Commentary, News

Big win for NC consumers as A.G., Banking Commissioner thwart loan sharks

There was good news in the fight against predatory consumer lending yesterday as two online predators were forced to pay back more than $9 million in ill-gotten revenue. This announcement is from Attorney General Roy Cooper’s office:

CashCall, Western Sky to pay NC $9 million plus for illegal loans
Online fast cash lender that charged excessive interest rates now banned from business

North Carolina consumers who took out loans from online fast cash lenders CashCall and Western Sky will share more than $9 million in refunds under a settlement approved by the court, Attorney General Roy Cooper and Commissioner of Banks Ray Grace announced today.

“Instead of pulling you out of the ditch, these kinds of loans sink borrowers deeper and deeper in debt,” Cooper said. “North Carolinians who fall prey to these unfair and unlawful loans deserve relief.”

“We expect those who lend to North Carolina consumers to do so legally,” said Grace. “The defendants sought to circumvent the law in order to charge consumers illegal fees and interest rates resulting in a cycle of debt. This hurts not just consumers but other licensed lenders that abide by the law.”

In December 2013, Cooper and the North Carolina Office of the Commissioner of Banks filed suit against CashCall, Western Sky and related companies for violating North Carolina laws that ban excessive interest rates on small consumer loans. According to the complaint, financially strapped North Carolina consumers who took out personal loans of $850 to $10,000 from the defendants faced annual interest rates of 89 to 342 percent, far in excess of rates allowed under state law. In August 2015, at the request of Cooper and the Commissioner of Banks, the court banned the companies from making or collecting on loans in North Carolina.

Cooper said he was encouraged by a proposed new federal rule that gives more protections to borrowers nationwide but warned the rule is weaker than North Carolina’s law which outlaws payday lending. Currently there is no federal rule on payday loans. Though the proposed rule doesn’t preempt state law it fails to cap interest rates or give consumers the same protections afforded to members of the military.

“Though our state’s laws are stronger, tougher rules for payday lenders just over state lines could help protect North Carolina borrowers who seek loans outside state borders,” Cooper said.

In the Western Sky and CashCall consent judgment issued by Special Superior Court Judge Gregory P. McGuire, the defendant companies are ordered to: Read more


On HB2: Love and compassion winning, McCrory losing

LGBT rainbowIt’s increasingly clear that, much as he and his allies did with the battle over marriage equality, Gov. Pat McCrory is losing the fight over HB2 and its promotion of discrimination against LGBT North Carolinians. The latest signal comes from the Governor’s home town, where, the Charlotte Observer reports, the Guv has been reduced to whining that education officials in the state (including UNC President and GOP loyalist Margaret Spellings) are ignoring his demands that they discriminate against transgender students.

Earlier this week, the Charlotte Mecklenberg school system announced that it would follow Spellings’ lead and federal court directives to honor the gender identity of students. As CMS Superintendent Ann Clark said at the time:

“This is about courage, understanding and compassion. These are our children. These are the community’s children.”

Not surprisingly, this has gotten the Guv’s dander up. Yesterday, he released a statement accusing CMS of changing “basic expectations of privacy for students” and “purposely breaking state law.”

It’s not clear what McCrory will do next. Perhaps he will try to bring a lawsuit against CMS, but, of course, if he does that, he’ll be bucking a powerful trend in the the federal courts, which have been siding with those who would combat LGBT discrimination. Like George Wallace, Orval Faubus  and other pro-discrimination southern governors of the past, McCrory is clearly fighting a losing battle here against love, tolerance and progress.

Let’s hope McCrory sees the light sometime soon, but for now, his stubborn obstructionism is enough to call to mind Joseph Welch’s famous 1954 take-down of Joseph McCarthy during the senator’s anti-communist witch hunts:

“You’ve done enough. Have you no sense of decency, sir? At long last, have you left no sense of decency?”

Note: For those interested in continuing the effort to help open the Governor’s eyes, there will be a “Rally Against Hate” this evening in Raleigh. This is from the event’s Facebook page:

“Join us by Bicentennial Plaza in Raleigh THIS Wednesday, June 22, at 6:30pm for a Rally Against Hate. This rally will be an opportunity to remember the tragedy in Orlando and how it has impacted our community in North Carolina. We will also show our determination to fight against harmful legislation that impacts the lives of LGBTQ North Carolinians by calling for full repeal of HB2 and to pass needed protections for LGBTQ residents and visitors.With less than two weeks until the legislature adjourns, we must be louder than ever. Bring your flags, banners, and signs; invite your friends and family; and let’s come together in Raleigh as a community to stand united against hate in our state.”


Higher ed group blasts state Senate’s income tax constitutional amendment

In case you missed it, be sure to check out the excellent essay that appears on the on the website of the group Higher Education Works regarding the North Carolina Senate’s dreadful proposal to enact a constitutional amendment capping the state income tax. As the essay notes, the proposal would usher in “government by auto-pilot” that would likely prove disastrous to our already damaged colleges and universities:


The General Assembly’s war on sustainable energy continues

windfarmIn case you missed it — or have simply become numb to the repeated actions in this vein — it’s worth noting that the North Carolina Senate took yet another ill-advised step to undermine the move to sustainable energy yesterday.

