Post

The following Oakland affordable housing developments have been awarded in the current round:

Mandela Station Affordable

238 Affordable Units including 60 dedicated for Homeless/Special Needs
Award: $15 million + previously awarded $18 million
Developer: Mandela Station LP (Pacific West Communities, Inc. and Strategic Urban Development Alliance, LLC)
City Council District: 3
Address: 1451 7th St.

Liberation Park Residences

118 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $28 million
Developer: Eden Housing and Black Cultural Zone
City Council District: 6
Address: 7101 Foothill Blvd.

34th & San Pablo

59 Affordable Units including 30 dedicated for Homeless/Special Needs
Award: $7 million
Developer: 34SP Development LP (EBALDC)
City Council District: 3
Address: 3419-3431 San Pablo Ave.

The Eliza

96 Affordable Units, including 20 dedicated for Homeless/Special Needs
Award: $20 million
Developer: Mercy Housing California
City Council District: 3
Address: 2125 Telegraph Ave.

3135 San Pablo

72 Affordable Units including 36 dedicated for Homeless/Special Needs
Award: $10.5 million
Developer: SAHA and St. Mary’s Center
City Council District: 3
Address: 3515 San Pablo Ave.

The source of this story is media reltations office of District 2 City Councilmember Rebecca Kaplan.

Oakland Post

Posts by Oakland Post

Alameda County

Oakland Acquisition Company’s Acquisition of County’s Interest in Coliseum Property on the Verge of Completion

The Board of Supervisors is committed to closing the deal expeditiously, and County staff have worked tirelessly to move the deal forward on mutually agreeable terms. The parties are down to the final details and, with the cooperation of OAC and Coliseum Way Partners, LLC, the Board will take a public vote at an upcoming meeting to seal this transaction.

Published

1 year ago

January 11, 2025

Oakland Post

Alameda County Board of Supervisors Chairman David Haubert. Official photo.

Special to The Post

The County of Alameda announced this week that a deal allowing the Oakland Acquisition Company, LLC, (“OAC”) to acquire the County’s 50% undivided interest in the Oakland- Alameda County Coliseum complex is in the final stages of completion.

Oakland has already finalized a purchase and sale agreement with OAC for its interest in the property. OAC’s acquisition of the County’s property interest will achieve two longstanding goals of the County:

The Oakland-Alameda Coliseum complex will finally be under the control of a sole owner with capacity to make unilateral decisions regarding the property; and
The County will be out of the sports and entertainment business, free to focus and rededicate resources to its core safety net

In an October 2024 press release from the City of Oakland, the former Oakland mayor described the sale of its 50% interest in the property as an “historic achievement” stating that the transaction will “continue to pay dividends for generations to come.”

The Board of Supervisors is pleased to facilitate single-entity ownership of this property uniquely centered in a corridor of East Oakland that has amazing potential.

“The County is committed to bringing its negotiations with OAC to a close,” said Board President David Haubert.