Book Read Free

Broke, USA

Page 39

by Gary Rivlin

Check Cashing, Inc., 61

  check-cashing industry, 7, 20, 24, 26–27, 31, 53, 122, 126, 178, 256, 262–67, 272, 281, 308, 315, 319, 321

  Las Vegas convention of, 21–23, 32–35, 169, 262–73, 316–17

  Check Exchange, 291

  Check Into Cash, 72–73, 76, 80–84, 122–23, 161, 187, 224, 293, 332

  IPO attempt of, 116–17

  profits of, 73, 84, 116, 311

  Checklist, 265, 270, 314, 320

  Check ’n Go, 78, 128, 161, 186, 187–98, 224, 254, 258, 278–79, 291, 293, 310, 316

  Checkpoints, 197

  CheckSmart, 254, 255, 256, 273, 276, 279, 280–81, 291, 293

  Cheney, Dick, 324

  Chicago, IL, 139

  Chicago Mercantile Exchange, 29

  Chrysler First, 56–57, 153, 155

  churning, see flipping

  CIBC Oppenheimer, 116–17

  CIGNA Insurance, 169

  Cincinnati, University of, 173

  Cincinnati Enquirer, 278–79

  Citibank, 4, 57, 154

  Citicorp, 148

  CitiFinancial, 149, 152, 154–55, 156–57, 162, 164, 165, 203, 240, 293, 297, 299, 305, 323

  Citigroup, 136, 148, 149, 168, 202, 203, 247, 294, 303, 322, 323, 327

  annual shareholders meeting of, 163

  Associates acquisition by, 143–67

  “referring up” program at, 156–57

  settlements and fines paid by, 165

  Citylight Bullet Proof, 270

  Clay, Martha and Larry, 248–50

  Cleveland, Ohio, 239–40, 291

  Cleveland, Tenn., 60, 64–65, 66–67, 69, 76–77

  Cleveland Plain Dealer, 244, 256, 276, 278, 315

  Clinton, Bill, 56, 87, 97, 118, 137, 215

  closing costs, 11–12

  Coakley, Martha, 298

  Coalition for Fair and Affordable Lending, 207–8

  Coalition for Responsible Lending, 113, 152, 155

  Coalition on Homelessness and Housing in Ohio (COHHIO), 139, 241, 244, 275, 283, 284, 286

  Coleman, Joseph, 23–24, 28, 35, 272

  collateralized debt obligations, 85, 320, 323

  Collier, Annie Lou, 36, 41–42, 43, 47

  Colorado, 124, 231

  Columbus, Ohio, 244–49, 251

  Columbus Dispatch, 245–46, 247, 249, 259, 276, 283

  Commercial Credit Corporation, 145–49, 152–53

  community development zones, 132

  Community Financial Services Association (CFSA), 126, 259

  Community Legal Services, 140

  Community Reinvestment Act (CRA), 85, 101, 324

  Community Reinvestment Association of North Carolina (CRA-NC), 111

  CompuServe, 295

  Congress, U.S., 36, 55–56, 87, 208, 296, 302, 313, 319

  see also House of Representatives, U.S.; Senate, U.S.

  Congress on Racial Equality, 278

  consumer advocates, 23–24, 40–41, 63, 87–88, 115, 123

  see also housing activists Consumer Credit Counseling Services, 132, 304, 306–7

  consumer debt, 29

  Consumer Federation of America, 123, 183

  consumer finance companies, 4, 5, 51–52, 56–57, 58, 111, 142, 146, 156, 204, 295

  Consumer Financial Protection Agency (CFPA), 320–22

  consumer protection laws, 80

  Consumer Rights League, 233

  Control Data, 146

  Cooper, Roy, 113–14, 161, 165, 215–16

  Corbett, Keith, 98, 114

  couch payment, 75

  Countrywide Financial, 29, 207, 212, 214, 233, 247, 296, 297, 298, 299, 322, 324, 325

  Creative Loafing, 205

  Credit Bureau Services, Inc., 70

  credit card debt, 6, 8, 176–77

  credit cards, 5, 8

  fee harvesting and, 223

  interest rates on, 8, 28

  marketing of, 317

  reform and, 319

  subprime, 28, 31, 171, 175–76, 222, 223, 294, 320

  see also debit cards

  credit default swaps, 85, 297, 305

  credit insurance policies, 12–13, 17, 52, 57, 108, 115, 136, 139, 150, 152, 156, 162, 164–65, 295

