Consumed by payday loans: State legislators offer haven for lenders deemed ‘predatory’, By Karen de Sá, October 30, 2011, San Jose Mercury News: “Facing government crackdowns around the country, payday lenders are thriving in lightly regulated California, where they lure hundreds of thousands of desperate borrowers a year despite punishing, triple-digit interest rates. Seventeen states and the U.S. military have effectively banned payday loans, which attract low-income borrowers who need a cash advance on paychecks. Georgia has declared payday lending to be felony racketeering. But in California, payday storefronts outnumber Starbucks coffeehouses. Neon-splashed businesses touting slogans like ‘Cash as Easy as 1, 2, 3!’ promise hassle-free, short-term loans, while few borrowers heed the fine print: A two-week loan will saddle them with what amounts to an annual interest rate of 460 percent. Now, the multibillion-dollar industry is looking for more help from a state Legislature that has protected payday lenders for years…”
Month: October 2011
States and No Child Left Behind Waivers
After-school tutoring likely to end as dozens of states pursue No Child Left Behind waivers, Associated Press, October 30, 2011, Washington Post: “Dozens of states intend to apply for waivers that would free their schools from a federal requirement that they set aside hundreds of millions of dollars a year for after-school tutoring, a program many researchers say has been ineffective. The 2002 No Child Left Behind law requires school districts that repeatedly fail to meet its benchmarks to set aside federal money to pay for outside tutors. But studies released in the past five years have found mixed results, at best, from the program. They say it has suffered from participation rates as low as 20 percent, uneven quality among tutors, a lack of coordination between tutors and teachers, poor oversight by the states and a prohibition against giving the lowest achieving students priority. Also, they say, there has been no connection between students’ success and tutors’ paychecks…”
Unemployment Benefits Payments – Oregon
Oregon overpays $392 million in unemployment benefits, fraud investigators swamped, By Richard Read, October 28, 2011, The Oregonian: “As unemployment insurance claims ballooned during the past few years, Oregon overpaid more than $392 million in benefits, a U.S. Labor Department analysis shows. That’s about 12 percent of almost $3.5 billion paid in benefits during the three years that ended in June. Some of the money went out the door innocently enough, paid before the Oregon Employment Department determined a recipient was ineligible for benefits. But other checks went to people who fraudulently collected unemployment without looking for work, or who found a job and continued claiming benefits. Either way, Oregon officials aim to recover the money, which originates from employers, not individual taxpayers. But they say fraud cases have swamped the Employment Department, where caseloads at one point reached 400 per investigator, up from 150 before the recession…”