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Opinion u.S. Foreign Policy led to Border Crisis “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- By Bill Fletcher, Jr. NNPA Columnist I have been increasingly con- cerned by the near hysteria in connection with the Central American immigrant children who have attempted to enter the USA, fleeing from poverty, crime and violence. The political Right in the USA is trying to make this the defining moment in their attacks on the Obama administration, playing to the worst and most xenophobic sides of the U.S. pub- lic. The Obama administration, true to form, has done a very poor job in responding to this insanity. They have particularly avoided saying something that could change the entire tenor of the debate. It goes something like this. The immigration from Mexico and Central America cannot be understood outside of understand- ing U.S. foreign policy and, specifically, the relationship of the U.S. towards Mexico and Central America. Continuously, since the 19th century, the USA has inter- fered in the internal affairs of Latin America and the Caribbean. This has included direct invasions, e.g., the Dominican Republic in 1965; coups, e.g., the 1954 ouster of the Guatemalan President Arbenz; the promotion of insur- T RANS A FRICA Bill Fletcher Jr. gencies, e.g., the Contra war against the Sandinista government of Nicaragua; blockades, e.g., Cuba, Haiti (in the 1800s); and colonialism, e.g., Puerto Rico. As a result the entire region has been destabilized for more than a centu- ry. Added to that is that there exists a proliferation of U.S.-pro- must add the economic domina- tion of the region by the U.S. This, most notably, includes NAFTA which destroyed Mexican agriculture and resulted in a mass migration of Mexicans to the USA. In order to address immigration, we must come to terms with the role of the United States in Latin American and the Caribbean. We cannot continue to act as if there is no correlation. We cannot contin- ue to act as if the USA can avoid responsibility for the depth of the crises in these regions and simply say no to migration. Yet, this is what most of the Republican Party and many Democrats seem to want to do. In order to address immigration, we must come to terms with the role of the United States in Latin American and the Caribbean duced weaponry that has shifted, over time, from political battles to battles among and between vari- ous crime families. To all of this, of course, one None of this is to suggest that the immigration crisis lends itself to easy solutions. What it is to sug- gest, however, is that people would rather stay in their own countries as opposed to migrating. That means that the U.S. can and should provide the necessary sup- port to countries that are attempting to stabilize and grow. It should not be promoting or endorsing coups, as it did as recently as 2009 in the case of Honduras, or as it implies in its relationship to the Venezuelan opposition. It needs to be cooper- ating with the governments of Latin American and the Caribbean on the basis of mutual respect rather than imposing what it sees as solutions, a factor that has con- tributed to the near civil war situation involving criminal gangs in Mexico. While the U.S. political elite, and much of our population, would rather forget history and ignore the role of the USA in the crimes against the peoples of Latin America and the Caribbean, if we want solutions, we need to bite the bullet, so to speak, and come to terms with our own role. There actually is no alternative. Bill Fletcher, Jr. is a racial jus- tice, labor and global justice writer and activist. He is a Senior Scholar with the Institute for Poli- cy Studies. Follow him on Facebook and at www.billfletcher- jr.com. Consumer Finance Protection Bureau 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 property of The Skanner. We are not re - spon sible for lost or damaged photos either solicited or unsolicited. © 2014 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 By Charlene Crowell NNPA Columnist S ens. Elizabeth Warren and Jeff Merkley championed creation of CFPB to curb financial sector abuses For the second time in as many years, the Consumer Financial Protection Bureau (CFPB) has fined a major payday lender. On July 10, Director Richard Cordray announced that one of the nation’s largest payday lenders, ACE Cash Express, will pay $10 million in restitution and penalties for direct- ing its employees to “create a sense of urgency” when contact- ing delinquent borrowers. This abusive tactic was used to perpet- uate the payday loan debt trap. CFPB has ordered ACE Cash Express to provide consumers with $5 million in refunds and the same amount in penalties for its violations. The firm operates in 36 states and in the District of Columbia with 1,500 storefronts, 5,000 associates and online loans. “We believe that ACE’s aggres- sive tactics were part of a culture of coercion aimed at pressuring payday borrowers into debt traps,” said Cordray. “Our investigation uncovered a graphic in ACE’s training manual that lays out a step-by-step loan and collection process that can ensnare con- sumers in a cycle of debt. When borrowers could not pay back their loans, ACE would subject them to illegal debt collection threats and harassment.” Commenting on CFPB’s actions, Mike Calhoun, president of the Center for Responsible Lending, said, “This enforcement action also confirms what our research found long ago: payday Page 2 The Portland and Seattle Skanner July 23, 2014 R ESPONSIBLE L ENDING Charlene Crowell lenders depend on keeping vulner- able consumers trapped in an endless cycle of debt of 300-400 percent interest loans...It’s real, it’s abusive and it’s time to stop.” CRL research shows that payday loans drain $3.4 billion a year Last year, another large payday lender, the Fort Worth-based Cash America International, faced simi- lar enforcement actions when CFPB ordered it to pay $5 million in fines for robo-signing court documents submitted in debt col- lection lawsuits. Cash America also paid $14 million to con- sumers through one of its more than 900 locations throughout the United States, Mexico and the United Kingdom. On the same day that the CFPB’s enforcement action occurred, another key payday- related development occurred. ‘When borrowers could not pay back their loans, ACE would subject them to illegal debt collection threats and harassment’ from consumers. Further, CRL has long held that the payday industry preys on customers who cannot repay their loans. Now, with CFPB releasing an item from ACE Cash Express’ training manual, that contention is proven to be true. The ACE graph- ic shows how the business model intends to create a debt cycle that becomes increasingly difficult to break and urges its associates to be aggressive. Across the country, the South has the highest concentration of payday loan stores and accounts for 60 percent of total payday lending fees. Missouri is the only state outside of the South with a comparable concentration of pay- day stores. Missouri Gov. “Jay” Nixon vetoed a bill that purported to be payday reform. In part, Gov. Nixon’s veto letter states, “allow- ing payday lenders to charge 912.5 percent for a 14-day loan is not true reform...Supporters point to the prohibition of loan rollovers; but missing from the legislation is anything to address the unfortu- nately all-too-common situation where someone living paycheck- to-paycheck is offered multiple loans by multiple lenders at the same time or is encouraged to take out back-to-back loans from the same lender...This bill cannot be called meaningful reform and does not receive my approval.” Speaking in support of Gov. Nixon’s veto, Pastor Lloyd Fields of Kansas City added, “The faith community applauds Governor Nixon’s moral leadership in hold- ing lawmakers to a higher standard on payday lending reform. Missourians deserve noth- ing less.” On the following day, July 11, the Federal Trade Commission (FTC) fined a Florida-based pay- day loan ‘broker’ $6.2 million in ill-gotten gains. According to FTC, the firm falsely promised to help consumers get payday loans. After promising consumers to assist them in securing a loan in as little as an hour, consumers shared their personal financial data. How- ever that information was instead used to take money from con- sumers’ bank accounts and without their consent. Speaking on behalf of the FTC, Jessica Rich, director of FTC’s Bureau of Consumer Protection, said, “These defendants deceived consumers to get their sensitive financial data and used it to take their money. The FTC will contin- ue putting a stop to these kinds of illegal practices.” Looking forward, CFPB’s Cor- dray also sees a need to remain watchful of payday developments. “Debt collection tactics such as harassment and bullying take a profound toll on people – both financially and emotionally”, said Cordray. “The Consumer Bureau bears an important responsibility to stand up for those who are being wronged in this process.” Charlene Crowell is a communi- cations manager with the Center for Responsible Lending. She can be reached at Charlene.crowell@responsible- lending.org.
