Business

Auto loan delinquencies climbed to $9 billion in 2018

NNPA NEWSWIRE — … in April of last year, Congress used the Congressional Review Act to nullify the Consumer Financial Protection Bureau’s (CFPB) auto finance guidance that held auto lenders responsible for discriminatory lending practices prohibited under the Equal Credit Protection Act. This distorted use of the Congressional Review Act, sometimes known as another CRA, was never intended to overturn long-standing agency practices.

Published

7 years ago

February 18, 2019

Oakland Post

By Charlene Crowell, NNPA Newswire Contributor

In recent months, many economists and lawmakers have frequently touted how the nation’s economy is performing really well. Often citing historically low unemployment rates, I’ve always felt that such pronouncements failed to consider the untold millions of Americans who are eking out a living on low or no raises, or others who work multiple jobs trying to piece together a living for their families.

But new data from the Federal Reserve Bank of New York, offers hard evidence that a key sector of the economy is showing signs of distress: auto loans. At the end of 2018, 7 million consumers were three months behind on their car payments, according to the Fed’s Liberty Street Economics.

Addressing its finding of multi-million auto loan delinquencies, the Fed wrote, “That is more than a million more troubled borrowers than there had been at the end of 2010 when the overall delinquency rates were at their worst, since auto loans are now more prevalent.”

I suspect that many consumers want to keep a car available just as much as a roof over their heads. Reliable wheels also offer a certain amount of freedom of mobility that eliminates the need to know a train or bus route or the fare.

So why are so many consumers delinquent on their car loans?

Answers can be found by examining the terms of the loans. Just as the foreclosure crisis took people’s homes, the wrong car loan takes your mobility. Consumers with lower credit scores – less than 620 on a scale that reaches 850 – become easy targets for sub-prime auto finance that comes with interest rates from the mid-teens to as high as 20 percent. Auto finance companies are often used by lower credit score consumers looking to buy a car.

By comparison, consumers with credit scores of 661 to 780 or higher typically have car loan interest rates of 6 percent or less. These consumers frequently finance their autos from banks, credit unions, or the financing arms of major auto manufacturers. Of the nation’s $1.27 trillion in car loan debt, 30 percent of loans were made to consumers with credit scores over 760.

As Liberty Street reports, 6.5 percent of auto finance loans are 90 days or more past due, compared with only 0.7 percent of loans originated by credit unions. So unfortunately, once again, it is the struggling, working poor who are bearing the brunt of car loan delinquencies, often forged by predatory high-interest rates and other practices.

Another new and independent research report entitled, Driving Into Debt, found that the money now owed on cars is up 75 percent since the end of 2009, an all-time record.

Jointly authored by U.S. Public Interest Research Group (US PIRG) and the Frontier Group, this report states that subprime auto lenders inflict financial abuses that are both predatory and discriminatory from making loans to people without the ability to repay, marking up rates and prices on both Black and Latino customers, and financing expensive add-on products like extended warranties and insurance into the car loans.

“Americans shouldn’t have to fight their way through a thicket of tricks and traps at the auto dealer just to get the transportation they need to get to work or school,” said Ed Mierzwinski, U.S. PIRG’s senior director for federal consumer programs and a report co-author.

Nor does it help that in April of last year, Congress used the Congressional Review Act to nullify the Consumer Financial Protection Bureau’s (CFPB) auto finance guidance that held auto lenders responsible for discriminatory lending practices prohibited under the Equal Credit Protection Act. This distorted use of the Congressional Review Act, sometimes known as another CRA, was never intended to overturn long-standing agency practices.

But in 2018, the law was used to overturn 14 agency rules. At the time, Senate Majority Leader Mitch McConnell described the auto lending CRA as part of a broader deregulation effort, stating: “Our whole economy is getting a tune-up. And now it’s time for the front end of the auto industry to come along for the ride.”

That kind of perspective suggests that the Majority Leader may have an unhealthy regard for fair lending laws, particularly those aimed at eliminating racial and ethnic discrimination. Further, time and actions will tell how much Kathy Kraninger, the new CFPB Director, is attuned to the predatory and discriminatory lending that continues despite federal laws.