  credit rating agencies, 212–13, 297, 301–2

  credit scores (FICO scores), 11, 329

  Credit Suisse First Boston, 151

  credit unions, 130, 190, 283, 286, 326

  Cuomo, Andrew, 137, 201, 330

  Daddy’s Money Pawn Shop, 262–66

  Daley, Richard M., 139

  Dallas Morning News, 149–50

  Dann, Marc, 254, 260–61

  Dash, Eric, 212–13

  data mining, 317

  Daugherty, Jack, 25–26

  Daugherty, Peggy, 251–52

  David (payday borrower), 195

  Davidson College, 91–92

  Davis, Allen, 77, 120

  Davis, David, 78, 84, 120, 128, 161, 168, 186, 187, 190, 254

  Davis, Jared, 77–79, 84, 120, 121, 126, 127, 128, 161, 168, 186–88, 197–98, 254, 278, 279–80, 287

  Day, Kathleen, 222–23, 236, 319

  Dayton, Ohio, 1, 3, 7, 9, 16, 38, 128–42, 169–70, 181, 288–93, 304–9

  affordable housing fund in, 132

  African-American neighborhoods in, 307–8

  anti-predatory lending bill in, 140–42

  appraisal inflation in, 301

  big-box store abandonment of, 292

  first-ring suburbs of, 289, 290

  foreclosures in, 135–36, 290, 292, 304, 308

  poverty in, 131–32

  predatory lending in, 132–42, 163–64, 239–41

  Predatory Lending Solutions Project in, 15, 134–35, 141, 301

  rental vacancy rate in, 131

  Dayton, University of, 129

  Center for Business and Economic Research of, 135

  Dayton Black Cultural Festival, 135

  Dayton City Commission, 129

  Dayton Daily News, 133, 134, 140, 141, 170, 240, 287, 292

  debit cards:

  bank fees for, 28

  prepaid, 27, 264, 268, 271, 272

  debt collection agencies, 23, 61–62, 69–70, 329

  debt consolidation business, 329

  Dedman, Bill, 39

  Delaney, Janet, 122

  Delco, 293

  Dell, Michael, 173, 174

  Delta Funding, 154

  deregulation, 52, 85, 139

  Deutscher, Beth, 132, 301, 304, 327

  DeVault, Lynn, 258, 261, 320

  Dezenhall, Eric, 219, 234

  Dezenhall Resources, 219–20, 223–24

  Diamond Castle, 280–81

  DiNardo, Nick, 253

  direct deposit, 267

  Dodd, Christopher, 322

  Dominion Homes, 246–47

  Dow, Tony, 67

  Durbin, Dick, 272

  Durham, NC, 87, 100

  Dutton, Geoff, 245–46

  Eakes, Marshall, 89

  Eakes, Martin, 33, 63–64, 85–88, 92–103, 105, 106, 108–9, 121, 208, 226, 234–35, 251, 286, 304, 324, 325

  attacks on, 232–34, 282

  background of, 88–91

  billing policy of, 92–93

  in payday lending fight, 88, 123, 159–62, 187, 218–19, 220–21, 223, 227

  phone call to Associates by, 108–9

  as pied piper for responsible subprime lending, 327–28

  in predatory lending fight, 110–15, 137, 139, 143–44, 151–53, 156, 157, 158–59, 163, 165–67, 222, 248

  earned income tax credit, 171–72, 183, 266

  Eaton, James, 60–62, 70, 72, 73

  Economist, 42

  Emory University, 38

  Equal Justice Foundation, 248

  EquiCredit, 57, 111, 153

  equity, 96

  stripping of, 52, 136

  Eritrea, 168–69

  Ernst & Young, 226–27

  escrow fees, 12

  Ethiopia, 16
8–69

  Europe, payday lending in, 310–11

  explodable ARMs, 298, 323

  Extended Stay Hotels, 119

  EZ Refund, 265

  Fair Housing Center, 131, 132

  Fair Isaac Corporation, 11

  Faith, Bill:

  background of, 242–45

  in payday lending fight, 250–53, 258–61, 274–75, 276, 278, 280, 283–84, 285–87, 316

