California Payday Loans – Tinigard http://tinigard.info/ Sun, 26 Jun 2022 17:37:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://tinigard.info/wp-content/uploads/2021/05/default1-150x150.png California Payday Loans – Tinigard http://tinigard.info/ 32 32 Pine Nuts with McAvoy Layne: Failed Personal Finance Class | Carson City Nevada News https://tinigard.info/pine-nuts-with-mcavoy-layne-failed-personal-finance-class-carson-city-nevada-news/ Sun, 26 Jun 2022 17:37:25 +0000 https://tinigard.info/pine-nuts-with-mcavoy-layne-failed-personal-finance-class-carson-city-nevada-news/ Michigan is about to become the 14th state to mandate a personal finance course in high school, congratulations. I only wish we had a personal finance class when I was in high school. Left to my own devices, well, I poured every dollar I made as a lifeguard into my ’55 Chevy, even to the […]]]>

Michigan is about to become the 14th state to mandate a personal finance course in high school, congratulations. I only wish we had a personal finance class when I was in high school. Left to my own devices, well, I poured every dollar I made as a lifeguard into my ’55 Chevy, even to the point of driving to Mexico to have the seats rolled and tucked in Naugahyde. It cost a fortune, but oh, it looked boss!

However, a small problem arose as we drove home through the hot Southern California desert. I started to feel something that made my eyes water. I discovered, as my scent nodes swelled to the size of peaches, that they had stuffed my beautiful new upholstery with horse manure, something you could never detect except on a very hot day. .

I sold this car on the coldest day of the year to a classmate of mine who also needed a personal finance course. The one thing I took away from Ms. Mann’s home economics class was, “Never spend more than a quarter of your income on housing. That little piece has served me well over the years, but the days of you only spending a quarter of your income on rent are gone when rents are $2,500 a month here in Tahoe, and double that in New York if you can find an apartment.

A while ago I picked up some girls who were hitchhiking to the State Line for a night out. During their conversation, one of them asked the other, “Did you bring any money?”

” No you ? »
“Nope.”

These girls could have taken a course in personal finance, and maybe a course in sociology. My humble suggestion is, drop Shakespeare for Twain and drop algebra for personal finance. I never used algebra except to calculate how fast I needed to run to complete a marathon in under three hours. And I never used Shakespeare, except to confess to myself on occasion, as Caliban once did: “What a thrice-double ass I was.”

The advice I got from my dad, who was very good at managing money, was simply, “No, we can’t buy Buick taillights for your Chevy, son; Money doesn’t grow on trees.”

Kids graduating from high school today need to learn about cryptocurrencies, compound interest, and payday loans, not to mention the line on the game of the week.

When I was a lifeguard in Tahoe, life was good. I had my ’55 Chevy and a girlfriend who worked at Harrah’s and shared his generous take-out meals. This summer will never come back, neither for me nor unfortunately for anyone. Life is so much more complicated today. So, let’s include personal finance as a body to our high school curricula in this great country of ours, and provide our graduates with a more resourceful, successful, and stress-free future.

For over 30 years, in over 4,000 performances, columnist and Chautauquan McAvoy Layne has dedicated himself to preserving the spirit and wisdom of “The Wild Humorist of the Pacific Slope”, Mark Twain. As Layne says, “It’s like being a Monday-Friday preacher, whose sermon, though not reverently pious, is ardently American.”

Go here to listen to this and other columns from McAvoy Layne.

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Predatory lenders make money from rising gas and food prices https://tinigard.info/predatory-lenders-make-money-from-rising-gas-and-food-prices/ Thu, 23 Jun 2022 17:29:00 +0000 https://tinigard.info/predatory-lenders-make-money-from-rising-gas-and-food-prices/ Most want to avoid payday loans, which offer quick cash against future paychecks without a credit check and come with an interest rate of over 500%. But rapidly rising prices for food, fuel and rent leave them with few options. To predatory payday lenders, Nevertheless, they announce happy days and good times to come. “Low […]]]>

Most want to avoid payday loans, which offer quick cash against future paychecks without a credit check and come with an interest rate of over 500%. But rapidly rising prices for food, fuel and rent leave them with few options.

To predatory payday lenders, Nevertheless, they announce happy days and good times to come.

“Low unemployment and inflation generally mean that consumers may need loans to obtain additional capital to manage unexpected spikes and expenses while earning money to repay those loans,” David said. Fisher, CEO of the short-term subprime lender. Enova (ENV) said in an earnings call in May. The company beat quarterly earnings estimates by 7.7%.

Given the economic dynamics at play, Fisher said his company “significantly leaned into demand through our marketing efforts” and spent more to attract new customers. It paid off. About 44% of all loans went to new customers in the last quarter, he said.

This surge in new borrowers came as U.S. consumer inflation hit its highest level in more than four decades and Americans struggled to put food on their tables and gasoline in their tanks.

Work to get to work

The national average for a gallon of gas is just under $5, up 61% from last year. The jump comes as many employers require workers to return to work in person. The federal minimum wage, meanwhile, still sits at $7.25 an hour, where it has been since 2009. Low-wage workers must work for about 14 hours to fill their reservoir.
About two-thirds of Americans now live paycheck to paycheck, according to a June LendingClub survey. This figure jumps to 82% among workers earning less than $50,000.
The average credit score of low-income people in the United States is also falling, according to data from LendingClub. About 40% of Americans earning less than $50,000 and living paycheck to paycheck have a subprime credit score below 650, which prevents them from getting a loan from a traditional lending institution. or qualify for additional credits. credit. The average credit score in the United States is 714, according to Experian.

For these Americans, high interest payday loans are still readily available. These small loans, usually between $100 and $1,000, are available in more than half of lightly regulated US states. Proof of income and a bank account are all most borrowers need to walk out with cash in hand.

Current data that tracks the number of payday loans has yet to be released, but based on past trends, there’s likely an increase in borrowing, said Alex Horowitz, senior consumer finance project manager. from Pew. “Our survey data shows that approximately 70% of payday loan borrowers use the loan primarily for day-to-day expenses and to meet increased or volatile expenses.”

The debt trap

These loans are often incredibly expensive, but borrowers either don’t have the financial knowledge to research alternatives or don’t think they have any other option. There is currently no federal cap on maximum interest rates for small loans. Not all states allow them, and it is up to those states to decide whether they will implement their own caps.

In the 32 US states that allow payday loans, average annual interest rates range from 200% in Minnesota to 664% in Texas.
Borrowers often cannot repay the full loan amount when due, usually in two to four weeks, leading them to take out a second loan with additional fees. This creates a cycle of indebtedness that is difficult to break. Nearly 1 in 4 payday loan recipients take out additional loans nine or more times, the Consumer Financial Protection Bureau found.
Studies show that black and Latino communities are disproportionately targeted by high-cost loan providers. In Michigan, where the average payday loan interest rate is 370%, there are 7.6 payday stores per 100,000 people in areas with more than a quarter of the population black and of Latinos. That’s about 50% more than in other areas, according to data provided by the Center for Responsible Lending.

