Connect with us

Op-Ed

Financial Predators Still Target Active Duty Military

Published

on

Charlene-Crowell14
By Charlene Crowell
NNPA Columnist

 

The men and women who wear our nation’s uniform are expected to defend our nation at home and abroad. Yet, when it comes to financial services, service members are not always been protected in return.

The 2006 Military Lending Act (MLA) was enacted with broad and bipartisan support as a remedy to predatory lending that diminished military readiness. The first major step to provide financial protection to our armed forces was to limit interest rates and fees to no more than 36 percent rate cap for consumer credit. This rate cap initially applied to just three types of products: tax refund loans, and both payday and auto title loans. The law also prescribed limits of indebtedness for payday loans less than 90 days and auto title loans with terms less than 180 days.

MLA’s specific lending prescriptions had the unexpected result of lenders changing loan terms beyond the MLA’s provisions, sometimes by as little as an extra day. While technically observing the letter of the law, these profiteers exploited a lending loophole to continue entrapping active duty service members in predatory lending products.

Last fall, the Department of Defense (DOD) proposed MLA broaden proposed amendments to existing regulations that would better ensure against evasive practices of predatory lending. These proposals are supported by the military community, Congressional leaders, state attorneys general as well as consumer and civil rights groups across the country.

Even so, this year some members of Congress inserted into the 2016 National Defense Authorization Act a short clause that would have given predatory lenders the opportunity to prolong their exploitative practices and also delay in implementing new regulations by the Secretary of Defense. The surprise move also undermined DOD’s previous findings that predatory lending is a threat to our national security.

Fortunately, and largely through the leadership of a veteran, Illinois’ Congresswoman Tammy Duckworth, offered an amendment to the proposed authorization to preserve DOD’s regulatory plans. After 18 hours of debate, enough support was gathered to remove the harmful language.

A 32-30 vote by the House Armed Services Committee removed the harmful language as the measure proceeds to the House floor for a final vote. The Duckworth amendment will enable stronger regulation to move forward. The goal of ensuring effective regulation of predatory lending aimed at active duty military families and will include new safeguards affecting credit cards, high-cost installment loans and payday loans offered by banks that are termed ‘deposit advances.’

Observed Congresswoman Duckworth, “As the Department of Defense and Consumer Financial Protection Bureau’s own reports show, service members have not been fully protected since the MLA was passed, and further delay will put more service members and their families in harm’s way.”

Working with the Office of Service Member Affairs, CFPB published a December report that found:

* Some depository institutions extended millions of dollars in deposit advances to service members with APRs that typically exceeded 300 percent. As open-ended lines of credit, the loans were not bound by the MLA;

* In Illinois, a 12-month auto title loan of $2,575 carried a finance charge of $5,720 plus a $95 lien fee. The loan was technically legal because its duration was beyond 181 days;

* In Texas, a lender sold a $485 installment loan to a service member with a 584.72 APR for a period of less than six months. In addition to the borrower’s $1,428 repayment, the borrower was charged a separate credit access business fee and 9.75 percent interest on the loan.

“The products that have been marketed and extended to service members while the current Military Lending Act regulations have been in place underscore the limitations of those regulations in protecting service members and their families across the credit marketplace,” states CFPB’s report. “This issue is of substantial concern to the Bureau and we will continue to use the tools available to us to address the consumer financial challenges affecting the military community.”

Added Congresswoman Duckworth. “Service Members continue to be vulnerable to abusive lending that causes incredible financial difficulty for them and directly impacts military readiness. Those who work every day to defend our nation deserve the strongest protections our government can provide.”

Rep. Duckworth and other members of the House Armed Services Committee who worked to stop the ploy to delay financial protections for our troops did the right thing at the right time.

 

Charlene Crowell is a communications manager 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. Required fields are marked *

Commentary

California Respects the Power of Your Vote

As California Secretary of State, I do not take the progress we have made over the years lightly. My staff and I hold sacred the obligation to ensure that our elections are safe, free, fair, and accessible to all. Therefore, before certifying the results for this year’s election on Dec. 13, we have taken a number of steps to ensure that every vote is counted. We have also made sure that our ballot counting process is credible and free from interference.  

Published

on

Shirley N. Weber, Ph.D., California Secretary of State. Courtesy of California Secretary of State Office.
Shirley N. Weber, Ph.D., California Secretary of State. Courtesy of California Secretary of State Office.

By Shirley N. Weber, Ph.D.,
California Secretary of State

Californians can confidently claim this: California has made more significant reforms to our election laws and expanded voting rights than any other state.

The relevance of this accomplishment deepens as we prepare to celebrate the 60th anniversary of the Voting Rights Act next year. This landmark legislation began to undo our country’s long history of voter suppression, intimidation, and disenfranchisement that far too many Americans experienced at the polls for decades.

