Broke, USA
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Kursman, Jeff, 197, 278–79, 287, 316
LaFalce, John, 143, 144
Lambert, Bob, 189
Langley, Monica, 145, 146
Las Vegas, NV, 21–22
check cashers’ convention in, 21–23, 32–35, 169, 262–73, 316–17
Latinos, 86
Lauer, Jeanie, 177
Leach, Jim, 137
legal aid societies, 36, 37, 38, 39, 40, 42–43, 45, 48, 94
Lehman, Thomas, 232
Lehman Brothers, 34, 199, 297
Lewis, Ken, 214
liar (no documentation) loans, 298, 299, 318
Liberty Tax Service, 169, 172, 178, 180, 289
Lima News, 279
Limbaugh, Rush, 324
Linden Heights, 291
Little Rock, AR, 119
lobbying:
by payday lending industry, 80–81, 160, 219–20
by subprime lenders, 207–8, 222
Loftin, Mike, 326–28
Logan, Jimmy, 68–69, 80–81
Long, Jack, 40, 45, 55
Los Angeles, CA, 48
Los Angeles Times, 297, 322
“Losing Ground” (CRL report), 230
Lougee, Robert, Jr., 48
Lovelace, Dean, 128–31, 132, 140–42, 252
Loveman, Gary, 316–17
Ludwig, Sarah, 158
Lupton, Susan, 226
MacArthur Foundation, 97
McCall, Ken, 292
McCall, Robert, 49
McCarthy, Dan, 241, 251
McCarthy, Jim, 15–16, 38, 131–36, 137, 139, 141, 163–64, 240, 252, 288–89, 290–93, 297, 299, 300, 301, 304, 309
McCauley, Ginny, 228
McCoy, Patricia, 213
McDonald’s, 181, 314–15
Mack, Connie, 203
MacKechnie, Fraser, 266–68, 313
McKenzie, Steve “Toby,” 73–76, 77, 78, 79, 84, 119, 120–21, 128, 291, 313
Mackey, Frank J., 3, 4, 5
McLarty, Thomas, 203
McLin, C. J., Jr., 130–31
mandatory arbitration, 155, 165
Mansfield, OH, 187–98
Marathon Oil, 117
Marks, Bruce, 45–47, 53–55
Massachusetts, 298
MasterCard, 294
Mathers, Jerry, 67
media-induced settlements, 112
medical debt, 222
Medsker, Lyndsey, 219
Mel Jackson Tax Service, 178
Mendelson Liquidators, 292
Merchants of Misery (Hudson), 105
Merrill Lynch, 25, 34, 297
Meyers, Larry, 232
Miamisburg, OH, 289
Miami Valley Fair Housing Center, 14–16
microtargeting, 270
middle class, 293–94, 295, 308
Middle Tennessee State University, 66
military, U.S., 228–29
Miller, Hugh, 154
Miller, Tom, 215
Mississippi, 122
Missouri, 314
mobile home financing, 150
Modzelewski, Jeff, 255–56
MoneyGram, 23, 28
money orders, 321
Money Store, 153, 154, 158, 297
Moneytree, 73, 224
Montana, 314
Montgomery Ward, 179
Moody’s Investors Service, 212, 301–2
Moore, Thad, 93, 109
Moraine, OH, 291
Morgan, Donald, 232
Morgan Stanley, 212, 225
Mormino, Charles, 255
mortgage-backed securities, 86, 102–3, 199, 206, 212–13, 217, 237, 297, 325–26
Mortgage Bankers Association, 230, 323
Mortgage Banking, 153, 154
mortgage brokers, 209, 247, 295, 299–300, 308, 318, 328–29
Mortgage Loan Act (Ohio), 315–16
mortgages, 7
adjustable rate (ARMs), 51, 236, 237, 298, 299, 300, 302, 318, 323
balloon, 51, 56, 139, 206
Federal Reserve rules on, 318
interest rates on, 9–11, 12, 13, 51
modification of, 328
payoff quotes for, 106
prepayment penalties on, 15, 56, 115, 141–42, 155, 165, 206, 318
subprime, see subprime lending industry
Mozilo, Angelo, 214, 299
Mr. T’s Rental, 26
Murray, Terrence, 42, 55
Myers, Marcia, 1, 2–3, 8, 9, 13, 15, 16–17, 18, 19–20, 157
Myers, William “Tommy,” 1–3, 6, 7–15, 16–17, 18, 19–20, 33, 52, 139, 157, 293, 295