Companies that offer high-cost loans say they are providing a needed service to low-income communities by providing loans to Americans that traditional banks refuse to serve. They claim that high interest rates are necessary because of the high risk of default. But consumer advocates say it’s a false narrative.

Seven major U.S. banks, including Bank of America, Wells Fargo and Truist, have created programs that offer small-dollar borrowing options with low annual interest rates, Horowitz said. They plan to look at bank history — not credit scores — to determine who qualifies for loans.

“There are 18 states and the District of Columbia that have banned payday loans and have survived very well without these predatory loan products,” said Nadine Chabrier, senior policy adviser at the Center for Responsible Lending. “There are fair and responsible loan products that have low interest rates and fees that are available for people to use.”

Shortly after the Covid-19 pandemic hit the United States, the Consumer Financial Protection Bureau repealed significant parts of a 2017 rule that required lenders to assess consumers’ ability to repay their loans. The rule, they said, would have wiped out much of the money they make from borrowers who default on their loans. By repealing parts of the rule, the CFPB said it would ensure “the continued availability of low-cost loan products for consumers who demand them.”

In a blog post, former CFPB director Dave Ueijo expressed concern about the rule changes, saying he had issues with “any lender’s business model that relies on the inability of consumers to repay their loans.

Buy now pay later

Proponents are also concerned about new forms of lending that have emerged in recent years that are generally far less regulated than even payday loans.

According to the Center for Responsible Lending, Buy Now, Pay Later (BNPL) companies have seen their total market share increase by 200-350% over the past two years. Now, companies like Klarna and Zip are teaming up with Chevron and Texaco to let Americans fill their tanks now and pay in installments over six weeks.

BNPL clients tend to be Millennials and Gen Zers and two-thirds of applicants are subprime borrowers, according to research by Harvard Kennedy School researcher Marshall Lux.

These companies do not present themselves as lenders. BNPL is not credit but debit, with refunds taken automatically from customers’ bank accounts and without interest or charges.

In California, 91% of consumer loans issued in 2020 were BNPL loans, and 24% of financially vulnerable BNPL recipients report difficulty making payments.

BNPL’s lenders are not required by law to determine a borrower’s ability to repay their loans. There are no regulations regarding the disclosure of late payment fees, account reactivation or rejected payments.

“If people are using a credit product like this for their basic needs, I’m worried,” Chabrier said. She is concerned that BNPL clients may open several loans at once, they might lose track or have trouble repaying them all.

“A lot of people use buy now and pay later to stack their purchases from multiple vendors,” Chabrier said. “Because of the lack of subscription and whether or not they can afford these items, it becomes really unaffordable for them.”

Klarna caps late fees at 25% of the purchase amount, a far cry from the 400% interest rates charged by payday lenders, but Chabrier sees this as a lesser symptom of a larger problem.

“They’re continuing this process of extracting money from low-income people,” she said. “If people have less purchasing power with their salary, it will only get worse.”

Back in Mississippi, which has the highest poverty rate in the nation, Jones struggled to keep distressed callers out of the hands of loan sharks and into financial education programs sponsored by local banks. But it’s hard to work against so many payday lenders with huge advertising budgets, she said. The state has the highest concentration of payday lenders per capita in the nation, mostly in low-income areas or in communities of color.

Payday lenders are so prevalent in Mississippi, Jones said, that they outnumber McDonald’s restaurants by more than 5 times.

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[COLUMN] Customer compares Chapter 13 with various alternatives for $60,000 credit cards — https://tinigard.info/column-customer-compares-chapter-13-with-various-alternatives-for-60000-credit-cards/ Sat, 18 Jun 2022 19:57:30 +0000 https://tinigard.info/column-customer-compares-chapter-13-with-various-alternatives-for-60000-credit-cards/ [COLUMN] Customer compares Chapter 13 with various alternatives for $60,000 credit cards —THE client is 50 years old and married. He owes $60,000 in credit cards. He pays $2,000 a month in minimum credit card payments to keep the $60,000 current. His wife is not jointly and severally liable on these cards. She only owes about $2,000 in credit cards alone. They own a house that is […]]]> [COLUMN] Customer compares Chapter 13 with various alternatives for $60,000 credit cards —

THE client is 50 years old and married. He owes $60,000 in credit cards. He pays $2,000 a month in minimum credit card payments to keep the $60,000 current. His wife is not jointly and severally liable on these cards. She only owes about $2,000 in credit cards alone.

They own a house that is currently worth $1 million with a mortgage of $300,000. So their equity in the house is at least $700,000. The client’s home exemption is $600,000. This means there is $100,000 of non-exempt equity. According to the liquidation analysis, compared to Chapter 7, the customer will have to pay off the entire $60,000 of Chapter 13 credit cards over five years in 60 equal payments, without interest. All payments made under the Chapter 13 plan pay off the principal balance as there is no applicable interest.

The Chapter 13 plan payment is about $1,000 per month for 60 months, which will pay off all $60,000 in credit cards in five years. If the client makes all 60 payments according to the confirmed plan, the court will issue a discharge order at the end of the 60th payment. The discharge order will state that the customer owes zero or nothing on the credit cards at the end of the 5th year. Can creditors still sue the client for unpaid interest, absolutely not! Legally, the customer no longer owes anything on these cards.

Additionally, while the customer is on the plan, creditors cannot sue, call, or otherwise contact the customer to collect on the cards. The customer has peace of mind. He doesn’t have to worry about being sued. They can’t garnish his wages or take money from his bank accounts. The bankruptcy court protects the client’s residence from any attached creditor lien. Thus, in Chapter 13, the automatic bankruptcy stay protects the client, including all of their assets and home. This is the order of the bankruptcy court directing creditors to cease and desist from all collection efforts against the client and its assets. Pretty cool!

The client pays their plan payments to the Chapter 13 trustee, a court officer whose responsibility is to ensure that all plan payments are distributed to creditors who have filed their proofs of claim. The trustee ensures that all payments are distributed to the correct creditors. In other words, the trustee can’t get away with your money. This is another reason why the client will have peace of mind in Chapter 13. It pays the trustee who is under the supervision of the bankruptcy court.

What other alternatives are there before the customer decides to seek Chapter 13 relief for his $60,000 credit card?

