Opinion
Dems ‘Ain’t Loyal’ to Black Voters
“Challenging People to Shape
a Better Future Now”
B ERNIE F OSTER
Founder/Publisher
B OBBIE D ORE F OSTER
Executive Editor
J ERRY F OSTER
Advertising Manager
L ISA L OVING
News Editor
H ELEN S ILVIS
Multimedia Editor
P ATRICIA I RVIN
D AVID K IDD
Graphic Designer
M ONICA J. F OSTER
Seattle Office Coordinator
J ULIE K EEFE
S USAN F RIED
Photographers
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.
R
ev. Jamal Bryant of Balti-
more was widely criticized
recently for quoting a line
from a popular Chris Brown song:
“Hoes Ain’t Loyal.” Bryant could
have avoided controversy – and
been on point – if he had instead
said, “Democrats ain’t loyal.”
They ain’t, to borrow the ver-
nacular.
Although people of color com-
prised 45 percent of Democratic
voters in 2012, less than 2 percent
of the $1.1 billion collected over a
4-year period by the three primary
Democratic fundraising commit-
tees went to candidates of color –
defined as U.S. residents who are
African American, Latino, Asian
American or Pacific Islander, or
Native American – according to
the “2014 Fannie Lou Hamer
Report” by PowerPAC+, a nation-
al advocacy organization that
helps elect progressives to office
by building on the political power
of the multiracial majority in
America.
Actually, the Minority Business
Enterprise figures are even smaller
than reported because the study
counted any firm that had a person
of color as a principal owner, not
the more commonly accepted def-
inition requiring that they be the
majority owner.
The research was compiled from
Federal Election Commission
reports filed by the three largest
Democratic fundraising commit-
tees: the National Democratic
Committee, the Democratic Con-
gressional Campaign Committee
and the Democratic Senatorial
Campaign Committee.
“Even amidst the massive infu-
sion of ‘outside’ money, the
Democratic Party remains the
disbursed by the Party.”
But few of those dollars found
T HE C URRY their way to people of color.
R EPORT
Overall, of 285 firms receiving
disbursements from the Democrat-
ic Party in the 2010 and 2012
George E.
election cycles, only 14 – or 4.9
Curry
percent – were MBE firms. Five of
the MBEs were polling firms,
three provided communications
services and six provided political
largest source of funds for Democ- strategy services or IT.
Among the 14 firms, four of
rats seeking office (other than the
Presidency ). Each cycle, the Party them received 87 percent of all
takes in hundreds of millions of dollars disbursed to MBEs. They
dollars and uses these funds to were, in order, Peter D. Hart
Associates,
Inc.,
provide the national electoral Research
infrastructure and support those of $2,206,772.50 (25 percent of all
MBE Research, dollars); SKD
the states,” the report stated.
It explained, “While most of the Knickerbocker, $2,138,671 (24
Among the study’s recommen-
dations:
• Conduct a disparity study to
diagnose the problem;
• Set goals for diversifying con-
tract awards;
• Make a plan to increase access
and capacity and
• Measure progress and hold deci-
sion-makers accountable.
In 2014, the Democratic Party
has no credible excuse for such
poor performance. Even with an
exaggerated definition of what
constitutes a Minority Business
Enterprise, Democrats fall short.
“… Today’s voter looks quite
different from the model voter of
even 50 years ago who was much
more likely to be male, have a job
‘People of color were 45 percent of Democratic voters in
2012, but less than 2 percent of the $1.1 billion collected
over a 4-year period by the three primary Democratic
fundraising committees went to candidates of color’
media attention falls on the mega-
donors who make significant
financial contributions to the
Democratic Party, in the aggre-
gate, small donors actually
contribute more to the Party’s
finances than do the mega-donors.
Indeed, donors who made contri-
butions of less than $200 provided
a full third of the Party’s financial
resources over the past two cycles,
having
donated
over
$371,345,529.”
According to the report, “Well
over half a billion dollars was
spent on these consultants over the
past two election cycles, an
amount that represents approxi-
mately half of the funds raised and
percent);
Brilliant
Corners
Research, Inc., $1,908,369.26 (22
percent) and Thoughtworks
($1,328,464.92).