“We need a strong Consumer Financial Protection Bureau and help from state Attorneys General and local officials to enforce consumer and fair lending laws against unfair car loan tactics,” added Mierzwinski. “Otherwise, consumers and the overall economy will suffer.”

“Predatory and discriminatory auto lending practices notoriously prey upon the financially distressed, with loans that disregard the consumer’s ability to afford them,” noted Rebecca Borne, a Senior Policy Counsel with the Center for Responsible Lending. “Common-sense regulation and enforcement are needed to ensure responsible underwriting and elimination of other predatory practices that are consistently shown to result in borrowers of color paying more than white borrowers, even controlling for creditworthiness.”

Charlene Crowell is the Center for Responsible Lending’s Communications Deputy Director. She can be reached at Charlene.crowell@responsiblelending.org.

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Activism

The Ladies of Delta Sigma Theta Hold Day of Advocacy at the Capitol in Sacramento

A member of the “Divine Nine,” Delta Sigma Theta Sorority, Inc., was founded on Jan. 13, 1913, at Howard University in Washington, D.C. The organization was established by 22 women who sought to shift the group’s focus from social activities to public service, academic excellence, and social activism.

Published

1 day ago

May 17, 2026

Oakland Post

Sen. Laura Richardson (D-San Pedro) presents a Senate resolution to the Delta Theta Sigma Sorority Farwest Region at the State Capitol on May 4. Photo courtesy of the Senate Rules Committee.

By Antonio Ray Harvey, California Black Media

On May 4, members of the Farwest Region of Delta Sigma Theta Sorority, Inc., convened at the California State Capitol for the organization’s 23rd annual Delta Days in Sacramento.

The two-day advocacy event brings together chapters from across California to engage directly in the legislative process, connect with lawmakers, and advocate for policies impacting Black communities.

Members of the sorority were honored on the Senate floor by Sen. Laura Richardson (D-San Pedro), who is also a member of Delta Sigma Theta.

Richardson welcomed the Farwest Region during the presentation of a Senate resolution recognizing outgoing Regional Director Kimberly Usher for her leadership and service.

“In addition to the Far West Region, we are led by a fearless leader, regional director Kimberly Usher. She has now served her full term of what’s allowed,” Richardson said. “We are going to be having our regional conference, but we wanted to give it to her here, officially recognizing her service.”

The resolution was co-authored by Richardson and fellow members of the California Legislative Black Caucus (CLBC) and Delta Sigma Theta, Sen. Akilah Weber Pierson (D-San Diego) and Assemblymember Rhodesia Ransom (D-Stockton).

Usher has served in the leadership role since 2022.

“We are founded on sisterhood that is deeply rooted in scholarship, service, and social action,” said Weber Pierson, a member of the Gamma Alpha chapter of Delta Sigma Theta Sorority.

“Today, we continue a legacy of empowering communities and upholding the high cultural, intellectual, and moral standards established by our founders over a century ago,” she added.

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Bay Area

How Is AI Affecting California? The State Wants You to Share Your Story

The program marks the first time the state has opened the platform to all Californians. State officials said the effort is designed to give residents a direct role in discussions about how AI should be regulated and used as the technology rapidly expands across industries.

Published

1 day ago

May 17, 2026

Oakland Post

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By Bo Tefu, California Black Media

Gov. Gavin Newsom announced May 7 that California is expanding its Engaged California digital democracy initiative statewide, inviting residents to help shape future state policies on artificial intelligence (AI) and its impact on jobs and the economy.

“We’ve got to be clear-eyed about this moment: AI is moving fast, bringing enormous opportunity, but also real risks,” Newsom said in a statement. “Californians deserve a seat at the table as we shape what’s to come.”

The initiative will roll out in two phases. Beginning immediately, Californians can sign up online to share how AI is affecting their work and communities and provide ideas for possible government action. Later this summer, a smaller group reflecting the state’s workforce demographics will participate in live discussions focused on developing policy recommendations.

State officials said the goal is to identify areas of agreement among Californians and provide policymakers with public feedback as the state develops future AI regulations and workforce strategies.

