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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

6 years ago

April 10, 2020

Oakland Post

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.

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Michael: The King of Pop’s Story Returns to the Big Screen

BLACKPRESSUSA NEWSWIRE — The curtain has finally lifted on one of Hollywood’s most anticipated films. Lionsgate has unveiled the official trailer and release date for “Michael,” the sweeping biopic about Michael Jackson that has been years in the making.

Published

1 week ago

November 6, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

The curtain has finally lifted on one of Hollywood’s most anticipated films. Lionsgate has unveiled the official trailer and release date for “Michael,” the sweeping biopic about Michael Jackson that has been years in the making. Directed by Antoine Fuqua, the film will arrive in theaters on April 24, 2026, with the singer’s nephew, Jaafar Jackson, stepping into the spotlight to portray his legendary uncle.

The trailer wastes no time rekindling the aura of Jackson’s genius. Opening with a studio scene between Jackson and his longtime producer Quincy Jones, played by Kendrick Sampson, the clip builds from a quiet, familiar rhythm to the electrifying pulse of “Wanna Be Startin’ Somethin’.” Viewers catch glimpses of the singer’s childhood, flashes of “Thriller,” and the silhouette that redefined pop culture. Each frame reminds fans of why Jackson remains unmatched in artistry and influence. The cast surrounding the late pop king’s nephew, Jaafar Jackson, reads like a who’s who of Black entertainment and music history. Colman Domingo plays Joe Jackson, Nia Long portrays Katherine Jackson, and Larenz Tate takes on the role of Motown founder Berry Gordy. Laura Harrier portrays music executive Suzanne de Passe, while Kat Graham embodies Diana Ross. Miles Teller plays attorney John Branca, a towering entertainment lawyer and longtime Jackson confidant who later became co-executor of his estate. The film’s journey to release has been as complicated as the icon it portrays. Production wrapped in 2024, but legal hurdles over depictions of past controversies forced extensive reshoots and editing delays. Even so, Fuqua’s film now appears ready to reclaim the narrative, focusing on Jackson’s creative ambition and humanity beyond tabloid noise. IndieWire reported that the film had faced “a massive legal snafu” over a disputed storyline but was retooled to center the music and legacy that defined generations.

Maven. Photo Credit: Glen Wilson

“Michael” promises more than a chronological retelling. It aims to explore how a child star from Gary, Indiana, became the world’s most influential entertainer. The script, written by Oscar-nominated John Logan, traces Jackson’s early years with the Jackson 5 through the triumphs and isolation of global superstardom. With Fuqua’s cinematic eye and producer Graham King—who brought “Bohemian Rhapsody” to life—joining forces with estate executors Branca and John McClain, the film is positioned as both a tribute and a restoration of Jackson’s cultural truth. Branca’s work behind the scenes has long shaped Jackson’s posthumous success. After the singer died in 2009, Branca and McClain took control of the estate burdened by debt and turned it into a global powerhouse worth billions. Under their stewardship, Jackson’s projects have generated more than $3 billion in worldwide ticket sales and landmark deals, including a $600 million joint venture with Sony earlier this year. At its heart, though, “Michael” is a story about artistry that transcends scandal. It offers a reminder that, despite the noise surrounding his life, Jackson’s music still bridges continents and generations. The trailer’s closing moments capture that spirit. As the beat of “Billie Jean” swells and Jaafar Jackson moonwalks into a spotlight, audiences are left with a familiar feeling—the awe of witnessing something timeless return home.

“Michael” opens worldwide in theaters April 24, 2026. See the official trailer here.

Stacy M. Brown

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Donald Trump Is the Biggest Loser

BLACKPRESSUSA NEWSWIRE — The Trump Brand took a significant hit as it was swept up in the Democratic blue wave of the election last night.

Published

1 week ago

November 5, 2025

Oakland Post

By April Ryan

The Trump Brand took a significant hit as it was swept up in the Democratic blue wave of the election last night.

Chris Jones, Democratic candidate for U.S. House of Representatives (AR-02), says, “Last night was electric, and it was unquestionably a wave.” Democrats won big in what is widely considered a repudiation of Trump’s 9 months at the White House in his second term.