Peter D. Hart, whose firm
received the most MBE dollars, is
a White male. Yet, highly-respect-
ed Black pollster Ronald L. Lester
received only $45,670.00 from the
Democratic Party, according to the
report. Brilliant Corners, headed
by Cornel Belcher, an African
American, was third among MBEs
with $1.9 million. Dewey Square
Group, with Minyon Moore,
African American, and Maria Car-
dona, a Latina, on its team
received only $81,054.73, or 0.9
percent of MBE dollars.
with a union that afforded him
time off to vote during the work
day, and have access to an array of
news sources that offered some
semblance of balanced reporting
on the candidates and their posi-
tions, among other things,” the
report stated. “Today, women,
especially those not married, form
a core part of the Democratic
Party’s base, as do Voters of Color.
To put it bluntly, these voters are
already the largest constituencies
within our Party, and their influ-
ence will only increase over the
coming decades.”
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Debt Settlement Programs are Misleading
Y
ou’ve probably heard the
advertisements on urban
radio urging consumers
with at least $10,000 in debt to call
a number right away for a finan-
cial rescue. Promising to end debt
troubles by getting creditors to
somehow accept less money than
what is owed can sound really
appealing. In reality, however,
consumers mired in debt may
often find debt settlement pro-
grams to be costly, misleading,
and far less helpful than the radio
ad promises.
In the newest chapter in the
research series titled The State of
Lending, the Center for Responsi-
ble Lending (CRL) finds that debt
settlement is a risky strategy that
can leave consumers more finan-
cially vulnerable and still laden
with debt years after they enroll in
such programs.
Regardless of how well con-
sumers follow the instructions of
their debt settlement firm, they
may ultimately be unsuccessful
because many creditors simply
refuse to deal with debt settlement
companies.
According to the report, “Debt
settlement companies do not tell
consumers whether creditors will
work with their firms at the time
of enrollment. However, even if
debt-settlement companies were
required to disclose whether a par-
ticular creditor routinely works
Page 2 The Portland and Seattle Skanner July 9, 2014
R ESPONSIBLE
L ENDING
Charlene
Crowell
with their firm, this provides no
real guarantee. In many cases, the
party who owns a debt changes
over time, since a debt may be
sold successively to multiple par-
ties.”
Available data suggests that at
least two-thirds of debts must be
sumers must typically be enrolled
in debt settlement plan for three to
four years in order to complete the
program. During this time, debt
balances grow an average 20 per-
cent while consumers wait for
settlements to be reached. Addi-
tionally, their credit scores are
negatively affected, financial
instability increased, and the like-
lihood of creditor lawsuits loom
near.
According to Leslie Parrish, co-
author of the report and deputy
research director at CRL, “When a
consumer stops making payments
on a debt, not only is she/he vul-
nerable to fees and an increased
‘Debt settlement companies do not
tell consumers whether creditors will
work with their firms’
settled in order to achieve a net
positive outcome from debt settle-
ment. Even more debts must be
settled for the consumer to achieve
real savings if they end up being
liable for taxes on the debt reduc-
tion.
In the end, many consumers
never realize that kind of experi-
ence. Rather, they end up worse
off financially. According to the
American Fair Credit Council, an
industry trade association, con-
interest rate, the reporting of this
delinquency to credit bureaus can
impact credit scores for years.”
In general, the higher a con-
sumer’s credit score is, the lower
the cost of credit they will incur.
Conversely, the lower one’s credit
score, the higher the cost of credit
and interest will be. Whether
applying for a credit card, auto
loan or a mortgage, bad credit his-
tories make future credit and
borrowing more expensive.
In 2010, the Federal Trade Com-
mission (FTC) issued regulation
that barred debt settlement compa-
nies from charging fees until they
reached settlements with the
client’s creditors. While this regu-
lation has stopped some of the
most egregious industry practices,
CRL’s report finds that significant
financial risks remain for debt set-
tlement clients.
Today, the Consumer Financial
Protection Bureau shares regulato-
ry oversight of debt settlement
with the FTC. Thus far, CFPB has
taken multiple enforcement
actions against several debt-settle-
ment companies and one payment
processor.
CRL also sees a role for states to
establish meaningful limits of debt
settlement fees. One recommenda-
tion is to limit the fees that can be
charged and to calculate such fees
on the basis of the amount of sav-
ings achieved for the consumer.
State and federal regulators
could also require better screening
of prospective customers to lower
the risk of a bad outcome. Factors
such as the amount of debt to be
enrolled, creditors and the con-
sumer’s financial circumstances
would be taken into account.
Ellen Harnick, co-author of the
report and senior policy counsel at
CRL, said, “What’s clear is that
more action is necessary to protect
consumers.”