My own parents, who were sharecroppers, were denied their right to vote in the Jim Crow era South. Before moving to Los Angeles from Hope, Arkansas, my parents, David and Mildred Nash, could not vote. My father was an adult with six children before he registered to vote and was only able to exercise that constitutional right for the first time here in California.

As California Secretary of State, I do not take the progress we have made over the years lightly. My staff and I hold sacred the obligation to ensure that our elections are safe, free, fair, and accessible to all.

Therefore, before certifying the results for this year’s election on Dec. 13, we have taken a number of steps to ensure that every vote is counted. We have also made sure that our ballot counting process is credible and free from interference.

To meet that deadline without a hitch, California requires elections officials in all 58 counties to turn in their official results by a certain date. This year, that date was Dec. 6.

By law, every eligible voter in our state receives a vote-by-mail ballot. This ensures all registered voters can exercise their right to vote.

Whether you placed your ballot in a designated drop-off box, voted by mail, or cast your ballot at a polling center, votes are safe and secure. And we allow voters to sign up to receive text message, email, or voice call notifications about the status of their own ballots by using the Where’s My Ballot? tool. To learn more or to sign up, paste this URL in your web browser: https://california.ballottrax.net/voter/

The ballots of Californians who voted by mail are also protected. The United States Postal Service partners with the State to make sure ballots are delivered on time. All mailed-in ballots are sent by First Class mail with a postage paid envelope provided to every eligible registered voter.

Election Security is our No. 1 priority. That’s why my office designed and implemented a program to back up that commitment.  For more information, visit this URL: https://www.sos.ca.gov/elections/election-cybersecurity

Additionally, California takes preventive actions to make sure our voting technology keeps our elections safe and protects everyone’s votes.

For example, county voting systems are not connected to the internet, which protects them from cyberthreats. The State also performs regular and rigorous testing to make sure the voting systems are working optimally, and only authorized personnel are granted access.

Staff members are also given phishing and cybersecurity training.

VoteCal, the state’s centralized voter registration system, is also key. The system is regularly updated, and it is used as a resource for counties to verify voter signatures.

California also provides security at all counting locations and makes sure ballot drop-off boxes are secured and monitored.

And all election processes are open to observation during specified hours.

In my role as Secretary of State of California, there is nothing more important to me than defending our democracy.

I am committed to safeguarding voting rights, and to leading our state in upholding the highest democratic standards by implementing policies and practices that Californians and all Americans can trust and look to for instruction and hope.

You can contact the California Office of the Secretary of State at 1-800-345-Vote or elections@sos.ca.gov with inquiries or to report suspected incidents or irregularities. Additional information can be found at www.sos.ca.gov and the office’s social media platforms: 

Instagram: @californiasos_
Facebook: Facebook.com/CaliforniaSOS
X: @CASOSVote

Continue Reading

Activism

COMMENTARY: PEN Oakland Entices: When the News is Bad, Try Poetry

Strongman politics is not for the weak. Here in the U.S., Donald Trump is testing how strongman politics could work in the world’s model democracy.

Published

on

iStockphoto.
iStockphoto.

By Emil Guillermo

As the world falls apart, you need more poetry in your life.

I was convinced on Tuesday when a weak and unpopular president of South Korea — a free nation U.S. ally — tried to save himself by declaring martial law.

Was it a stunt? Maybe. But indicative of the South Korean president’s weakness, almost immediately, the parliament there voted down his declaration.

The takeaway: in politics, nothing quite works like it used to.

Strongman politics is not for the weak. Here in the U.S., Donald Trump is testing how strongman politics could work in the world’s model democracy.

Right now, we need more than a prayer.

NEWS ANTIDOTE? LITERATURE

As we prepare for another Trump administration, my advice: Take a deep breath, and read more poetry, essays and novels.

From “Poetry, Essays and Novels,” the acronym PEN is derived.

Which ones to read?

Register (tickets are limited) to join Tennessee Reed and myself as we host PEN OAKLAND’s award ceremony this Saturday on Zoom, in association with the Oakland Public Library.

Find out about what’s worth a read from local artists and writers like Cheryl Fabio, Jack Foley, Maw Shein Win, and Lucille Lang Day.

Hear from award winning writers like Henry Threadgill, Brent Hayes Edwards and Airea D. Matthews.

PEN Oakland is the local branch of the national PEN. Co-founded by the renowned Oakland writer, playwright, poet and novelist Ishmael Reed, Oakland PEN is special because it is a leader in fighting to include multicultural voices.

Reed is still writing. So is his wife Carla Blank, whose title essay in the new book, “A  Jew in  Ramallah, And Other Essays, (Baraka Books), provides an artist’s perspective on the conflict in Gaza.

Of all Reed’s work, it’s his poetry that I’ve found the most musical and inspiring.