One option he had was to get a $60,000 loan with very high interest to pay off all his credit cards. There were many offers from lenders for these alternatives. Payday lenders have branched out into this type of medium-term, high-interest loan to avoid regulation. The offers are $60,000 at 50% to 100% interest. Does it make sense to get this type of high interest loan? No, this is not the case. The client could end up losing his house if he got this loan. He will live a life of pain. He is expected to pay off a $60,000 principal loan with $90,000 to $120,000 in three to five years. Compare it with zero or no interest in chapter 13.

Another option he had was consolidation. He was actually in consolidation and was paying $1,800 a month for 60 months for six months to a “consolidator”. A “consolidator” is not an officer of justice. He is a businessman and consolidation is his business. What if he decides to close his business? Well, that’s the risk you take. One issue that arose was that two creditors did not agree to toe the line and sued for $30,000. Compare this to Chapter 13 where the court shields the client from all lawsuits and collection efforts. All collection efforts, including legal action, stop the minute the customer’s Chapter 13 is filed.

He also had the so-called “settlement” option. He can negotiate directly with creditors or use a third party to “settle” the debt at a price lower than what is owed. The client actually received several offers from various creditors to cancel part of the debt owed with a lump sum payment. For example, Creditor A will agree to accept 70% of what is owed $10,000 as settlement. Thus, for a payment of $7,000, the creditor will consider the case closed. Good luck raising the $7,000. Maybe you can do UBER at night and not sleep at all. After three months, you could have $7,000. The problem is that they want the $7,000 up front, not in three months. And, the other creditors do not agree to settle, they prefer to sue you immediately to recover their money.

Another option is to get a $60,000 HELOC or home equity loan and use the proceeds to pay off all credit cards. The interest rate for the HELOC is lower because the client’s home will be used as collateral for the loan. The client will have to obtain a second mortgage on his house for $60,000. Remember that HELOC loan interest rates fluctuate. When mortgage rates rise, as they did yesterday, and will rise for the rest of the year to rein in the high inflation at that time, the customer will end up paying double-digit interest on HELOC. And, if he stops paying on the HELOC, guess what happens? The creditor can and will seize his house.

It’s really no surprise that the client chose chapter 13 relief to protect his home from levies, lawsuits, wage garnishment, bank levies and just put an end to all those harassing phone calls for collection, and the unwanted risk of foreclosure of the client’s home through a HELOC loan. Peace of mind, no interest and full legal protection from the bankruptcy court. Trustee guarantees that your payments are distributed to the correct parties.

Of course, if the client’s net worth was $625,000, they would only have to pay a little over $400 per month for 60 months. At the end of the plan, $35,000 is discharged or wiped out. He doesn’t have to pay the full $60,000, he only has to pay $25,000 of the $60,000 cards because according to the liquidation analysis, only $25,000 is not exempt.

If you need debt relief, schedule an appointment to see me. I will analyze your case personally.

Disclaimer: None of the above is considered legal advice and there is no attorney-client relationship between reader and attorney.

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Disclaimer: None of the above is considered legal advice to anyone. There is absolutely no attorney client relationship established by reading this article.

* * *

Lawrence Bautista Yang specializes in bankruptcy, business, real estate and civil litigation and has successfully represented over five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58, Building A-10 South, Suite 10042, Alhambra, CA 91803 .

(advertising supplement)

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Our bodies, our societies and our planet are inflamed for the same reasons. https://tinigard.info/our-bodies-our-societies-and-our-planet-are-inflamed-for-the-same-reasons/ Sat, 18 Jun 2022 07:08:50 +0000 https://tinigard.info/our-bodies-our-societies-and-our-planet-are-inflamed-for-the-same-reasons/ Activist, filmmaker and best-selling author Raj Patel was dressed as a genetically modified tomato when he met Rupa Marya, MD over a decade ago. They were at a protest organized against the use of pesticides, and Marya, who is both a musician and a doctor, was performing at the event with her world touring band […]]]>

Activist, filmmaker and best-selling author Raj Patel was dressed as a genetically modified tomato when he met Rupa Marya, MD over a decade ago. They were at a protest organized against the use of pesticides, and Marya, who is both a musician and a doctor, was performing at the event with her world touring band Rupa and the April Fishes. Patel says the two quickly became friends.

Patel is a widely published author, perhaps best known for his New York Times and international bestseller, The value of nothing. He is also a filmmaker and research professor at the Lyndon B Johnson School of Public Affairs at the University of Texas at Austin. Marya is an Associate Professor of Medicine at the University of California, San Francisco (UCSF), whose research focuses on the intersections of social structures and disease, as well as the impacts of the culture of colonialism on health. She is also the Executive Director and Chair of the Board of Directors of the Deep Medicine Circle, a 501(c)(3) nonprofit organization run by women of color and run by workers in the San Francisco Bay Area. , focused on decolonizing agriculture and restoring a relationship with nature through food. .

Recently, Marya and Patel co-wrote the book Inflamed: Deep Medicine and the Anatomy of Injusticepublished in 2021 by Macmillan.

“We had been plotting the book for years, and it was picked up by a publisher just as the pandemic was breaking out in the United States. [in spring 2020]“, says Patel. “Our lives during the pandemic have resonated with writing. Between us, we have experienced wildfires, being climate refugees, a long COVID-19, deaths of loved ones due to COVID- 19, diseases of the food system, racism, and gun violence.We weaved that pain and anger through the book.

Their book sheds light on the connections between health and the structural injustices prevalent in modern societies, and its structure goes through different anatomical systems of the body as a framework for discussing not only the health crises facing society, but also the injustices food, racism, the climate, the medical industry. and beyond.

“The vision was to have a book that subverts the way the body is taught, as separate individual systems within the body,” says Patel. “As you go through the book, it becomes increasingly clear that you can’t understand, say, the gut without understanding the brain and the complexity of systems within systems.”

The common thread throughout the book is inflammation, and the many interconnected ways in which our bodies, our societies, and our planet are all ‘inflamed’.

Patel says the conversation about inflammation started between him and Marya after a “powerful” lecture Marya gave at the University of Texas which he attended.

“As I drove her to the airport, it became clear that my work on food systems and peasant/worker struggles in the Global South resonated with hers on the front lines of struggles for indigenous and racial justice, and [both our works] have been linked by inflammation,” he says.

Patel explains that inflammation is the body’s natural response to the threat of damage, which is a necessary start in the healing process, that is, until the causes of inflammation become a constant.

“When damage – and the threat of it – occurs every day, the body never has a chance to heal,” he says. “The damage and the danger of damage are not evenly distributed. Social injustice – the fear of losing your car, your home or your life to powerful people for any offense, real or perceived – is something that working-class communities, women and communities of people of color can feel on a daily basis. . This threat does as much real harm as the exposures to pollution, extreme weather and daily physical harm in the workplace that these people face. The resulting inflammation puts the bodies of people in these communities into a life of worse health than the wealthiest white men on Earth could ever conceive.