This statement was distributed last night by the North Carolina chapter of the Sierra Club:

Senate Bill Blows Against Wind Industry: Measure Would Undercut Planned Wind Energy Projects in North Carolina

This evening the NC Senate gave final approval to H 763, a measure that would give more than one state agency the ability to deny permits for new wind energy projects. The bill adds several new layers of regulation to potential applicants for wind farm permits to legislation adopted in 2013. The NC Department of Environmental Quality already has the ability to deny permits for wind development.  Wind developers must also separately secure clearance from the Federal Aviation Administration.

The measure now goes to the House for a concurrence vote.

H 763 defers to maps apparently prepared at the request of the state’s Military Affairs Commission, which is housed in the Department of Commerce; not the Department of Military and Veteran Affairs.  It appears that a report on the process and protocol by which the maps were developed was never presented to a legislative committee.  It’s also unclear if there is a publicly available report on the development of the report, including the charge given to the private firm that developed the maps.

After the Senate’s vote, Melissa Dickerson, Coastal Coordinator for the NC Sierra Club issued the following statement:

“We don’t need to look any further than the Atlantic Wind project in northeastern NC to see that wind farms and the military can come to agreement on how to coexist.  It’s disappointing that the Senate seems to think we have to choose.  With tonight’s vote, the Senate appears to seek an immediate halt any new wind farms in eastern NC, despite the apparent economic and environmental benefits to rural counties.”

“Communities in eastern North Carolina should be able to attract investment from the wind industry through the comprehensive permitting process adopted by the legislature in 2013.  That process requires input from the military.  The proposed legislation adds unnecessary complexity and uncertainty for businesses navigating the wind permitting process.”

“North Carolina is a national leader in clean energy development.  Our onshore and offshore wind resources have the potential to ensure that we can responsibly meet our energy needs without creating more coal ash or air pollution.”

Meanwhile, check out this fine editorial on the same subject from this morning’s edition of Raleigh’s News & Observer which explains why investment in wind energy ought to be a no-brainer.


Senate fails to curb gun violence; Burr, Tillis once again do the NRA’s bidding

Last night, the U.S. Senate failed for the umpteenth time to pass modest gun safety legislation. Sadly, both of North Carolina’s senators once again bowed to the pressure of the gun lobby.  In response, the good folks at North Carolinians Against Gun Violence issued the following statement:

NC Senators Vote Against Gun Background Checks, Keeping Terrorists from Buying Guns

On Monday, June 20, North Carolina’s two senators cast votes to help kill two amendments to reduce the dangers of gun violence.  Both Richard Burr and Tom Tillis voted against universal background checks for gun purchases and a measure to strictly limit guns sales to known terrorists.

“These were votes to keep the unacceptable status quo of gun laws,” said Becky Ceartas, director of North Carolinians Against Gun Violence [NCGV].  “It’s shocking that these harmful votes were cast in the wake of the worst mass shooting of our history in Orlando and, adding to the outrage, they came almost one year to the day since of the killings in the Charleston church.”

“In casting these votes, our senators showed their true colors.  They chose not to put safety of our families first, pushing that aside to demonstrate their loyalty to the gun lobby,” Ceartas said.  She pointed out that the National Rifle Association has given Sen. Tom Tillis $4,418,012 and contributed $805,219 to Sen. Richard Burr.

“Action must be taken.  It’s now up to Speaker Paul Ryan and the U.S. House of Representatives to vote on similar amendments for background checks and bans on terrorists seeking to buy guns.”

The House is scheduled to take a Fourth of July break at the end of this week.  Ceartas called for Rep. Ryan “to do the right thing and have the House vote on these life-saving measures.  The representatives want to go home and see families and work their districts over the Fourth, but now of all times, votes on these life-or-death measures must be a first priority.”

Four proposed gun measures were voted down Monday along party lines for the most part.  Sen. Christopher Murphy offered the proposal on background checks, and Sen. Diane Feinstein sponsored the amendment curtailing gun sales to known terrorists.  The other two amendments were one by Sen. Charles Grassley to allow certain psychiatric patients to buy guns on the day they are released from mental institutions; it also would allow military veterans suffering from mental illnesses to buy guns.  And Sen. Jon Cornyn’s proposal was to allow a suspected terrorist to buy guns unless the U.S. Attorney General could prove in court that the person had committed, or was about to commit, an act of terrorism. In addition, the gun applicant would have had the right to contest the evidence against him in court.  The amendment would have required these things to be done within five business days.

Senators Burr and Tillis voted for the Grassley and Cornyn amendments. “Their votes,” said Ceartas, “were a sad attempt to try and fool the American public into believing they were doing something about gun violence.  They weren’t.  They acted in bad faith and we will not let this stand.”