It’s made me start writing and enjoying poetry more intentionally. This year, I was named poet laureate of my small San Joaquin rural town.

Now as a member of Oakland PEN, I can say, yes, I have written poetry and essays, but not a novel. One man shows I’ve written, so I have my own sub-group. My acronym: Oakland PEOMS.

Reed’s most recent book of poetry, “Why the Black Hole Sings the Blues, Poems 2007-2020” is one of my favorites. One poem especially captures the emerging xenophobia of the day. I offer you the first stanza of “The Banishment.”

We don’t want you here
Your crops grow better than ours
We don’t want you here
You’re not one of our kind
We’ll drive you out
As thou you were never here
Your names, family, and history
We’ll make them all disappear.

There’s more. But that stanza captures the anxiety many of us feel from the threat of mass deportations. The poem was written more than four years ago during the first Trump administration.

We’ve lived through all this before. And survived.

The news sometimes lulls us into acquiescence, but poetry strikes at the heart and forces us to see and feel more clearly.

About the Author

Emil Guillermo is a journalist and commentator. Join him at www.patreon.com/emilamok

Continue Reading

Bay Area

In the City Attorney Race, Ryan Richardson Is Better for Oakland

It’s been two years since negotiations broke down between the City of Oakland and a developer who wants to build a coal terminal here, and the issue has reappeared, quietly, in the upcoming race for Oakland City attorney. Two candidates are running for the position of Oakland City Attorney in November: current Assistant Chief City Attorney Ryan Richardson and retired judge Brenda Harbin-Forte.

Published

on

Members of Oaklanders Defending Democracy political action committee with Oakland Mayor Sheng Thao, center. Courtesy photo.
Members of Oaklanders Defending Democracy political action committee with Oakland Mayor Sheng Thao, center. Courtesy photo.

By Margaret Rossoff

Special to The Post

OPINION

It’s been two years since negotiations broke down between the City of Oakland and a developer who wants to build a coal terminal here, and the issue has reappeared, quietly, in the upcoming race for Oakland City attorney.

Two candidates are running for the position of Oakland City Attorney in November: current Assistant Chief City Attorney Ryan Richardson and retired judge Brenda Harbin-Forte.

Richardson has worked in the Office of the City Attorney since 2014 and is likely to continue current City Attorney Barbara Parker’s policies managing the department. He has committed not to accept campaign contributions from developers who want to store and handle coal at a proposed marine terminal in Oakland.

Retired Judge Harbin-Forte launched and has played a leading role in the campaign to recall Mayor Sheng Thao, which is also on the November ballot.  She has stepped back from the recall campaign to focus on her candidacy. The East Bay Times noted, “Harbin-Forte’s decision to lead the recall campaign against a potential future client is … troubling — and is likely to undermine her ability, if she were to win, to work effectively.”

Harbin-Forte has refused to rule out accepting campaign support from coal terminal interests or their agents. Coal terminal lobbyist Greg McConnell’s Independent Expenditure Committee “SOS Oakland” is backing her campaign.

In the 2022 mayor’s race, parties hoping to build a coal terminal made $600,000 in contributions to another of McConnell’s Independent Expenditure Committees.

In a recent interview, Harbin-Forte said she is open to “listening to both sides” and will be “fair.” However, the City Attorney’s job is not to judge fairly between the City and its legal opponents – it is to represent the City against its opponents.

She thought that the 2022 settlement negotiations ended because the City “rejected a ‘no coal’ settlement.” This is lobbyist McConnell’s narrative, in contrast to the report by City Attorney Barbara Parker. Parker has explained that the City continued to negotiate in good faith for a settlement with no “loopholes” that could have allowed coal to ship through Oakland – until would-be coal developer Phil Tagami broke off negotiations.

One of Harbin-Forte’s main priorities, listed on her website, is “reducing reliance on outside law firms,” and instead use the lawyers working in the City Attorney’s office.

However, sometimes this office doesn’t have the extensive expertise available that outside firms can provide in major litigation. In the ongoing, high stakes coal litigation, the City has benefited from collaborating with experienced, specialized attorneys who could take on the nationally prominent firms representing the City’s opponents.

The City will continue to need this expertise as it pursues an appeal of the judge’s decision that restored the developer’s lease and defends against a billion-dollar lawsuit brought by the hedge fund operator who holds the sublease on the property.

Harbin-Forte’s unwillingness to refuse campaign contributions from coal terminal interests, her opposition to using outside resources when needed, as well as her uncritical repetition of coal lobbyist McConnell’s claim that the City sabotaged the settlement talks of 2022 all raise serious concerns about how well she would represent the best interests of Oakland and Oaklanders if she is elected City Attorney.

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

Copyright ©2021 Post News Group, Inc. All Rights Reserved.