NAACP, 113
Nail ’Em! (Dezenhall), 219
Nasdaq, 25
National Association of Consumer Advocates, 40–41
National Association of Mortgage Brokers, 138
National Cash Advance, 119–20
National Cash Register, 291–92
National Center for Missing and Exploited Children, 197
National Check Cashers Association, 21–23, 78
see also Financial Service Centers of America
National City bank, 117
National Community Reinvestment Coalition, 319
National Consumer Law Center, 16, 50–51, 52, 183
National Credit Union Administration, 97
National Home Equity Mortgage Association, 207
NationsBank, 56–57, 81, 111, 120, 153, 155
NationsCredit, 111, 155
negative amortization, 236
Nehemiah Corporation of America, 246–47
Neighborhood Economic Development Advocacy Project, 158
Neighborhood Housing Services of New York City, 308–9
Nelson, Bill, 229
Nevada, 122
New Century Financial, 18, 58, 233, 296, 298, 299, 322
New Hampshire, 254, 312
Newhouse News Service, 48
Newsweek, 326, 327
New York, 183, 200, 213, 215
New York, NY, 158
New York Daily News, 308
New York State Banking Department, 158
New York Stock Exchange (NYSE), 25
New York Times, 18, 29, 37, 122, 148, 151, 153, 154, 162, 163, 203, 212, 236, 237, 328
New York Times Magazine, 144
Nixon, Richard, 171, 172
nonbank lenders, see consumer finance companies Norris, Floyd, 18
Norris, Kim, 282–83, 285
North Carolina, 110, 150, 166, 212, 318
anti-predatory lending laws in, 112–15, 139, 149, 203, 208, 215, 223
banking industry in, 113–14
payday lending in, 159–62, 166, 220, 232, 316
North Carolina Bankers Association, 114
North Carolina Mutual, 114
Obama, Barack, 272
financial reform and, 320–22, 323–24
odometer tampering, 69
Office of the Comptroller of the Currency (OCC), 158, 214–17
Ogbazion, Fesum, 168–85, 265, 307
background of, 168–69, 173
Ohio, 35, 84, 88, 123, 129, 139, 301, 302
consumer protection in, 244–45
foreclosures in, 245–46, 247, 291, 295
Issue 5 referendum in, 261, 273, 274–87, 289, 312
payday lending in, 189, 231, 251–61, 315–16
payday lending legislation in, 253–54, 260–61
predatory lending regulation in, 239–41, 248
preemption bill in, 239–41
subprime lending in, 245–48
Ohioans for Financial Freedom, 283
Ohio Association of Bankers, 249
Ohio Association of Financial Service Centers, 259, 279
Ohio Coalition for Responsible Lending, 252–53, 254
Ohio Consumer Finance Association, 240
Ohio Mortgage Funding, 141
Oklahoma, 127, 231
Option One Mortgage, 135, 212, 296, 298, 300, 301, 305, 322
Oregon, 254, 312
Orient, 243
<
br /> Osmond, Ken, 67
overdraft protection plans, 319
packing, of loans, 52, 136, 152, 156
Padgett, Joy, 247–48, 249
Paulson, Henry, 87
Paulson, John, 237–38
Paulson & Co., 237–38
pawnbrokers, 7, 23, 24–27, 31, 32, 53, 126, 178, 189, 222, 226, 227, 256, 262–63, 266, 281, 320, 331–32
interest rates of, 25, 26, 273
payday lending industry, 7–8, 20, 21, 22–23, 27, 31, 32, 34, 61–64, 68, 72–73, 76–79, 116–27, 128–42, 186–98, 204, 218–29, 263, 268, 306, 307–8, 319
activists’ opposition to, 88, 123–24, 231, 313–14
adverse media attention on, 122–23, 227–28
aggressive collections by, 258–59
