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About The skanner. (Portland, Or.) 1975-2014 | View Entire Issue (May 16, 2012)
Opinion Banking on Good Practices “Challenging People to Shape a Better Future Now” B ERNIE F OSTER Founder/Publisher B OBBIE D ORE F OSTER Executive Editor T ED B ANKS Advertising Manager J ERRY F OSTER Account Executive L ISA L OVING News Editor H ELEN S ILVIS Multimedia Editor D AVID K IDD Graphic Designer M ONICA J. F OSTER Seattle Office Coordinator J ULIE K EEFE S USAN F RIED Photographers B ack in the day, the music of James Brown prompted many listeners to tap a toe or two. One particular JB song, “There was a time,” is as relevant today as it was before – particular- ly when it comes to how Ameri- ca’s banks changed over the years. There indeed was a time when bank profitability was derived from its investments in communi- ties and neighborhoods. There was also a time when many people believed that banks would treat them fairly. Just as James Brown passed on, so did many of the banking prac- tices of yesteryear. Today’s bank customers often harbor a deep and broad resentment as to how these institutions operate. Perhaps a new research report on credit cards from the Center for Responsible Lending (CRL) will enlighten and encourage those now leading our financial institutions to change their ways again. Predatory Credit Card Lending, the latest research from CRL, finds that bank prac- tices that benefited consumers also enhanced financial stability. Con- versely, financial institutions R ESPONSIBLE L ENDING Charlene Crowell focused on maximizing short-term gains through deceptive terms and penalty fees wound up being more financially at-risk. The report states in part, “Preda- CRL examined prevalent mar- keting and pricing practices before the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) took effect. The analysis of the connection between credit card practices and actual company performance dur- ing the recent economic downturn was based on data from the top ‘This study shows that measures to stop deceptive and unfair lending practices promote market transparency and enhance the health of lenders –and the economy – in the long term’ tory products seemed profitable in the short term and seemed to help fuel economic growth; but led to a disproportionate escalation in losses when housing markets slowed and the economy soured. Our new research shows this has also been true in the credit card arena.” 100 credit card issuers. After tracking credit losses from 2006 through 2010, CRL found: · Credit card issuers that engaged in a deceptive or abusive tactic tended to have multiple offenses; · The larger the financial institu- tion was that was engaged in these misleading practices, the worse their practices tended to be. · In general, regional or smaller banks and credit unions tended to have clearer and fairer pricing; and · Common sense curbs on abu- sive lending benefit everyone — customers, investors, shareholder and ultimately taxpayers. These findings also suggest that despite current efforts to weaken or dismantle the Consumer Finan- cial Protection Bureau, the public and private sectors would be well- served by more and better policing of credit cards and other forms of predatory lending such as over- draft and payday loans. High-cost penalty fees and rising interest rates became the risk, instead of mitigating it, according to CRL. The report concludes, “This study shows that measures to stop deceptive and unfair lend- ing practices promote market transparency and enhance the health of lenders –and the econo- my – in the long term.” There was a time when bankers understood that taking care of its customers was just good business. High-Speed Broadband: Access and Jobs The Skanner Newspaper, established in October 1975, is a weekly publica- tion, published each Wednesday by IMM Publications Inc., 415 N. Killingsworth St., P.O. Box 5455, Portland, OR 97228. Telephone (503) 285-5555. E-mail: info@theskanner.com World Wide Web site: http://www.theskanner.com Fax: (503) 285-2900 The Skanner is a member of the National Newspaper Pub lishers Associ- ation and West Coast Black Pub lishers Association. All photos submitted become the “M illions being left out of jobs, left out of digital learning, is not just an eco- nomic issue; it’s a civil rights issue” – FCC Chairman, Julius Genachowski An after school and summer camp STEM Academy run by the Urban League of Greater Chattanooga has increased students’ proficiency in both math and reading by 32 percent. In Cen- tral Florida, 70 percent to 80 percent of students who enter the local Urban League’s Center for Workforce Innova- tion Job Training Program graduate with a job at the end of the program. These rare success stories demonstrate that we know what works in the critical effort to increase broadband access and digital lit- eracy throughout America. But these stories take that goal one step further. property of The Skanner. We are not re - spon sible for lost or damaged photos either solicited or unsolicited. © 2012 The Skanner. ALL RIGHTS RE SERVED. REPRODUCTION IN WHOLE OR IN PART WITHOUT PERMISSION PROHIBITED. To see The Skanner News on your smart phone go to theskannermobile.com or scan this QR code with your app. • • • • • • • • Local news Opinions Jobs, Bids Sports Entertainment Music reviews Bulletin board RSS feeds T O B E E QUAL Marc Morial Page 4 The Portland Skanner May 16, 2012 and the kind of hands on management support for start-up businesses that is being offered at the nine National Urban League Entrepreneurship Centers around the country. Read the rest online at www.theskanner.com Job Competitiveness.” The report reveals that while the gap is narrowing, the broadband adoption rate in African American households is still only 56 percent compared with 67 per- cent for Whites. That gap widens notice- ably, however, among those without a high school diploma. The rate of broad- band access for African Americans with- out a high school degree is 38 percent, while 51 percent of Whites in that same category are online at home. With almost all major companies now posting job openings exclusively online, 77 percent of African Americans with- out high school diplomas used the Internet to look for a job during 2009- 2010. Clearly, we must target low-income com- munities in our efforts to expand access to both broadband and jobs. We applaud efforts like the FCC’s “Connect to Compete” program that is offering low-cost broadband connections in low- income communities. But more must be done to close the gap and to tackle the significant under-representation of African Americans in broadband jobs and businesses. Our “Connecting the Dots” report is a collection of practical ideas that bring together all the elements for success, including workforce train- ing, private enterprise development, and modernizing the STEM education pipeline. We recommend: Creating workforce training in broad- band sectors that incorporate job place- ment – like the successful Central Florida Workforce Innovation Job Train- The rate of broadband access for African Americans without a high school degree is 38 percent, while 51 percent of Whites in that same category are online at home With broadband access much too low and joblessness much too high in com- munities of color, these Urban League programs make the powerful link between broadband access and jobs. It’s not enough to place the Internet at everyone’s fingertips, we believe that real progress will only occur if the digi- tal divide is closed in a way that enhances employment opportunities for communities hardest hit by the recession and the jobless recovery of the last few decades. Last week the National Urban League’s Policy Institute in partnership with Time Warner Cable, highlighted that reality with the release of a report titled, “Connecting the Dots: Linking Broadband Adoption to Job Creation and ing program. Increasing broadband businesses in economically hard hit areas. Strategies might include fast-tracking approvals for broadband businesses that are willing to move into hard-hit areas
