Connect with us

#NNPA BlackPress

COVID-19 financial warning: Consumers and banks should stay away from payday loans

NNPA NEWSWIRE — Zeroing in on the economic impacts of the crisis, people everywhere are struggling with competing needs in their lives. When living costs exceed available financial resources, tough times lead to tough decisions about how to feed families, keep a home to live in, ways to keep utilities working and a myriad of other day-to-day needs.

Published

on

Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at charlene.crowell@responsiblelending.org. (Photo: iStockphoto / NNPA)

By Charlene Crowell, NNPA Newswire Contributor

For the foreseeable future, ‘normal’ life will be indefinitely suspended due to the global pandemic known as the coronavirus.

Record-breaking employment layoffs in the month of March resulted in the Department of Labor reporting that 10.4 million consumers lost their jobs and filed for unemployment compensation. As medical experts continue to track the virus, the New York Times reported at least 214,461 known infections and at least 4,800 related deaths.

Beyond these statistics, untold numbers of additional school and retail closures, and an expanding army of people working from home have also been directly affected by the virus.

Consumers both young and old have passed as the virus continues to spread across the country. Its viral wrath has spawned hot spots from the Pacific Northwest’s Seattle, to the Gulf Coast’s New Orleans, the Midwest’s Detroit and the nation’s largest urban metropolis, New York City.

Zeroing in on the economic impacts of the crisis, people everywhere are struggling with competing needs in their lives. When living costs exceed available financial resources, tough times lead to tough decisions about how to feed families, keep a home to live in, ways to keep utilities working and a myriad of other day-to-day needs.

Despite a $2 trillion federal rescue enacted with bipartisan support, checks of $1,200 promised to taxpayers, along with an additional $500 per child will arrive too late for first of the month April payments for bills like mortgages and rental payments. Many leaders also warn that despite its size or range of areas addressed, the legislation was not enough.

In a March 27 House floor statement, Congresswoman Maxine Waters, Chairwoman of the House Financial Services Committee warned colleagues that their job was not yet complete.

“[I] must make clear that the legislation is far from comprehensive, and that there are issues it leaves unaddressed and areas where it falls short…The American people need help now and this bill represents a down payment on that relief,” said Waters.

A similar reaction came from AARP chief executive Jo Ann Jenkins.

“Older Americans face the one-two punch of coronavirus’s health and economic consequences, and many need immediate relief and ongoing help and support to cope with the pandemic,” noted Jenkins. “Those needs are only set to grow in the weeks and months ahead.”

What can really make a difference between life’s success and failure is not just what leaders do but also what they didn’t do when they had the chance. The recent legislative package was silent on interest rates, as well as forgiveness of federal student loans, negative credit reports or bans on private evictions for late rental payments.

As the cost of living has risen faster and higher than most consumer incomes for more than a decade, the likelihood of a savings account large enough to cover household expenses for a month or more is slim to none.

The Consumer Financial Protection Bureau (CFPB), the agency tasked with protecting consumers from unscrupulous lenders has been conspicuously subdued. Instead of forceful and timely agency alerts via multi-media communications warning consumers about opportunistic scam artists, CFPB has offered a modest tip sheet on how consumers – not government – can protect themselves. Fortunately, as the viral saga unfolds, some news outlets are reporting on the potential harms of consumers turning to payday and car-title loans.

A joint response by five federal regulars – Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) – came on March 26 in a statement that encouraged banks, savings and loans, and credit unions to offer “responsible small dollar loans” to consumers and small businesses during the pandemic.

According to the regulators, “responsible small-dollar loans can play an important role in meeting customers’ credit needs because of temporary cash-flow imbalances, unexpected expenses, or income disruptions during periods of economic stress or disaster recoveries.”

Without any specifics defining “reasonable small dollar loans”, the regulators’ statement could be an inducement to join triple-digit lenders’ financial exploitation.

For Black America and other communities of color, predatory short-term loans of $500 or less began decades ago when payday and car-title storefronts took prominent residence in our neighborhoods across the country. Loans that were marketed as quick fixes for millions of consumers morphed into long-term financial nightmares that deepened debt with every renewal. In many cases, the interest paid on these loans was often double or triple the amount of principal borrowed.

A coalition of civil and consumer rights organizations released a joint statement warning of the possible spike in high-cost lending by the nation’s depository institutions – banks, credit unions and savings and loans.

