Connect with us

#NNPA BlackPress

Consumer Financial Protection Bureau Gives a Green Light to Predatory Payday Lenders

NNPA NEWSWIRE — “There is never a good time to enable predatory loans carrying 400% interest rates,” noted Mike Calhoun, President of the Center for Responsible Lending (CRL), “but this is the worst possible time. The pain caused by the CFPB gutting the payday rule will be felt most by those who can least afford it, including communities of color who are disproportionately targeted by payday lenders.”

Published

on

With nearly half of American adults living in households that have experienced a loss of income, and more than 40% of adults delaying medical care due to financial concerns, there is no justification for abandoning consumer financial protections.
With nearly half of American adults living in households that have experienced a loss of income, and more than 40% of adults delaying medical care due to financial concerns, there is no justification for abandoning consumer financial protections. (PHOTO: iStockphoto / NNPA)

Ability-to-Repay Stripped from Regulation

By Charlene Crowell, Senior Fellow with the Center for Responsible Lending

As COVID-19 continues to wreak havoc throughout the country, the Consumer Financial Protection Bureau (CFPB) recently took an ill-advised and untimely action. On July 7, the agency gutted its own 2017 payday rule that required lenders to first determine whether a consumer could afford to repay the high-cost loan.

This regulatory reversal represents a financial favor to payday and car-title lenders, and certain harm to consumers who are just a few hundred dollars short for their monthly expenses. In very real and measurable ways, the agency created to protect consumers gave a green light to predatory lenders to continue to prey upon the nation’s poorest and most vulnerable consumers.

“There is never a good time to enable predatory loans carrying 400% interest rates,” noted Mike Calhoun, President of the Center for Responsible Lending (CRL), “but this is the worst possible time. The pain caused by the CFPB gutting the payday rule will be felt most by those who can least afford it, including communities of color who are disproportionately targeted by payday lenders.”

The COVID-19 pandemic has jeopardized the ability of people to safely go to work, altered how students try to continue their studies, and imposed grim realities in meeting life’s most basic needs like food, shelter, and utilities.

Consumers affected by job layoffs should also mark their calendars for July 31. On that day, the additional $600 in monthly federal unemployment benefits through the CARES Act will expire.  Additionally, renters who have managed to preserve their housing even when they could not pay, should also be mindful of whether eviction notices will come their way. Either of these circumstances carry the potential for America’s most cash-strapped consumers to seek and become financially trapped in unaffordable predatory loans.

The lure of ‘quick and easy’ cash entraps an estimated 12 million American consumers each year. Instead of a short-term financial fix, most loans last several months or longer to fully repay. CRL research finds that the typical payday loans are in strings of 10 or more. Further, the amount of interest paid on the loan often exceeds the dollars originally borrowed.

Even with decades of consumer advocacy, triple-digit interest on payday loans remains legal in 34 states. In these locales, the profusion of payday and car-title stores located in Black and other communities of color increases the likelihood of consumers becoming financial prey that ensures lenders of an annual $8 billion in fees alone. The growth in online lending increases access to these loans.

“By disproportionately locating storefronts in majority Black and Latino neighborhoods,” observed Rachel Gittelman, Financial Services Outreach Manager with the Consumer Federation of America, “predatory payday lenders systematically target communities of color, further exacerbating the racial wealth gap.”

Historically, Blacks have been disproportionately affected by unemployment compared to other racial and ethnic groups. That trend continues to hold in the midst of the pandemic. As of early July, and according to the Bureau of Labor Statistics, 17.8 million people were unemployed.  Black unemployment at 15.4%, was closely followed by that of Latinos at 14.5%. By comparison, only 10% of whites were unemployed. However, multiple news outlets report that the nation’s total unemployed since the spring onset of the pandemic is 30 million.

“The CFPB has no basis for gutting the heart of common-sense protections that merely required payday lenders to do what responsible lenders already do: ensure that the borrower has the ability to repay,” noted Lauren Sanders, the National Consumer Law Center’s Associate Director. “The evidence to support the debt trap of payday loans is overwhelming and the CFPB’s flimsy excuses for repealing protections do not stand up.”