alleged racism in, 290
APRs in, 123–24, 125
best practices pledge of, 255, 258
competition in, 224–26, 313, 314
cost of loans in, 194–95
crisis management firm hired by, 218–20, 223–24
CRL in fight against, 222–23, 224, 226–32
defaults in, 312
diversification in, 314–15, 321
Eakes in fight against, 88, 123, 159–62, 187, 218–19, 220–21, 223, 227
employee bonus policy in, 255
growth of, 224, 310–11
interest charged by, 61, 62, 76, 220, 253–54, 259, 260, 272–73, 312
Issue 5 referendum and, 261, 273, 274–87, 289, 312
in Kansas, 264–65
kickbacks in, 316
lobbying by, 80–81, 160, 219–20, 259–60, 314, 320
marketing by, 270, 316–17
military opposition to, 228–29
in Ohio, 189, 231, 251–61, 315–16
online, 272, 322
profits in, 122, 311–12, 314
public relations efforts in, 268–69
regulation of, 35, 320
repeat customers in, 192–93, 226–28, 230–32, 257, 270, 313, 316
Self-Help in fight against, 159, 187, 223, 226–29
size of average loan in, 231
studies supporting, 232
television ads by, 275, 277
trade association of, 126
underlying logic of, 328
Wall Street Journal profile of, 121
see also specific companies
payment protection plans, 150
see also credit insurance policies
payment shock risk, 301–2
payoff quotes, 106
pay-stub loans, 182
Peachtree Financial, 330
Pearce, Mark, 109–10, 115, 166, 221
Pelley, Scott, 227–28, 230–31
Pepsi, 2, 3
Perdue, Sonny, 211, 212, 213, 214
Philadelphia, anti-predatory lending law in, 140
Pick-A-Pay, 236
Pierce, Elizabeth, 226
Pizzolorusso, Glen, 303–4
points, on loans, 41, 44, 49, 52, 115
Policy Matters Ohio, 231, 254, 290
Politico, 230
poor people’s economy, 77
Poppe, Barb, 251
postdated check loans, 53
poverty, geography of, 177–78
poverty pimps, 24
predatory lending, 6–7, 15–16, 29–30, 36–59, 104–5, 110, 154, 318
advocacy groups opposed to, 17, 87–88, 139, 241, 244–45
class-action suits against, 16, 17–18
coinage of term, 45–46, 53
credit card debt and, 6, 8
in Dayton, OH, 132–42, 239–41
Eakes’s campaign against, 110–15, 137, 139, 143–44, 151–53, 156, 157, 158–59, 163, 165–67, 222, 248
elderly as targets of, 41–42, 133
interest rates in, 33
legislation against, 35, 112–15, 138–40, 200, 201–2, 203
see also subprime lending industry; specific types of lenders Predatory Lending Solutions Project, 15, 134–35, 141, 301
Predatory Lending Study Committee, 240
prepaid phone cards, 271
Primerica, 148
Primetime Live, 104, 112
Prince, Chuck, 151–53
Prince ton University, 92
private wealth management, 4, 5
Procter & Gamble, 169
property taxes, 3
prospecting, 270
Provident Bank, 77
Providian Financial, 175–76
Public Interest Research Group, 94
QC Holdings, 73, 76, 226, 293
Queens, NY, 308–9
Quik Cash, 194
quitclaims, 39
race relations, 45, 90–91
racketeering laws, 43, 45
Rainbow Coalition, 131
Raleigh News & Observer, 159, 234
“RAL Reform Agenda,” 183
Rand, Ayn, 319
Reagan, Ronald, 51
recession, 312
Reckard, E. Scott, 297
Reese, Evelyn, 287
refinancing, 8–13, 17, 58, 132, 134, 162, 206, 247–48, 297, 300, 306
see also flipping
refund anticipation loans (RALs), 7, 24, 27–28, 64, 168–85, 204, 222, 265–66, 271, 295, 303, 321
interest rates on, 184–85