  in predatory lending fight, 139, 239, 240, 241, 245, 247, 248–50

  Fannie Mae, 12, 23, 58, 85–86, 103, 201, 210, 324–25

  Fay, Greg, 224

  Federal Deposit Insurance Corporation (FDIC), 87, 158, 272

  Federal Housing Administration (FHA), 247

  Federal Loan Modification Center, 328–29

  Federal Reserve, 29, 31, 36, 46, 56, 58, 87, 202, 208, 230, 232, 302, 318

  Federal Trade Commission (FTC), 150, 152, 162–63, 164, 165, 298, 329

  Feehan, Dan, 227

  Ferguson, Helen, 136

  FICO scores, 11, 329

  Fifth Third, 132

  financial crisis of 2008, 18, 22, 23–24, 29, 30, 33–34, 85, 88, 324

  financial literacy, 328

  “Financial Quicksand” (CRL report), 230–31

  Financial Service Centers of America (FiSCA), 23, 28, 33

  see also National Check Cashers Association First American Cash Advance, 161

  First Deposit, 175

  First Premier Bank, 28

  First Union, 57, 135–36, 153, 158, 168, 202

  Fitch Ratings, 212

  fix-it loans, 105–6, 107

  Fleet Bank, 42, 57, 211

  class-action suits against, 43, 44–46, 47–48, 49, 55

  foreclosures by, 49–50

  Fleet Finance, 42–48, 49–50, 53–56, 205

  Fleishman-Hillard, 283

  flipping, 52, 57, 104–5, 136, 149–50, 206, 231, 248–49

  “Flipping Frenzy” (Dutton), 245–46

  Florida, 231, 313

  Floyd, Kathy, 210

  Forbes, 111, 131

  Ford Foundation, 103

  Ford Motor Company, 57, 104, 112

  foreclosures, 19–20, 42, 44, 48, 49–50, 58, 101, 135–36, 202–3, 210–11, 213–14, 229–30, 245–46, 247, 290, 291, 292, 295, 300, 304, 308, 323, 324

  Fort, Vincent, 199–203, 205–6, 209–10, 211, 213, 214, 296, 326

  Fort Bragg, NC, 229

  Fortune, 145

  Fox, Jean Ann, 123, 183, 185

  Franchise Times, 182

  franchising, 181–82

  Frank, Barney, 321–22

  Frank, Robert H., 226

  Freddie Mac, 23, 58, 212, 324–25

  Fringe Banking (Caskey), 231–32

  Full Spectrum Lending, 298

  funeral business, 28

  Gabelhouse, Zach, 270

  Galloway Ridge, 246

  gambling, 317

  Gates, Bill, 173, 174, 177

  Gates, Bill, Sr., 163

  General Electric, 303, 322

  General Motors, 289, 292, 303

  Georgia, 199, 232

  anti-predatory lending legislation in, 200, 201–2, 203, 206–17, 223, 296

  foreclosures in, 213–14

  subprime lobbying in, 207–8

  Georgia Association of Mortgage Brokers, 202

  Georgia Fair Lending Act, 326

  Georgia Mortgage Center, 49

  Gerecke, Sarah, 308–9

  Golden West Financial, 235, 238

  Goldman Sachs, 25

  Goodman, Peter, 328–29

  Gottlieb, Steve, 37

  Gramlich, Edward, 303

  Gramm, Florence, 137, 139

  Gramm, Kenneth, 137, 139

  Gramm, Phil, 137–39

  Gramm-Leach-Bliley Act, 138, 148

  Gramm-Rudman-Hollings Act, 138

  Grassley, Charles, 136

  Great Britain, 25, 310

  Great Depression, 29, 33

  Green, Willie, 228, 230–31, 256

  Greensboro, NC, 89, 90

  Greenspan, Alan, 56, 302–3, 318, 319

  Gregoire, Christine, 17

  Gross, Daniel, 326

  “Growth of Legal Loan Sharking, The” (Fox), 123

  Grundy County, TN, 69

  Gulley, Wib, 93–94, 98, 114, 159, 160

  Gulyas, Esther, 178–79

  Haas, Greg, 244, 283–84

  Hagan, Robert, 253–54, 276–77

  Hamill, John, 54

  H&R Block, 169, 171, 172, 174, 175, 177, 178–79, 183, 247, 270, 293, 294–95, 301

  Option One subsidiary of, 135, 212, 296, 298, 300, 301, 305, 322

  Harrah’s, 316–17

  Harris, Bill, 249, 250, 278

  Harris, Sandra, 227, 228

  Harris, Shari, 122

  Harvard Business School, 55

  Hastings, Charles, 50

  Hauser, Larry, 316

  Hawke, John D., Jr., 214–17

  Hazard, KY, 147

  Heartland Cash Advance, 316

  Hewitt, John, 172, 177–79, 180, 182

  Higgins, Jim, 32–33, 316, 317

  “high cost” loans, 206, 208, 212, 318

  Hirtle, Stan, 133

  Hixson, Steve “Doughball,” 60–61, 62, 117

  Hodges, Mike, 224, 268–69

  Hodges, Tina, 269

  Hogan, James, 48

  Home Affordable Modification Program, 323–24

  Homebuyer Protection Act (Ohio), 248, 249–50

  Home Defense Program, 40, 41–42

  home equity loans, 5, 6, 13, 15, 16, 48–50, 136, 297, 306

  homeless shelters, 100

  Home Ownership and Equity Protection Act (HOEPA; 1994), 56, 57, 156, 206, 240

  Home Ownership Center of Greater Dayton, 301, 327

  home-repair scams, 41, 43, 47–48

  Homewise, 326–27

  Household Finance Corporation, 3–7, 8–14, 15–16, 19, 29, 51, 52, 136, 146, 157, 203, 205, 240, 295, 296, 297, 303, 324, 325