Earlier this year, a poll conducted by Morning Consult and commissioned by CRL found strong and bipartisan support for a 36% rate cap on payday and installment loans. With a 70% national majority, voters supported the double-digit rate cap. On a state-by-state basis, voter support for a rate cap had a range of 64-73%. Further 62% of polled voters had an unfavorable view of payday lenders.

With nearly half of American adults living in households that have experienced a loss of income, and more than 40% of adults delaying medical care due to financial concerns, there is no justification for abandoning consumer financial protections.

If a 36% rate cap is good enough for the nation’s military be protected from predatory lending – which is the law for service members under the federal Military Lending Act — it is time to extend that same protection to the civilian population.

Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at charlene.crowell@responsiblelending.org

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

#NNPA BlackPress

COMMENTARY: Coach Saban, Shut Up and Coach

NNPA NEWSWIRE — Jackson State will continue to get its fair share of 5-Star recruits. Coach Prime and all HBCUs can offer an experience that Alabama certainly can’t. It’s nothing like an HBCU experience. This is just the beginning. We will continue to see 5-Star Black athletes signing with HBCUs.
The post COMMENTARY: Coach Saban, Shut Up and Coach first appeared on BlackPressUSA.

Published

on

By

By Burl “The Coach” Jones, Sports Editor, Houston Forward Times

Recently, Alabama Head Football Coach Nick Saban made a statement that Texas A&M bought every player they signed with NIL (Name, Image, and Likeness) deals.

Alabama came in second in recruiting this year. That has rarely happened since Saban stepped on campus at Alabama. He also stated that Jackson State University, an HBCU coached by Deion Sanders, signed the #1 recruit in the country to a $1 million NIL deal.

The NIL phenomenon was created in June 2021 by the NCAA. This allows athletes to be paid for the use of their name, image, and likeness. Previously, the NCAA made billions in revenue off the backs of college athletes. With the advent of the NIL, expect a shift in the landscape of college football recruiting.

Schools like Texas A&M, Texas, and Oklahoma, have very rich boosters and alumni who have access to millions. They will come up with very creative ways to offer lucrative NIL deals to 5-star recruits. This apparently doesn’t sit well with Coach Saban, who is used to having his way, and getting most of the 5-Star recruits to sign with Alabama.

This will definitely level the playing field and gives schools like Texas A&M, that hasn’t won a National Championship in decades, a chance to recruit 5-Star athletes on a national level and could eventually lead to them winning a National Championship in the near future.

At least that’s what they hope in College Station.

As far as Coach Saban’s statement about Jackson State signing the #1 recruit in the country to a $1 million NIL deal is concerned, that was quickly debunked by Coach Prime, who immediately tweeted that he will address that lie. He followed that up with this statement:

“I haven’t talked to Coach Saban. I’m sure he tried to call. We need to talk publicly- not privately. What you said was public, that doesn’t require a private conversation. Let’s talk publicly and let everybody hear the conversation.”

Coach Saban is speaking from a place of privilege and bigotry. He is used to having his way and getting the players he wants. How dare a little old HBCU such as Jackson State get the #1 recruit in the country? It’s a slap in the face to all HBCUs to insist that they must pay a Black kid to attend an HBCU.

Paying recruits is certainly not new; it has been going on for years.

Former Houston Texan Travis Johnson, who was a 5-Star recruit, recently stated that Alabama offered him six figures in 2000 when he was being recruited.

“Y’all were the NIL before the NIL,” he said.

Jackson State will continue to get its fair share of 5-Star recruits. Coach Prime and all HBCUs can offer an experience that Alabama certainly can’t. It’s nothing like an HBCU experience. This is just the beginning. We will continue to see 5-Star Black athletes signing with HBCUs.

Coach Saban needs to be concerned about that pipeline that he had in Texas, getting those 5-Star recruits to leave the state. That oil money in Texas will be keeping those boys at home. Texas and Oklahoma will be joining the SEC in a few years and that will also influence Saban’s ability to recruit in Texas.

With all those factors coming into play, here is a bit of advice Coach Sabin:

SHUT UP AND COACH!!

“I’m just Telling It Like It Is!!”