As the book’s subtitle suggests, the book delves into the idea of ​​”deep medicine,” which Marya says is a way of seeing and understanding how larger social structures contribute to disease, and then working. with this understanding to rethink these structures.

The concept of deep medicine, says Marya, contrasts with “shallow medicine,” which tends to focus on the cause of illness originating from a single individual. She says that in working on the book, she and Patel were able to combine their insights and research from years of working with communities around the world into “a discussion of food systems and land use, medicine and biology, histories and cosmologies”.

With her band, Marya has toured 29 different countries over the decades. She says that by returning to the same communities many times over the years, she was able to see certain patterns emerge related to how people got sick and who did or didn’t get sick. She says these observations became the groundwork that ultimately led to the concepts covered in Inflamed.

“The book was born from these ideas while traveling,” she says. “[About 18 years ago] I started noticing that all these different groups that were marginalized or socially oppressed, or from communities that had endured colonization, were suffering. People suffered in very similar ways. I started calling it “colonized syndrome”.

She says the communities she and Patel each had a chance to see and work with informed the story they told in the book, “that our bodies, our societies and our planet are being damaged by the same cosmology that severed our relationship. with each other and to the web of life that keeps us healthy.

Patel says that once the two co-authors realized that inflammation was like a nexus between physical health and the many injustices of today’s socio-economic systems, the problem was what was it? what to include and what to omit from the book, as they began to notice evidence everywhere “linking bodily inflammation to that of the planet, and the machinations of colonial capitalism.”

“Once you see inflammation, its pathways, causes, and effects, you can’t ignore it,” he says. “The New York Times published an article about the race to steal the microbiome from indigenous communities in the Amazon to heal those in the North whose guts have been stripped bare while living in cities,” adds Patel. “This kind of colonial plunder is exactly what we predicted in the book.”

Patel says he enjoyed learning from Marya about how the body “transmits the insults of capitalism through the mind down to the cellular level.”

“Learning how payday loans are associated with higher levels of inflammatory markers, and that the best medicine is not an anti-inflammatory pill but banning payday loans, is something that surprised me. Seems obvious now, but it was a surprising thing to discover while we were writing. [the book].”

Since its publication, says Patel Inflamed has been used and quoted in movements around the world. If he could leave readers with just one takeaway from the book, he says it would be “to organize!”

“There’s nothing in the book that you can really do on your own,” he says. “Of course, eat healthy, turn off your phone at night, sleep well, exercise and spend time connected to the web of life. These are all things that, if you can do them, you probably already do. The problem is that the ability to do this is not evenly distributed. Until everyone is safe, no one is. And capitalism won’t keep everyone safe. So the drug [to cure this situation] is to go beyond capitalism. It is not something that can happen by individual will. Only by collective power. So get organized!

April M. Short is an editor, journalist and documentary editor and producer. She is a contributing editor at Local Peace Economy, a project of the Independent Media Institute. Previously, she was an editor at AlterNet as well as an award-winning senior editor for the Santa Cruz, Calif., weekly..

Source: Independent Media Institute

Credit line: This article was produced by Local economy of peacea project of the Independent Media Institute.

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Business groups claiming to support service members do not https://tinigard.info/business-groups-claiming-to-support-service-members-do-not/ Tue, 14 Jun 2022 09:39:20 +0000 https://tinigard.info/business-groups-claiming-to-support-service-members-do-not/ In 1994, Congress passed the Uniformed Services Employment and Re-employment Rights Act (USER) with the goal of prohibiting discrimination against members of the military in employment, as well as ensuring minimal disruption to service members and their families when called into service. In 2003, Congress revised and expanded the Soldiers’ and Sailors’ Civil Relief Act […]]]>

In 1994, Congress passed the Uniformed Services Employment and Re-employment Rights Act (USER) with the goal of prohibiting discrimination against members of the military in employment, as well as ensuring minimal disruption to service members and their families when called into service. In 2003, Congress revised and expanded the Soldiers’ and Sailors’ Civil Relief Act of 1940, creating the Servicemembers Civil Relief Act (SCRA). The new law governs the treatment of service members in rental agreements, evictions, credit card interest rates, mortgage interest rates, foreclosures, civil legal proceedings, auto leases, life insurance, health insurance, income tax payments, etc.

But forced arbitration agreements inserted into many consumer and employment contracts circumvent these legal protections for service members, undermining the very reasons these bills were passed. The result is that big corporations routinely fire service members, seize their family homes, repossess their cars, rip off their pensions and even profit from life insurance policies after service members are killed, according to a 2018 report of the American Association for Justice. In 2012, the U.S. Government Accountability Office (GAO) uncovered 15,000 cases of financial institutions failing to reduce mortgage interest rates for service members who qualified for a mortgage rate cap. ‘interest. And each year, the GAO has determined that more than 300 illegal seizures occur in violation of SCRA.

More from Jarod Facundo

Violations of the SCRA are criminal and the law provides for jail time. During the financial crisis, major banks like JPMorgan Chase, Wells Fargo, Bank of America and Citigroup paid hundreds of millions of dollars penalties for unlawfully seizing active duty service members, in some cases while serving overseas. But no one went to jail, and arbitration agreements further protect big companies from liability.

Stand-alone bills such as the Justice for the Military Act would directly address the loophole, ensuring that the military choose for themselves whether or not to go to arbitration. The senses. Richard Blumenthal (D-CT) and Lisa Murkowski (R-AK) also changes previously included to the National Defense Authorization Act which mirror the stand-alone Military Justice Bill.

Today, a group of 31 members of service and veterans advocacy organizations sent a letter to the leaders of the Senate Armed Services and Veterans Affairs Committees, urging them to support the Justice for the Military Act. , an upcoming Senate companion bill, and any amendments to the NDAA that include the language of the bill.

But organizations that claim to support the military and its members are the most vocally opposed to such reforms.

The Chamber of Commerce touts its “Hire Our Heroes” program, which helps service members secure scholarships in a range of sectors and partner companies. Yet in the first quarter of 2022, the House spent $18.6 million on lobbying expenses. Disclosure forms reveal that these activities included lobbying on the NDAA and the 2021 law ending forced arbitration of sexual assault and sexual harassment.

On March 3, President Biden signed the Sexual Assault Bill in the law. During the signing ceremony, Biden signaled his support for broader reforms against the practice. “I know there are discussions in Congress about whether forced arbitration clauses should also be prohibited for other types of labor disputes beyond sexual harassment and assault. I think that everything is wrong and that they should be banned. he said.

Big corporations routinely fire Service members, seize their family homes, repossess their cars, rip off their pensions, and even profit from life insurance policies after Service members are killed.