“This is the worst possible time for banks to make predatory payday loans,” said Americans for Financial Reform Education Fund, the Center for Responsible Lending, Leadership Conference for Civil and Human Rights, NAACP, National Consumer Law Center.

“Around the time of the last recession, a handful of banks issued ‘deposit advances’ that put borrowers in an average of 19 loans a year at over 200% annual interest,” continued the leaders.  “These bank payday loans disproportionately harmed the financially vulnerable and badly damaged banks’ reputations. Since 2013 when regulatory guidance warned against this form of credit, banks have mostly stayed away. We trust that they will continue to do so as they do not want to repeat mistakes of the past.”

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

#NNPA BlackPress

PRESS ROOM: First Book, an Innovative Leader in Education Equity, Releases Groundbreaking Research Illustrating the Impact of COVID-19 on Emotional Wellness of Students in Underserved Communities

NNPA NEWSWIRE — “Collaborating with First Book to provide educators with evidence-informed activities and curriculum is one more step forward in making sure they feel more prepared to support their students,” said Ariana Hoet, Ph.D., clinical director of On Our Sleeves and pediatric psychologist at Nationwide Children’s Hospital. “Educators have been on the frontline supporting children’s mental health before and throughout the pandemic with limited resources. We know the pandemic has exacerbated worries around children’s mental health, so this need is even more crucial than ever.”

Published

on

By

Nearly One Thousand Educators Participated; Report that over half (53%) of the students they serve struggle with their mental health

WASHINGTON, First Book, a nonprofit organization dedicated to ensuring education equity for children living in poverty, today announced the results of a national survey designed to identify emotional wellness challenges faced by school-age children. In addition to reinforcing earlier findings regarding the devastating mental health effects of COVID-19, this survey shed new light on the severity of this impact — especially in communities of need. It also established that emotional wellness issues have become a significant barrier to education for many students who attend schools in these communities – a majority of whom are children of color. Pediatric psychologists from Nationwide Children’s Hospital’s On Our Sleeves movement for children’s mental health partnered with First Book to offer a clinical perspective on survey questions and process.

In the new survey findings, educators report that 53 percent of the students they serve struggle with their mental health and only 20 percent of educators feel prepared to support the mental well-being of their students. Of significant concern, 98 percent of educators say mental health challenges act as a barrier to children’s education. And notably, educators are facing their own mental health challenges. Student mental wellness issues have a ripple effect on educators who feel helpless and unsupported.

“Educators across the country are speaking out about the urgency of the mental wellness issues that their students are facing, how they don’t feel prepared to address the issues, and how those issues act as a barrier to learning. Based on what we’re hearing from our Network of educators, this is truly a crisis,” said Kyle Zimmer, president and CEO, First Book. “First Book is committed to supporting low-income communities that have been disproportionally impacted by the pandemic and the data revealed in this survey is guiding us in providing educators with high-quality, research-driven tools to nurture emotional wellness and develop healthy habits that prepare students to not only learn but thrive.”

On an ongoing basis First Book solicits input from its Network of more than 525,000 educators – all of whom serve children in need – to enable the organization to directly address the needs of practitioners and the children they serve. Mental wellness was spotlighted as a critical problem exacerbated by COVID-19, leading the organization to design focus groups and a survey to better understand the magnitude and scope of the issue, as well as what is needed to address this barrier to education. Nearly 1,000 educators responded to the survey providing startling data. The results provided a framework for the resource, which is now available, entitled: Taking Care: An Educator Guide to Healthy Habits for Student Emotional Wellness, a free resource created in collaboration with On Our Sleeves. The resource and study are now available through First Book.

“Collaborating with First Book to provide educators with evidence-informed activities and curriculum is one more step forward in making sure they feel more prepared to support their students,” said Ariana Hoet, Ph.D., clinical director of On Our Sleeves and pediatric psychologist at Nationwide Children’s Hospital. “Educators have been on the frontline supporting children’s mental health before and throughout the pandemic with limited resources. We know the pandemic has exacerbated worries around children’s mental health, so this need is even more crucial than ever.”

According to the First Book study, the top three life circumstances or experiences that contribute to children’s mental health challenges are 1) unstable or difficult home life; 2) hunger/food insecurity and 3) isolation due to Covid-19. Because these three factors often intersect as children grapple with returning to normalcy post-pandemic, the resources First Book provides to educators are essential tools for helping them become better equipped to aid students who are still dealing with the effects of Covid-related depression, trauma, loneliness, and loss.