The post COMMENTARY: Coach Saban, Shut Up and Coach first appeared on BlackPressUSA.

Continue Reading

#NNPA BlackPress

COMMENTARY: Racism Rears Its Ugly Head in the Buffalo Shootings

NNPA NEWSWIRE — Racial tragedy struck Buffalo, New York, on May 14th. Hate came up from the ground and reared its inhumane and immoral head. Ten Black people were murdered by a White man who hated Black people. It’s that simple and that sad. Payton S. Gendron, 18 years old, was the shooter. He also injured 3 people as well during this shooting spree.
The post COMMENTARY: Racism Rears Its Ugly Head in the Buffalo Shootings first appeared on BlackPressUSA.

Published

on

By

By James B. Ewers Jr. Ed.D., Houston Forward Times

Racism is a longstanding social illness in the United States of America. Seemingly, there is no cure for it.

It has been with us for as long as I can remember. The result of it has created heartache and heartbreak.

Lives have been lost and it has left the stain of disgrace on this country. Accomplishments, it could be argued, are sometimes overshadowed by our blatant disregard for some members of our beloved community.

I know for sure that racism will be around for as long as I live. It has been a part of my life experiences.

Unfortunately, and I say this with no pride, I have witnessed racism up close and personal.

I have been around long enough to watch the many levels of racism that exist in this country.

For example, we have had educational racism. Segregated schools were the norm until the case, Brown versus the Board of Education of Topeka ended it.

Did that stop us from getting an education?

The answer is a resounding no!

Black colleges, now called Historically Black Colleges and Universities (HBCUs), were founded in order that higher education was afforded to African Americans.

At this moment, HBCUs are the hottest and most talked about educational venue in the land.

Everybody wants to attend an HBCU. I am a graduate of an HBCU (Johnson C. Smith University), and I know the power and influence they have.

The right to vote has always been problematic for African Americans. It is a fundamental right for all Americans, according to the Founding Fathers.

The problem is that the ‘current fathers’ don’t see it that way.

Will that stop us?

The answer is another resounding no!

African Americans are now voting in record numbers and that trend will continue.

There are states in this union that are creating trumped-up rules to keep us from exercising our privilege at the polls.

Some in this country have taken racism below ground zero. There are people in our states who hate Black people and want to kill us.

That is a powerful statement, yet it is factual and true.

Interestingly, there are citizens who believe the opposite. I suspect their experiences are different, and they live in an almost contactless America.

If you are one of those people, pay close attention now.

Racial tragedy struck Buffalo, New York, on May 14th.

Hate came up from the ground and reared its inhumane and immoral head.

Ten Black people were murdered by a White man who hated Black people.

It’s that simple and that sad.

Payton S. Gendron, 18 years old, was the shooter. He also injured 3 people as well during this shooting spree.

The victims were assaulted at a Tops Friendly Markets store and the victims ranged in ages from 20-86.

This crime of hate is unthinkable and was done with malicious intent.

The killer was not a Buffalo resident. He drove approximately 200 miles from Conklin, New York, to commit this heinous crime.

Gendron had already scouted out the place for his crime. He knew that many African Americans shopped at that location. That is sick beyond words.

According to reports, Police Commissioner Joseph Gramaglia said, “We found some things that show he was here in early March, and then again, we know he was here on Friday, basically doing reconnaissance on the area.”

Gramaglia added, “He was in the store, both on Friday and Saturday.”

These statements were made by him to CNN’s Erin Burnett.

Payton S. Gendron surrendered to police after this life-altering atrocity.

America, where are we headed? Only time will tell.

The post Racism Rears Its Ugly Head in the Buffalo Shootings appeared first on Houston Forward Times.

The post COMMENTARY: Racism Rears Its Ugly Head in the Buffalo Shootings first appeared on BlackPressUSA.

Continue Reading

#NNPA BlackPress

American Petroleum Institute Lays Out Solutions to Rising Gas Prices

NNPA NEWSWIRE — A study of fact sheets provided by the American Petroleum Institute suggests that the complicated answer includes more production in America, which could add more supply. “More U.S. supply means relief for the global market,” Lem Smith, API’s vice president for Federal Relations, wrote in an op-ed.
The post American Petroleum Institute Lays Out Solutions to Rising Gas Prices first appeared on BlackPressUSA.