The Consumer Bankers Association, a trade group that includes some of the largest financial institutions, says it supports service members through investment initiatives. The ABC even has supported extending lock protections under SCRA from three months after separation to one year. But their support rings hollow as long as forced arbitration clauses can circumvent those protections.

The ABC has spent $790,000 lobbying against the Military Loans Act, which forbidden to banks to require military personnel to submit to forced arbitration and set a maximum annual rate for loans to 36 percent military personnel. Their lobbying activities also include issues related to the SCRA.

The Chamber of Commerce and the ABC did not respond to the Perspective‘s requests for comments.

Last year on Veterans Day, the American Financial Services Association (AFSA), in a blog post titled “Remembering America’s Bestargued that the MLA is actually hurting members of the military because reputable lenders are unable to offer small loans below a 36% interest rate. AFSA’s lobbying activities, which so far total $280,000 This year, have included lobbying on MLA and SCRA “termination of lease” provisions. In other words, forced arbitration clauses.

In a statement to Perspective, the AFSA distinguished its practices as “traditional installment loan products” from predatory lenders such as payday loans and self-title loans. The AFSA said the MLA should “clearly target payday loans”.

TO SEE HOW ARBITRATION AGREEMENTS affect service members, consider the case of U.S. Navy reservist Kevin Ziober. In 2018, after ten years in the reserves, Ziober was a lieutenant commander overseeing the training and mobilization readiness of a 130-member intelligence unit based in San Diego.

As a reservist, Ziober hoped future employers would understand that his military career could require deployment on short notice for weeks, months, or even years at a time. In 2010, Ziober began working as a manager for BLB Resources, Inc., a federal contractor located in Irvine, California. Over a two-year period, Ziober helped grow the company from 18 employees to 90.

But six months after taking office, Ziober recalled in testimony before the Senate Judiciary Committee, BLB asked him and other employees to sign several legal documents, including an arbitration agreement, as a condition of keeping their jobs. Eighteen months later, in November 2012, he was officially ordered by the Navy to deploy to Afghanistan for a year. Ziober testified that BLB had known for months that the deployment was imminent.

On November 30, 2012, Ziober’s last day of work, BLB threw a surprise party in his honor. He said: “There was even a big cake with an American flag decorated in red, white and blue, with the inscription ‘Best wishes, Kevin.’ After his party, Ziober was called in for a meeting with the human resources manager, his supervisor, and what he guessed was a labor consultant or attorney. He was told that he would have no work waiting for him when he returned from Afghanistan.

“The shock of learning that I was being fired from my job on the eve of my deployment to a combat zone created an unimaginable amount of worry and anxiety about how I would support myself and those of my family when I return,” Ziober said. “Within hours, I went from feeling supported, proud and focused on serving my country to feeling embarrassed, confused and concerned for the well-being of my loved ones.”

Ziober’s experience with forced arbitration is why veterans’ and service members’ advocacy groups have long called for an end to the practice.

For advocates like the Veterans of Foreign Wars (VFW), the passage of the Military Justice Act or its inclusion in the latest NDAA is to restore the rights granted to military personnel under USERRA and the SCRA, and to allow individuals to decide for themselves whether to go to court. On a larger scale, forced arbitration decreases troop readiness. “Adding stressors is the worst thing you can do to the people we send into danger,” said VFW legislative director Patrick Murray.

Groups like the Chamber of Commerce, AFSA and ABC proclaim to the public that they support the troops, but critics say their lobbying activity is actively worsening the lives of service members and their families.

The AFSA told the Perspective that he did not support the Justice for Service Members Act or current and previous versions of the NDAA that include language from the bill. Instead, the AFSA said: “Arbitration has been shown to help consumers, including the military, time and time again. It’s faster, cheaper, and has a better track record of consumer relief than class action lawsuits.

Forced arbitration providers are not required to report the number of cases filed, only those that are closed, but this number has increased since 2017. Contrary to claims by the AFSA, the pass rate for consumers and workers has fallen below the five-year averages. In 2020, 4.1% of consumers won their case. And for the workers, only 82 individuals, representing 1.6% of the cases, obtained a monetary reward by forced arbitration.

As Murray told the Perspective“I can’t understand a real justification for [forced arbitration]. It is not better for the troops or the military.

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Review of possible financing installment loans 2022 – Forbes Advisor https://tinigard.info/review-of-possible-financing-installment-loans-2022-forbes-advisor/ Thu, 09 Jun 2022 17:12:24 +0000 https://tinigard.info/review-of-possible-financing-installment-loans-2022-forbes-advisor/ Although Possible Finance can quickly offer small loans to borrowers with bad credit (or no credit), it charges higher APRs than some other personal lenders. Here’s how Possible Finance’s installment loans stack up against competitors. Possible financing against upgrade Upgrade offers personal loans starting at $1,000, so it might be a better option than Possible […]]]>

Although Possible Finance can quickly offer small loans to borrowers with bad credit (or no credit), it charges higher APRs than some other personal lenders. Here’s how Possible Finance’s installment loans stack up against competitors.

Possible financing against upgrade

Upgrade offers personal loans starting at $1,000, so it might be a better option than Possible Finance if you need to borrow more than $500. In fact, you can borrow up to $50,000 with the upgrade and APRs start around 6% and go up to 36%. Since Upgrade’s rates are much more competitive than those of Possible Finance, it may be worth checking to see if you qualify for one of its personal loans before borrowing a Possible installment loan.

The upgrade requires a minimum credit score of 580 to qualify, making it a viable option for potential borrowers with damaged credit.

Related: Personal Loans Review Upgrade

Possible financing against SoFi

Possible Finance offers small loans up to $500, but SoFi funds personal loans between $5,000 and $100,000. SoFi’s competitive APRs start around 6%, but you’ll need to pass a credit check to qualify. SoFi requires a minimum credit score of 650. If you cannot qualify on your own, you may consider applying with a co-borrower, such as a spouse or trusted friend.

Related: SoFi Personal Loans Review

Possible financing against LightStream

Similar to SoFi, LightStream also offers personal loans from $5,000 to $100,000, depending on the purpose of the loan, with competitive APRs starting in the low single digits. While Possible Finance finances short-term loans, LightStream allows you to repay your loans over two to 20 years. You must have a minimum credit score of 660 to qualify for a LightStream personal loan.

Related: LightStream Personal Loans Review

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Michigan lawmakers agree to “beer walls,” swim-up bars; “We need these things” https://tinigard.info/michigan-lawmakers-agree-to-beer-walls-swim-up-bars-we-need-these-things/ Wed, 08 Jun 2022 18:33:40 +0000 https://tinigard.info/michigan-lawmakers-agree-to-beer-walls-swim-up-bars-we-need-these-things/ Hotels, resorts and water parks that have a liquor license would have the ability to open swim-up bars for adult guests under bipartisan House legislation directed at Governor Gretchen Whitmer after a vote of 37 to 1 in the State Senate. Related: Bars, restaurants and other businesses with “on-premises” liquor licenses would also be allowed […]]]>

Hotels, resorts and water parks that have a liquor license would have the ability to open swim-up bars for adult guests under bipartisan House legislation directed at Governor Gretchen Whitmer after a vote of 37 to 1 in the State Senate.