In the state of Virginia, which produced the first big election night win and saw the election of the first woman governor, Democrat Abigail Spanberger, 56% of Virginia’s residents disapprove of President Trump. In New Jersey, 55% of state residents disapprove of the president; in New York, 69% disapprove; and in California, 63% disapprove of the president. The Trump brand or his support for any candidates did nothing to benefit those he endorsed in this election. They actually lost in each race he publicly put his name behind. Trump endorsed former New York Democratic Governor Andrew Cuomo, who lost the New York mayor’s race in his run as an independent. And New Jersey Republican Jack Ciattarelli, who ran for governor with the presidential endorsement, also lost his prospective race.

The next question is, will the democratic momentum be sustainable? Jones further explained, “This can become a 2026 tsunami, but turning a wave into a tsunami takes energy. A lot of energy. It doesn’t just happen. The conditions are there. Now we have to work!”

Some Democrats would argue that the work is already underway. The pushback against Trump’s national redistricting efforts received a thumb in the eye from California voters. Prop 50, California Governor Gavin Newsom’s counterbalance to President Trump’s redistricting efforts, passed in California last night. Although Trump’s name was not on the ballot last night, his Republican policies were. The United States has now entered the longest government shutdown in its history. Forty-two million Americans are not getting SNAP benefits. Economists are acknowledging that the government shutdown is contributing to the rise in delinquent debt in the student loan, automotive, and credit card industries. These items are among the negatives Americans are protesting against.

Compounding Trump’s political problems is a tariff battle that’s directly impacting pocketbooks. The day after the elections, the Trump administration was arguing before the US Supreme Court in favor of the president’s tariff powers. Meanwhile, President Trump‘s poll numbers are underwater, standing at a 37% national disapproval rate

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Historic Beatdown: Democrats Sweep Virginia as Speaker Don Scott and Jay Jones Make History

BLACKPRESSUSA NEWSWIRE — In a clear rejection of the policies of President Donald Trump, history repeated itself in Virginia.

Published

2 weeks ago

November 5, 2025

Oakland Post

By Lauren Burke

In a clear rejection of the policies of President Donald Trump, history repeated itself in Virginia. Democrats once again swept all three statewide offices as they did in 2017 during Trump’s first term. Abigail Spanberger easily won the office of Governor, and State Senator Ghazala Hashmi won her race over John Reid to be the next Lieutenant Governor. The victories occurred against the backdrop of a historic win in Virginia by Spanberger that will give Virginia its first woman Governor.

Spanberger’s widely predicted win over Republican gubernatorial nominee Winsome Earle-Sears was called 17 minutes after the polls closed in Virginia at 7 pm. Former Delegate Jay Jones won his race against incumbent Attorney General Jason Miyares. His victory means Jones will be the first Black Attorney General in Virginia’s history. Jones’ win was particularly noteworthy since the last month of his campaign was consumed by the issue of private text messages from 2022 to Republican Delegate Carrie Coyner. Republicans ran a non-stop barrage of negative ads against Jones for a month.

Del. Coyner lost her bid for re-election to Delegate-elect Lindsey Dougherty. The Dougherty race was the number one target for House Speaker Don Scott and his campaign lieutenant, Delegate Dan Helmer. Coyner’s defeat was one of at least 13 victories for Democrats who have now added to their ranks in the Virginia House to historic margins. When the Virginia General Assembly returns to session in January, there will be at least 64 Democrats in the chamber. The widespread Republican defeat is a testament to a combination of historic fundraising, Democrats running in all 100 seats, dislike of President Trump’s policies, and an ineffective top of the ticket featuring Lt. Gov. Earle Sears.

+13: Speaker Scott and Del. Helmer Hit Historic Numbers in Fundraising and Power

As the evening ended, a glaring historic fact became clearer: The Virginia House of Delegates will expand to a historic number. The change means the largest Democratic House chamber in the modern era. There were several notable wins by Democrats running for the Virginia House. They include Virgil Thornton, Lilly Franklin, and Kim Pope Adams. Speaker Don Scott and his campaign chair, Dan Helmer, undertook a record fundraising effort never before seen in Virginia’s history. The moment of success for Virginia Democrats will be viewed as a positive signal for Democrats moving into the 2026 elections.