Engaged California is modeled after digital democracy programs used in Taiwan and is intended to encourage structured public discussion rather than social media-style debate. Officials described the effort as a form of “deliberative democracy” aimed at helping residents engage directly in state decision-making.

“The more Californians are engaged in the democratic process, the better able we’ll be to confront the challenges we face together,” said Nick Maduros, California Secretary of Government Operations, in a statement.

The statewide launch builds on two earlier pilot programs. One pilot gathered public input following the Los Angeles firestorms to help guide recovery efforts, while another collected ideas from state employees about improving government operations.

California has positioned itself as a national leader in AI policy and development. Since 2023, the Newsom administration has introduced initiatives focused on responsible AI use in government, cybersecurity protections, workforce training and regulations targeting risks such as deepfakes and AI-generated robocalls.

The state has also partnered with companies in Silicon Valley — including NVIDIA, Google, Adobe, IBM and Microsoft — to expand AI education and workforce training programs across California schools and universities.

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Advice

Book Review: Books for College-Bound Students

The kind of workday your Grandpa had is probably over, and you can’t count on toiling at the same place for 40 years for a pension and a gold watch. You already know that, and these books will help you decide your next step. You’ll learn what kind of worker you are, what’s stopping you from finding a job or occupation you’ll love, how to determine the purpose you envision for your future, and how to get where you need to be.

Published

1 day ago

May 17, 2026

Oakland Post

Book covers. Photo courtesy of Terri Schlichenmeyer.

By Terri Schlichenmeyer

Authors: Various, Copyright: c.2026, Publishers: Various, SRP: $21.00 – $29.00, Page Counts: Various

The videos and news reports were inspiring.

In them, a hesitant prospective college student became a happy, new college-bound student with the click of a key. They were accepted into the college of their dreams – so how can you get the same feeling next spring, when you’re the one with the highest of hopes?

You can start by reading these great books and sharing them with your family…

You probably already know that getting into the college of your choice is not something you do last-minute. In “The People’s Guide to College Applications: A Week-by-Week Approach to Writing, Connecting, and Getting in” (Prometheus Books, $ 21.95), Jill Constantino takes you through each step, but not in a frantic way. There’s no pressure here, just easy-to-grasp, makes-sense methods to apply for the college you want. There are reminders here, things you can’t forget and things you can, hints on asking for referrals and writing essays, and plenty of reminders to take a deep breath. Bonus: it’s also a book for parents, who may feel just as much pressure as their child does.

Okay, but let’s say that you’re an adult, a parent who’s sweating those college applications, classes, and the FAFSA for yourself, ugh! Then you’ll want to read “Student Parent: The Fight for Families, the Cost of Poverty, and the Power of College” by Nicole Lynn Lewis (Beacon Press, $26.97). an urgent call meant for nontraditional students who are also Black, Latinx, gay, Moms, or Dads.

Inside this book, you’ll find stats and stories that may already sound familiar, tales of not enough money, not enough support, not enough arms or sleep or resources. If you’re looking for a book of advice, this isn’t it, though. It’s more of a resource that you’ll want to take to your guidance counselor or any local politician.

Alright, but what if you’ve decided that college can wait? Is that okay? Look for “The Mission Generation: Reclaim Your Purpose, Rewrite Success, Rebuild Our Future” by Arun Gupta and Thomas J. Fewer (Wiley, $29.00) because – guess what? – you have many options for your future.

The kind of workday your Grandpa had is probably over, and you can’t count on toiling at the same place for 40 years for a pension and a gold watch. You already know that, and this book will help you decide your next step. You’ll learn what kind of worker you are, what’s stopping you from finding a job or occupation you’ll love, how to determine the purpose you envision for your future, and how to get where you need to be. This book isn’t just for high schoolers, but for anyone ages 16 and beyond who’s feeling restless, ready for change, or who’s thinking about some kind of purposeful retirement.

And if these aren’t the college-based or not-college-bound books you need, then be sure to ask your favorite bookseller or librarian for help on ideas, how-to’s, test prep books, or study guides. They’ll have books for you, and maybe a little inspiration, too.