Related:

Bars, restaurants and other businesses with “on-premises” liquor licenses would also be allowed to install “self-serve dispensers” – such as “tap walls” or “beer walls” – so that customers can pour their own drinks, under a bill approved by the House on Wednesday in a 78-28 vote.

The House also gave final approval on Tuesday to legislation that would allow 17-year-olds to serve alcohol in restaurants, provided they complete a training program and are supervised by someone 18 or older. .

“We’re getting creative and tinkering around the edges, if you will, on ways to help a still-beleaguered industry, especially on the labor side,” said Justin Winslow, president and CEO. the leadership of the Michigan Restaurant & Lodging Association, which lobbied for swim-up bar legislation.

He said Michigan hotels and restaurants are making a comeback, but the industry is employing 35,000 fewer workers than before the pandemic, when there were about 435,000 employees.

“The challenge is that the demand has increased and we don’t quite have the supply to meet it yet,” Winslow said in Bridge Michigan.

The pandemic has really “altered a lot of the thinking about customer service,” said Sen. Jim Runestad, R-White Lake, who sponsored the self-serve liquor bill and said it would help Michigan catch up with dozens of states with similar laws. .

Self-service taps would help customers who are wary of airborne germs or viruses – as well as businesses that have struggled to find workers amid a labor shortage that became “particularly acute,” Runestad told Bridge.

The proposal would allow liquor dispensers in hotel rooms, restaurant booths or elsewhere in a bar. Customers would first need to show ID to purchase a secure key card that they could scan to activate the tap and pour their own beer, wine or mixed drinks.

Self-serve dispensers could dispense up to 16 ounces of beer, 12 ounces of wine, or 12 ounces of a mixed drink per serving. Customers would be limited to 32 ounces in total unless a bartender or employee agrees to let them buy more.

“I’ve been in bars where people completely go out of their minds, pull themselves together enough to say ‘another double,’ and a busy bartender offers them a drink,” Runestad said. “It’s much safer because they would have to come and go through a process in order to get more alcohol.”

Pool bar legislation is backed by companies such as Bavarian Inn Lodge in Frankenmuth, which has four indoor pools and two waterslides, and Boyne Mountain Resort in Boyne Falls, which includes the Avalanche Bay indoor water park. .

“Pool bars have been in operation around the world and in 24 states for many years,” Bavarian Inn’s Michael Zehnder said last month in committee testimony, telling lawmakers that his family was considering expanding its business. company “bigger than ever”. “Neighboring states like Ohio and Wisconsin have had a competitive advantage over Michigan for years.”

Under the legislation, swim-up bars could only be operated by businesses that already held an on-site liquor license, and they could only be located in “a well-defined exclusive area, clearly marked and not accessible to minors”.

The bars themselves should be made of a material that is “non-absorbent” and does not contain any sharp edges. The pool would need a lifeguard service and could not contain a slide or diving board.

The water should be treated with “enhanced disinfection and filtration standards” and monitored with an electronic chemical control system. And plates and cups should be made of plastic or another shatterproof material designed to “reduce the risk of spilling food or drink” into the water.

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How bank closures are hurting consumers and what you can do about it https://tinigard.info/how-bank-closures-are-hurting-consumers-and-what-you-can-do-about-it/ Wed, 01 Jun 2022 21:35:14 +0000 https://tinigard.info/how-bank-closures-are-hurting-consumers-and-what-you-can-do-about-it/ Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners. It’s no secret that as more and more services go digital, retailers sometimes struggle to find […]]]>

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We earn commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

It’s no secret that as more and more services go digital, retailers sometimes struggle to find their footing in the new reality. While many imagine in-person shopping being replaced by online retailers, a similar trend is occurring with US banks as consumers continue to visit physical branches less frequently.

In some communities, neighborhood banks forced to close have caused significant damage to local economies and exacerbated existing financial inequalities.

Below, Select details what’s happened recently with retail banking and how you can choose the best bank account for your personal and financial needs.

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Branch closures hurt consumers and communities

One of the fundamental decisions of personal finance is about choosing where your money resides, and that’s usually in a bank. The vast majority of Americans – around 95% – have opened bank accounts. According to 2019 FDIC data, about 5% of Americans remain “unbanked,” meaning they don’t have a traditional checking or savings account. And as banks continue to close across the country, that makes banking opportunities even more difficult.

For starters, the trend of bank closures is not new. In 2000, there were 8,000 commercial banks in the United States, according to FDIC data. In 2021, just over half of them, 4,236, were still standing, and that number continues to drop even in 2022 – it’s now down to 4,194 as of March 31. The closures are also not limited to small banks in rural communities, as also happens to large traditional banks in densely populated areas.

According to a report by S&P Global Market Intelligence, Wells Fargo led the pack with 267 bank branch closures in 2021, followed by US Bank and Truist with 257 and 234 branch closures, respectively. The five hardest hit states are California, with 269 branch closures; Michigan, with 247 branches; New York, with 221 branches; Florida, with 192 branches; and Illinois, with 153 branches.

While this trend is widespread, it hits low-income and majority-minority communities even harder. According to the National Community Reinvestment Coalition, one-third of branches closed from 2017 to 2021 occurred in low-income, majority-minority areas.

Nor are the ramifications of banks suddenly disappearing from communities at the surface level – affected residents now have to drive further to make a simple deposit or withdraw money, which takes longer, for example.

Bank branch consolidation also creates “banking deserts”, when communities do not have access to a bank or credit union within 10 miles. Several studies have shown that these communities are more likely to use non-traditional, high-fee lending options such as payday loans and check cashing services, which increases financial inequality and ultimately widens the gap. wealth gap.

Although there may be fewer physical banking locations, there are still options for consumers, despite what may or may not be available locally.

How to choose a bank

When you are When choosing a new bank or credit union, there are several things to consider to help you choose the best one for your financial situation:

Assess account features and fees

First, if your bank charges you a monthly fee, find out why. With a wide variety of no-fee bank accounts available, you really shouldn’t pay for a checking or savings account.

You can also check out other account features to see what might be useful to you. For example, another bank may offer benefits such as free credit monitoring or a higher interest rate than your current bank. Or, if you want better online tools, it might be worth switching to a digitally-savvy bank.

When looking for a new bank, ask yourself this question: what features do I really need?