  class-action suit against, 16–18

  closing of, 323

  HSBC acquisition of, 18–19

  House of Representatives, U.S., 54, 57–58, 321

  Banking and Financial Services Committee of, 137, 143

  Oversight and Government Reform Committee of, 319

  see also Congress, U.S.

  housing activists, 14–16, 17, 40, 46–47, 50, 140, 157–58

  public awareness campaigns by, 15, 46

  Housing and Urban Development Department, U.S., 14, 137, 156, 201, 247

  HSBC, 18–19, 57, 303, 304, 323

  Huber Heights, OH, 293

  HUD-1

  disclosure form, 134

  Hudson, Mike, 105, 297

  Husted, Jon, 260, 278

  Hyatt, Joel, 295

  Illinois, 78

  IMC Mortgage, 149

  Indiana, 73, 121, 124

  industrial lenders, 204

  Innis, Roy, 278

  Inside B&C Lending, 37

  Instant Refund Tax Service, 175

  instant tax refund loans, see refund anticipation loans (RALs)

  Instant Tax Service, 125, 169–85, 307

  franchising of, 181–82

  insurance:

  credit, 12–13, 17, 52, 57, 108, 115, 136, 139, 150, 152, 156, 162, 164–65, 295

  household, 3

  life, 57

  insurance companies, 4, 5

  integration, 90

  interest rates, 4, 5, 6, 33, 153–54, 204, 321

  on credit cards, 8, 28

  on mortgages, 9–11, 12, 13, 51

  of pawnbrokers, 25, 26

  on payday loans, 61, 62, 76, 220, 253–54, 259, 260, 272–73

  on RALs, 184–85

  on subprime loans, 12, 13, 41–42, 44, 48, 49, 50, 107, 111, 115, 141, 156, 272–73

  Iowa, 215

  IRS, 171

  Issue 5, 261, 273, 274–87, 289, 312

  Ivey, Ralph and Ethel, 112, 205


  Jackson, Jesse, 131

  Jackson, Ormond and Rosie, 136

  Jackson Hewitt, 27–28, 169, 172, 177, 178–79, 180, 182, 186, 289, 291, 293

  Jacobson, Jeff, 249–50

  Japan, 150, 151

  J. C. Bradford & Company, 75

  Jent, Terrence, 258–59

  JLL Partners, 26

  Johanson, Peder, 277

  Johnson, George Dean, Jr., 118–19, 120, 121, 125, 225

  Jones, W. A. “Bill,” 67, 69–70

  Jones, W. Allan, Jr., 33, 34, 60–73, 76–77, 78, 84, 85, 88, 89, 116–17, 120, 121, 123, 128, 160, 161, 168, 169, 186–87, 224, 237–38, 257–58, 278–79, 286, 289, 290, 310–12, 313, 320, 325, 330

  class-action suits against, 80

  diversification by, 315, 331–32

  education of, 65–66

  expansion by, 81–82

  home of, 79–80

  lobbying by, 80–81

  philanthropy of, 67–68

  reputation of, 67–68, 70

  wealth of, 71–72

  wiretapping charges against, 68

  Jones Airways, 71, 311

  JPMorgan Chase, 25–26, 27, 28, 176, 185, 303, 321, 322

  judicial foreclosures, 210–11

  Justice Department, U.S., 69, 150, 296

  Just Right Auto Sales, 331

  Kahr, Andrew, 175–76

  Kansas, 263–65

  Kansas City, MO, 53

  Keest, Kathleen, 7, 50–54, 57, 58, 295, 299, 302–3, 319

  Kemp, Jack, 233

  Kentucky, 73

  Kettering, OH, 289, 291, 306

  KeyBank, 132

  Keyes, Alan, 278

  King, Uriah, 226

  King & Spalding, 47

  Kirk, Tom, 255

  Kirkpatrick, Joe, 73–74

  Klein, Gary, 16

  Kmart, 83

  Kroger, 83

  Kubiniec, Gail, 152

  Kucan, John, 227

 

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