Published

on

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

The average price for a gallon of gasoline has hit record numbers in Los Angeles and Philadelphia.

This week prices rose nationally by four cents, and consumers wondered why the cost is so high.

A study of fact sheets provided by the American Petroleum Institute suggests that the complicated answer includes more production in America, which could add more supply. “More U.S. supply means relief for the global market,” Lem Smith, API’s vice president for Federal Relations, wrote in an op-ed.

“America has an abundance of resources right under our feet, and policymakers should send a clear message that America is open for energy investment,” Smith declared.

API noted that gasoline prices are determined by the supply and demand of crude oil and expenses for refining, distribution, retailing, and taxation. Those fundamental market realities drive prices at the pump, officials stated.

The main components of retail gasoline prices are the cost of crude oil, taxes, refining costs, and distribution and marketing costs, API officials stated.

Of those, the price of crude oil has the most significant impact – accounting for 56 percent of the cost.

“Because of this, changes in the price reflect the global cost of crude oil, which is influenced by current conditions and expectations of consumer demand, supply, inventories, geopolitical events, and other factors, generally have an effect on pump prices,” the organization stated in a fact sheet.

Further, federal, state, and local governments levy various taxes in fees on transportation fuels.

The nationwide average tax on gasoline is 57.09 cents per gallon, including a federal tax of 18.4 cents per gallon and state-level taxes that range from 68.15 cents per gallon in California and 15.13 cents per gallon in Alaska.

API President and CEO Mike Sommers recently discussed the critical importance of American energy leadership “at a time of geopolitical volatility and rising energy costs around the world.”

Sommers urged policymakers to advance U.S. natural gas and oil production to support stability in global energy markets and ensure access to affordable, reliable energy for American consumers and our allies overseas.

“Most everyone knows that the world needs oil and natural gas in a big way and will for decades or more to come; the only question is where that oil and gas is going to come from,” Sommers remarked.

“As much as ever, we need to think hard about that economic truth and our energy future. That means recognizing energy from natural gas and oil as the critical strategic asset it is to America.”

“We can’t treat oil and natural gas as a kind of switch that is turned on or off to suit the moment,” Sommers continued.

“Production and delivery don’t work that way. Yet the overriding policy lately has been to cancel pipelines, block permits and deny leases – all things that discourage investment.

“As more Americans face the consequences of bad policy, the elements of good policy become that much more apparent and desired. We have an opportunity together to re-center the energy discussion with basic realities and good common sense as our starting point.”

Sommers called on the administration and Congress to develop a new five-year offshore leasing program; hold onshore leases on federal lands per the Mineral Leasing Act; approve LNG export applications and allow the approval of exports to non-free-trade-agreement nations, and craft transparent, consistent permitting regulations to enable the development of vital energy infrastructure.

The U.S. has pledged to increase LNG exports to Europe by 65 percent over the next six years.

How quickly could U.S. oil producers scale up production to put downward pressure on domestic gasoline costs?

What could the federal government do to promote that production?

API officials said it begins with access to resources, advancing infrastructure, and enabling – rather than deterring – the industry’s financing.

“Importantly, financial markets have become less hospitable to the natural gas and oil industry partly because of the Biden administration’s positions, policies, and signals,” API officials asserted.

“Those who have capital may be reluctant to invest in long-lived energy assets in such a climate, and a relatively fixed pool of cash flows that could be re-invested by industry have been increasingly spread thin.”

API listed four “concrete actions” the organization believes the Biden-Harris administration could immediately take to support American production.

They include conducting federal lease sales, completing a new five-year program for federal offshore leasing, supporting energy infrastructure, and reopening access to Alaska.

“The administration should reinstate the leases it suspended in Alaska’s Arctic National Wildlife Refuge and the permit development it approved in the National Petroleum Reserve,” API officials wrote.

“These were permitted with stringent environmental standards and could prove a significant source of domestic production over time.”

The post American Petroleum Institute Lays Out Solutions to Rising Gas Prices first appeared on BlackPressUSA.

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

Trending