The answer could be anything from free ATM withdrawals, no overdraft fees or online bill payments to a well-designed website and mobile app, and 24/7 customer service. . Benefits that match your needs should be the focus of your next bank account.

Digital or in-person banking

Whether you live in a big city or a rural community, it’s hard to argue with the convenience of online-only banking. According to JD Power’s 2022 U.S. Direct Banking Satisfaction Study, a quarter, or about 27%, of Americans currently use online banking only.

The study also suggests that online banks are the best when it comes to customer satisfaction, with Charles Schwab and Discover Bank tied for first place and Ally Bank third for checking accounts. Savings accounts had similar results, with American Express, Discover Bank and Charles Schwab leading the pack.

If you tend to pay for your expenses with cards rather than cash, going digital might be a more efficient decision.

American Express® High Yield Savings Account

American Express National Bank is a member of the FDIC.

  • Annual Percentage Yield (APY)

  • The minimum balance

    Minimum balance to open is $0

  • Monthly fee

  • Maximum transactions

    Up to 9 free withdrawals or transfers per statement cycle *Cycle withdrawal limit of 6/instructions is waived during the Coronavirus outbreak under Regulation D

  • Excessive transaction fees

  • Overdraft fees

  • Offer a current account?

  • Offer an ATM card?

American Express National Bank is a member of the FDIC.

Discover the online savings account

Discover Bank is a member of the FDIC.

  • Annual Percentage Yield (APY)

  • The minimum balance

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *Cycle withdrawal limit of 6/instructions is waived during the Coronavirus outbreak under Regulation D

  • Excessive transaction fees

    Discover may refuse to pay for each transaction that exceeds the limits. If you exceed these limits more than occasionally, it may result in the termination of your account.

  • Overdraft fees

  • Offer a current account?

  • Offer an ATM card?

    Yes, if you have a Discover current account

Take advantage of welcome bonuses

Much like rewards credit cards, banks sometimes offer welcome bonuses to attract new customers, usually in the form of cash incentives for maintaining a specific balance in your account or for setting up direct deposit with your employer.

Personally, I got into the habit of changing banks to get welcome bonuses and made significant profits. If you’re a little flexible when it comes to choosing a bank, consider one of these active checking account bonuses:

  • Up to $400 for opening and using a new Virtual Wallet through PNC Bank – that’s $50 for a new Virtual Wallet, $200 for a new Virtual Wallet with Performance Spend or $400 for a new virtual wallet with Performance Select.
  • A $200 bonus for opening a Chase Total Checking® account and setting up direct deposit within 90 days (offer valid through July 20, 2022).
  • A $100 bonus for opening a Chase College Checking℠ account and completing 10 qualifying transactions within 60 days (offer valid until July 20, 2022).

Additional offers are also available and change frequently, so be sure to check often to see what’s available in your area or online.

At the end of the line

Because the retail banking space has evolved rapidly in recent years, it may be time to reevaluate your banking relationship. Whether your local branch now has limited opening hours or has already closed, or your financial needs have changed, switching banks can be a great financial step for you.

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

The interest rate and APY are subject to change at any time without notice before and after opening an American Express® High Yield Savings Account.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

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Talent-hungry employers offer workers naturalization help https://tinigard.info/talent-hungry-employers-offer-workers-naturalization-help/ Wed, 01 Jun 2022 09:37:54 +0000 https://tinigard.info/talent-hungry-employers-offer-workers-naturalization-help/ Amazon.com Inc. is at the forefront of efforts to help workers obtain citizenship and other immigration benefits, an effort to attract and retain talent, as government officials and business groups consider immigrants as the key to meeting labor needs in the United States. The online retail giant’s “Welcome Door” program targets refugees and other humanitarian […]]]>

Amazon.com Inc. is at the forefront of efforts to help workers obtain citizenship and other immigration benefits, an effort to attract and retain talent, as government officials and business groups consider immigrants as the key to meeting labor needs in the United States.

The online retail giant’s “Welcome Door” program targets refugees and other humanitarian immigrant workers such as asylum seekers with assistance that includes reimbursement for work permits. The program also provides lawful permanent residents with legal support for their naturalization applications.

Amazon began offering the benefits to workers in the United States in April and will expand them to other countries later this year, spokeswoman Ellie Russell said.

The California Farm Bureau Federation, an organization of farmers and ranchers in the state, announced similar plans late last year.

A significant portion of California’s agricultural workforce includes lawful permanent residents. These workers — who are typically older, more experienced and more skilled — are also the type of employees most important for farmers and ranchers to retain, said C. Bryan Little, director of labor affairs. at the California Farm Bureau Federation.

“A lot of these people are in key jobs in these agricultural establishments,” he said. “We want to give them the opportunity to become an employer of choice in their community.

Both initiatives demonstrate the premium that employers are willing to place on retaining their immigrant workforce. They are also being rolled out as many industries face new hiring challenges – a challenge farmers faced for years before the current labor shortage.

“It’s all about employee retention,” said David Bier, associate director of immigration studies at the Cato Institute. “Staff turnover is a huge cost to employers because you don’t just have lost productivity and worker downtime. You also have the added cost of finding and training a new replacement.

Immigrants have made an outsized contribution to US labor force growth since 2010, according to analysis by Goldman Sachs. But the pace of new immigration has slowed in the past two years.

It makes more sense for employers to sink a few hundred dollars to keep valuable employees who may have job choices, Bier said.

win-win

Labor Secretary Marty Walsh recently called on lawmakers to overhaul the US immigration system, saying simply adding more temporary visas is not enough to make up for labor shortages. But even as Congress makes green cards and citizenship more widely available, high fees — and a complex application process — prevent workers from obtaining full citizenship.

About 67% of naturalized citizens borrowed from high-interest sources like credit cards or payday lenders to fund the $725 naturalization fee that U.S. Citizenship and Immigration Services charges. , according to a survey by BlueHub Capital, a nonprofit community funding organization. The survey included more than 1,200 respondents who were non-citizen or naturalized immigrants between 2016 and 2021.

The organization this year launched a platform called One Percent America to offer low-interest loans to help green card holders afford to become citizens.

“We’re not giving people the option to afford those USCIS fees,” said Jaime Escott, vice president of marketing at BlueHub.

Private sector employers pay large sums to sponsor workers for employment-based visas. But because citizenship isn’t required for work eligibility, “companies typically stop at that point and don’t see the need to cover those costs,” said Helena Coric, senior program manager at integration with the National Immigration Forum, which partners with Amazon and the California Farm Bureau Federation to provide legal services for naturalization.

Completing this process provides immigrants with more security and the ability to reunite with their immediate family members faster than they could with a green card.

“Being able to promote that benefit when the employee logs in is huge,” Coric said. “Knowing that an employer is going to provide this deeply discounted legal assistance can really increase retention, especially if that employer ends up extending the benefit to an immediate family member as well.”