First Book’s findings are particularly relevant given recent warnings issued by professional organizations such as the American Academy of Pediatrics, the American Academy of Child and Adolescent Psychiatry, and the Children’s Hospital Association. These groups have declared a national emergency in children’s mental health and have noted that psychological strains, made worse over the past few years by pandemic-associated isolation, anxiety, fear, and grief, have caused a crisis in several societal sectors including education. They also emphasize that children in communities of color have been disproportionately impacted due to previously unresolved inequities linked to structural racism.

Additional key findings in First Book’s survey include:

  • 72% of educators say the pandemic has introduced new mental health challenges among students/children;
  • 65% of educators report the pandemic has exacerbated the existing mental health challenges students already faced;
  • 80% of educators believe gaining access to mental health support is a high or emergency priority in relation to students’ overall needs at this time;
  • 98% of educators say mental health challenges act as a barrier to children’s education;
  • 93% of educators became aware that a student was struggling with mental health issues due to a noticeable change in behavior;
  • 92% of educators indicated they are very or extremely interested in accessing support resources focused on promoting the general mental health and well-being of all students;
  • 51% of educators report that a student’s race/racial identity is relevant to their mental health;
  • 68% of respondents indicate that they take a child’s race and/or culture into consideration when supporting their mental well-being (e.g. observe family/cultural norms, design a culturally inclusive curriculum, and foster open and trusting relationships with their students);
  • 74% of educators are very or extremely interested in accessing support resources to help them approach mental health challenges related to race, identity, and intersectionality;
  • Older children reportedly struggle more than younger children. Educators serving middle and high school students estimate that 59% and 60% (respectively) of the students they serve struggle with mental health, while early childhood and elementary educators estimate 50% and 52% (respectively) of their students struggle.  This compares to the general population at 53%;
  • Educators in urban and suburban communities consider addressing mental health as a stronger priority (83% high/emergency priority) vs. their rural counterparts (75% high/emergency priority).

About First Book

Founded in Washington, D.C., in 1992 as a 501(c)3 nonprofit social enterprise, First Book is a leader in the educational equity field. Over its 29-year history, First Book has distributed more than 200 million books and educational resources, with a retail value of more than $2 billion. First Book believes education offers children in need the best path out of poverty. First Book breaks down barriers to quality education by providing its Network of more than 525,000 registered teachers, librarians, after school program leaders, and others serving children in need with millions of free and affordable new, high-quality books, educational resources, and basic needs items through the award-winning First Book Marketplace nonprofit eCommerce site. The First Book Network comprises the largest and fastest-growing community of formal and informal educators serving children in need.

First Book also expands the breadth and depth of the education field through a family of social enterprises, including First Book Research & Insights, its proprietary research initiative, and the First Book Accelerator, which brings best-in-class research-based strategies to the classroom via relevant, usable educator resources. First Book Impact Funds target support to areas of need, such as rural communities or increasing diversity in children’s books. For more information about First Book, please visit http://www.firstbook.org.

About On Our Sleeves®

Children don’t wear their thoughts on their sleeves. With 1 in 5 children living with a significant mental health concern and half of all lifetime mental health concerns starting by age 14, we need to give them a voice. On Our Sleeves®, powered by behavioral health experts at Nationwide Children’s Hospital, aims to provide every community in America with free resources necessary for breaking child mental health stigmas and educating families and advocates, because no child or family should struggle alone.

Since the inception of On Our Sleeves® in 2018, more than 3 million people in every state across America have interacted with the movement’s free pediatric mental health educational resources at OnOurSleeves.org and educator curricula have reached more than four of five classrooms across the United States.

To schedule an interview with a spokesperson for First Book, please contact Ian Kenison at ikenison@firstbook.org.

Continue Reading

#NNPA BlackPress

Moore Brown: Maryland Set to Have Two Black Statewide Officials

NNPA NEWSWIRE — If they are elected, Maryland would be the first state to have two Black statewide officials. Wes Moore has caught lightning in a bottle. He has run ads that have been narrated by Oprah Winfrey and has captured the excitement of the moment in Maryland.

Published

on

By Lauren Victoria Burke, NNPA Newswire Contributor

On July 19, Wes Moore and Congressman Anthony Brown won their primary contests to be Governor of Maryland and Attorney General.