Refund Today, 265
Rent-A-Center, 26, 75, 178, 186, 259, 289, 291, 293
rent-to-own stores, 7, 20, 26, 27, 31, 33, 53, 64, 74–76, 126, 204, 222, 330–31
Responsible Mortgage Lending Coalition, 207
reverse redlining, 40
Rheingold, Ira, 40–41
Rice, Suriffa, 130
Riegle, Donald, Jr., 54
Riepenhoff, Jill, 245, 246, 247
Riley, Dick, 118
risk, 4
risk-based pricing, 52, 156, 328
Rizzuto, Phil, 153
“Roadmap to Continued Record Profits in 1995, The,” 149–50
Roberts, Bennie, 104–5
Robinson, Jerry, 30–31, 74–76, 119, 122, 126, 313, 331
Robinson, Rachel, 248
Roedersheimer, Chuck, 299–300, 304–6
Rogers, Freddie, 105–8, 111, 113, 114, 139, 143, 222, 248
Rogers, John, 90–91
Rolland Safe Company, 270
Rosenthal, Cliff, 326
Rothbloom, Howard, 30, 37, 43–46, 47, 55, 248
Rothstein, David, 290
Rubin, Robert, 144
Sacramento Business Journal, 122
Safer, Morley, 50
salary buyers, 53
Salomon Brothers, 148
Sandler, Herbert and Marion, 165–67, 235–37, 238, 318
Santa Clara, 292–93, 308
Santelli, Rick, 29
Sarbanes, Paul, 143
Saturday Night Live, 237
Saunders, Ted, 273, 276, 279–83, 284–85
savings and loans, 296
Scalia, Antonin, 217
Schear, Lee, 128–29
Schlein, Steven, 218–21, 224, 225, 230, 234, 237, 254, 269, 277, 279, 321, 331
Schloemer, Ellen, 229–30
Schmaltz, Anita, 289, 290
Scoggins, Steve, 73, 81, 82–83
Scotland, 310
secret shoppers, 17
Securities and Exchange Commission, 226, 299
Self-Help Center, see Center for Community Self-Help
Self-Help Credit Union, 95–96, 97, 100
Sellery, Bill, 272–73
Senate, U.S., 321
Armed Services Committee of, 229
Banking, Housing and Urban Affairs Committee of, 54, 138, 143, 165, 229, 322
Special Committee on Aging of, 57, 136
see also Congress, U.S.
Senior Citizens Law Project, 45
Shackelford, Pam, 130
shade-tree mechanics, 69
Siegel, Jim, 257, 259
Siegel, Marc, 49
Simmons, Lynn, 36–37
Simon Wiesenthal Center,
296
Simpson, Erich, 224
single-premium credit insurance, see credit insurance policies
60 Minutes, 50, 56, 236–37
60 Minutes Wednesday, 220, 256
Skillern, Peter, 110–11, 159
Small Business Administration, 96
Small Loan Act (Ohio), 315–16
Smith, Adam, 253
Smith, Henry, 147
Smith, Troy, 48
Smith Barney, 148
Snow, Tony, 91, 233
Social Security, 47
South Carolina, 122
South Ozone Park, Queens, 308–9
SP Financial Services, 202
Spitzer, Eliot, 215, 217
spread, 146, 153–54
“Springing the Debt Trap” (CRL report), 231
Standard & Poor’s, 212, 302
Starr, Lillie Mae, 43–44, 47, 55
State Employees’ Credit Union of North Carolina, 228, 314–15
State Street Consultants, 283
Stein, Eric, 86
Stephens, Bill, 211
Stephens, Inc., 119, 122, 126, 280, 313
Stillwater Capital Partners, 245
Stock, Richard, 135–36
Strategic Public Partners Group, 283
“straw buyers,” 245
stretch pay loans, 130
Strickland, Ted, 252, 253, 260, 261, 278
strip malls, 83
subprime lending industry, 3–19, 28–30, 34, 39–40, 42–50, 86, 132–42, 245, 324
activist groups opposed to, 14–16, 17
African Americans as targets for, 30, 40, 43, 46, 50, 56, 111, 132, 133, 214, 308–9
banks in, 28, 40–41, 56–57, 58, 153, 202, 247, 303
congressional hearings on, 55–56, 58, 136, 222
definition of, 11