Few exemptions

USCIS promoted naturalization opportunities by conducting outreach to immigrant communities, providing educational tools and running a social media campaign to encourage eligible people to apply for citizenship, a doorman said. – word of the agency.

The agency also has a process to waive fees for certain forms and will offer to adjust fees charged for immigration and naturalization benefits for the first time since 2016, the spokesperson said.

Immigration advocates, however, point out that fee waivers are only available to the poorest immigrants. Immigrants may qualify for a naturalization fee waiver if their annual income is below 150% of the federal poverty level, or about $20,000.

USCIS Director Ur Jaddou touted an upcoming update to the agency’s fee schedule during an April congressional hearing on the agency’s fiscal year 2023 budget request.

The agency’s latest attempt to update the charges under the Trump administration has been blocked by a federal court in a case alleging then-serving Homeland Security Secretary Chad Wolf was unlawfully carrying out his role. Advocacy groups that sued also showed that the increased fees would place an unfair burden on low-income immigrants, the court heard.

The Department of Homeland Security, the parent agency of USCIS, estimated that there were 9.2 million green card holders in the United States eligible to become citizens in January 2021. States like New York and local governments such as the City and County of San Francisco and Montgomery County, Md., have launched their own citizenship assistance programs to facilitate application.

The effectiveness of these programs shows that cost is a significant barrier, said Jorge Loweree, director of policy at the American Immigration Council.

Other Immigration Fees

The financial burdens of the immigration system are not limited to naturalization. Applicants for the Deferred Action for Childhood Arrivals program, which offers protection from deportation and work authorization, pay $495 to renew their status.

“It’s a huge sum that we have to give to the government every two years,” said Juliana Macedo do Nascimento, deputy director of federal advocacy at United We Dream.

Although the program’s long-term status remains uncertain, universities, employers, and nonprofits have all provided DACA recipients with financial assistance to renew their coverages. For those who aren’t employees or students of these institutions, there’s often “just not enough money in the nonprofit world to pay everyone in need,” Macedo said. Nascimento.

The reality is that USCIS operations depend on collecting money from the people it provides services to, Loweree said. Going forward, the agency may shift some of those costs to people in categories better able to pay them, he said.

“If anyone has demonstrated that they are fully committed to this country and want to participate fully in our democracy, we should welcome them to the United States with open arms,” he said.

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Press Releases | Press | President’s Press Room | Chair https://tinigard.info/press-releases-press-presidents-press-room-chair/ Thu, 19 May 2022 22:02:33 +0000 https://tinigard.info/press-releases-press-presidents-press-room-chair/ 19.05.22 BuzzFeed Investigation Showed KKR Puts Profits Before Patients, Leading to Abuse and Neglect and Putting Patients’ Lives at Risk washington d.c. — US Senators Patty Murray (D-Wash.), Chair of the Senate Committee on Health, Education, Labor and Pensions; Elizabeth Warren (D-Mass.), member of the Senate Finance and Banking, Housing, and Urban Affairs Committees; Ron […]]]>

19.05.22

BuzzFeed Investigation Showed KKR Puts Profits Before Patients, Leading to Abuse and Neglect and Putting Patients’ Lives at Risk

washington d.c. — US Senators Patty Murray (D-Wash.), Chair of the Senate Committee on Health, Education, Labor and Pensions; Elizabeth Warren (D-Mass.), member of the Senate Finance and Banking, Housing, and Urban Affairs Committees; Ron Wyden (D-Ore.), Chairman of the Senate Finance Committee; and Bernie Sanders (I-Vt.), chairman of the Senate Budget Committee, sent a letter to the co-CEOs of private equity firm KKR, lambasting the company after a BuzzFeed News An investigation found that following KKR’s acquisition of BrightSpring Health in 2019, the company provided significantly substandard care and unsafe living conditions in its intermediate care facilities (ICFs) – nursing homes. group for people with intellectual and developmental disabilities. KKR and BrightSpring executives are poised to cash in as patient safety and quality of care decline. Senators are demanding answers from KKR over its troubling business practices, which put patient safety at risk.

“The BuzzFeed News The investigation found that after the KKR acquisition, care at BrightSpring’s ICFs deteriorated, with regulators finding 118 cases of “dangerously low staff” in seven states, double the rate seen at facilities. not belonging to KKR. Over the same period, KKR boasted of increasing BrightSpring’s revenue from $2.5 billion in 2018 to $5.6 billion in 2022. But there’s no indication that that revenue was used. to improve the quality of care in ICFs: “conditions [at BrightSpring ICFs] became so bad that nurses and caregivers quit en masse, a state banned the company from accepting new residents, and some of the most vulnerable people it cared for suffered and died,” write the senators.

The senators denounced the long-standing problem of the role of private equity in health care – which places short-term profit maximization above considerations of quality of care and patients. While KKR’s BrightSpring-owned small-scale ICFs in California, Indiana, Louisiana, North Carolina, Ohio, Texas, and West Virginia accounted for only 16% of ICFs, they accounted for 40% of serious citations in those states. the BuzzFeed investigation revealed that nurses and other social workers had alarming turnover rates, uncompetitive salaries and inadequate training.

BrightSpring and KKR’s failure to protect ICF patients and efforts to maximize profits have also resulted in preventable injuries and deaths. In West Virginia, state officials accused BrightSpring of ignoring multiple warnings that led to at least one preventable death and ordered BrightSpring to stop accepting new patients, ultimately closing 20% ​​of homes in West Virginia. organization in the state. Facility managers said they faced pressure to keep homes full, even with patients they could not care for, to maximize profits.

The senators criticized KKR for choosing to pocket their profits instead of improving conditions for patients. BrightSpring’s board of directors, controlled by KKR, has burdened the company with $1.1 billion in debt, and BrightSpring has paid more than $135 million a year in interest on its loans. Meanwhile, BrightSpring CEO Jon Rousseau doubled his salary to $1.6 million in 2020. Now KKR and BrightSpring executives who oversaw the company’s operations after the acquisition are ready for another payday. In October 2021, the company filed for IPO in a $100 million initial public offering, citing its access to a “combined $1.5 trillion market opportunity”.

“We have long been concerned about the deleterious impact of private equity on healthcare and patient care. Your company exemplifies how private equity firms exploit the healthcare industry to make profits at every step. Private equity has moved into healthcare services, from rural hospitals to nursing homes and hospices, to healthcare bill management and debt collection systems. , exacerbating existing issues such as surprise medical billing, inadequate training, and lack of oversight and due process,” say the senators.

The senators called on KKR to answer a series of questions about the impact of its acquisition of BrightSpring Health on patients by June 2, 2022.

Read the full letter here.

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