Maryland is a deep blue state that currently has a moderate Republican Governor. It is expected that Moore and Brown will have a major advantage over their Republican competitors.

If they are elected, Maryland would be the first state to have two Black statewide officials. Wes Moore has caught lightning in a bottle. He has run ads that have been narrated by Oprah Winfrey and has captured the excitement of the moment in Maryland.

Moore’s main opponent was former DOJ Civil Rights chief and DNC Chair Tom Perez. Perez came in second to Moore. The results were 36 percent for Moore, 27 percent for Perez and 19 percent for Peter Franchot.

Wes Moore’s victory is verification that Black statewide candidates in states with over 20 percent of the Black vote can run and win strong campaigns.

Current Governor Larry Hogan has said publicly that he will not vote for the Republican nominee for Governor. That nominee, Dan Cox, is a supporter of Donald Trump.

“Dan Cox …is a QAnon whack job who was in favor of calling Mike Pence, my friend, a traitor, when they were talking about hanging him,” Hogan said at a news conference on July 19.

Attorney and former prosecutor Glenn Ivey defeated former Congresswoman Donna Edwards in a primary to replace Anthony Brown in Maryland’s 4th district. Ivey is all but certain to be elected to Congress in such a blue district.

Lauren Victoria Burke is an independent investigative journalist and the host of the podcast BURKEFILE. She is a political analyst who appears regularly on #RolandMartinUnfiltered. She may be contacted at LBurke007@gmail.com and on twitter at @LVBurke

Continue Reading

#NNPA BlackPress

DOJ Indicts Four Police Officers Who Allegedly Lied to Secure Search Warrants for Breonna Taylor’s Home

NNPA NEWSWIRE — “Breonna Taylor should have awakened in her home, as usual, on the morning of March 13, 2020. Tragically, she did not. She was just 26 years old. As Attorney General Garland just stated, today’s indictments allege that Louisville Police Detective Joshua Jaynes and Sergeant Kyle Meany drafted and approved what they knew was a false affidavit to support a search warrant for Ms. Taylor’s home. That false affidavit set in motion events that led to Ms. Taylor’s death when other LMPD officers executed that warrant,” said Assistant Attorney General Kristen Clarke on August 4. 

Published

on

By Lauren Victoria Burke, NNPA Newswire Contributor

Tamika Palmer, Breonna Taylor’s mother, has long been insisting that Louisville police have never been at her daughter Breonna Taylor’s apartment on the night they shot her dead.

On August 4, the Department of Justice, led by the Attorney General and Assistant Attorney General for the Civil Rights Division Kristen Clarke, announced the indictments of four police officers who fatally shot Ms. Taylor during a nighttime raid on her apartment.

They asserted that the officers lied in order to get a search warrant for Taylor’s apartment.

The Justice Department announced that the indictments against the four current and former police officers would include federal charges of using “unconstitutionally excessive force.”

“Breonna Taylor should have awakened in her home, as usual, on the morning of March 13, 2020. Tragically, she did not. She was just 26 years old. As Attorney General Garland just stated, today’s indictments allege that Louisville Police Detective Joshua Jaynes and Sergeant Kyle Meany drafted and approved what they knew was a false affidavit to support a search warrant for Ms. Taylor’s home. That false affidavit set in motion events that led to Ms. Taylor’s death when other LMPD officers executed that warrant,” said Assistant Attorney General Kristen Clarke on August 4.

“The Fourth Amendment of the Constitution ensures that people are subject to searches only when there is probable cause supporting a search warrant. Falsified warrants create unnecessary hazards for the public and for the police, who rely on facts that fellow officers report in carrying out their public duties,” Clarke added.

“These charges focus on the conduct of the Louisville Metro Police Department’s Place-Based Investigations Unit. In the first indictment filed today, we allege that in early 2020, that unit was investigating suspected drug trafficking in the West End [area] of Louisville. On March 12, 2020, officers from that unit sought 5 search warrants they claimed were related to the suspected drug trafficking.  Four of those warrants targeted properties in the West End where that activity was allegedly occurring,” said Attorney General Merrick Garland before Clarke spoke.

Lauren Victoria Burke is an independent investigative journalist and the host of the podcast BURKEFILE. She is a political analyst who appears regularly on #RolandMartinUnfiltered. She may be contacted at LBurke007@gmail.com and on twitter at @LVBurke

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