BATON
THURSDAY, JULY 24, 2014
State Audit Of OFI Shows Need For Regulatory Overhaul On Payday Lending An audit released this week by the State Legislative Auditor found major compliance failures in regulating the payday lending industry on the part of the agency charged by the state legislature to oversee payday lending, the Office of Financial Institutions (OFI). These failures are very troubling and show that an agency tasked to protect the public has been failing in its job. The failures of OFI’s oversight identified by the audit are systematic and widespread. It is a scathing review, and it shows the need for a complete overhaul of payday lending oversight, both at the regulatory and legislative level. At the same time, the very fact that this audit exists is itself an important development. It shows that some state officials finally are starting to pay attention to what citizens have been saying about payday lending abuses for years. Together Louisiana commends Daryl Purpera and his staff for taking a serious look at an important issue. Among other problems, the audit found that: • OFI’s examination procedures do not detect whether payday lenders renew or “rollover” loans without the borrower paying down 25% of the loan amount as required by state law. (The audit identified 318,489 instances of borrowers being charged approximately $7.3 million in fees during fiscal year 2013 for closing and opening a loan on the same day.) • OFI’s examination procedures do not detect whether payday lenders are using their multiple locations to avoid OFI scrutiny and issue borrowers multiple payday loans on the same day instead of one consumer loan which has a lesser fee. • OFI’s examination procedures do not detect whether payday lenders are reducing loan fees when borrowers pay off their loans within the first five days as required by state law. • OFI did not assess any penalties on payday lenders for violating state law from January 1, 2010 through June 30, 2013, despite citing 8,315 violations, including 8,082 major violations. Major violations involve lenders overcharging borrowers.
ROUGE,
LOUISIANA
VOL. 39 • NO. 45 • FREE
A PEOPLE’S PUBLICATION
World Changers Make Their Mark On Baton Rouge
No Vote on ‘Fairness Ordinance’ Due to Time Limits BATON ROUGE, LA After hearing more than three hours of opinions both for and against, the East Baton Rouge Metro Council adjourned its meeting without voting on the “fairness ordinance’ due to time limits. The council voted to extend the meeting past 8 p.m. to give residents opposed to the ordinance a chance to voice their opinions just like those in support of the ordinance had done. But by law the meetings cannot go past 8:30 p.m. so the meeting was adjourned. “We had the votes. It would have been defeated,” said Council Member Buddy Amoroso. “It was a filibuster on their attempt to postpone until August 13. You saw how many people were here tonight. I thought it was an injustice to the public not having a vote.” Councilman John Delgado
countered the vote delay will allow council members two weeks to discuss the issue and come back prepared when the it meets again. “I think it will give them time, two weeks, to think about this,” said Delgado. “Think about the impact it will have on the citizens of Baton Rouge. Think about all the testimony we heard from tonight. All the business leaders and 62 percent of public that supports this ordinance.” The ordinance was proposed by Councilwoman C. Denise Marcelle. Marcelle’s proposal would make it illegal in Baton Rouge to discriminate against veterans, seniors and members of the gay and lesbian community, when it comes to housing, employment and public accommodations. Opponents of the ordinance See NO VOTE, on page 2
Alpha Center for Education Dedicated in Memory of Brother Donald C. Wade
One hundred and eighty student volunteers from the faithbased World Changers program are doing their best to make a difference in Baton Rouge during the week of July 14-18.
The high school and college students are painting and making minor repairs to 35 homes of disadvantaged and elderly Baton Rouge in the area bounded by North 72nd Avenue/Monarch Ave to Mohican-
Prescott, and North Foster Drive/ Lacey Street to Scenic Highway. The group is part of the 15,000 World Changers that are See WORLD CHANGERS, on page 2
BATON ROUGE, LA — The Beta Iota Lambda Chapter of Alpha Phi Alpha Fraternity, Inc., will dedicate the Alpha Center for Education in memory of the late Brother Donald C. Wade on Saturday, July 19, 2014. The late Bro. Donald C. Wade was one of the founding members who developed the Alpha Center for Education. Over the years the Alpha Center for Education has hosted a number of enrichment and education programs for children like tutorial programs, programs with The Big Buddy Program, Pinky’s Dance Academy, the Young Emerging Leaders of Louisiana Program and many others. The
Brother Donald C. Wade Alpha Center for Education has also served as a focal point for community outreach for senior See WADE, on page 2
Louisiana Consumers Getting Nearly $5 Million in Refunds
WASHINGTON -- This summer 119,720 Louisiana health insurance customers are due to receive $4.94 million in refunds due to a requirement under the Affordable Care Act that insurers spend at least 80 percent of premiums on patient care and other health related activities. The refunds average $71 per family, according to a report being released Thursday by the Department of Health and Human Services.
The biggest refunds are going to customers in the individual market, with $1.1 million going to 5,986 consumers, or $230 per family. The smallest refunds are going to consumer in large group markets, $56 per family. The 80-20 rule is designed to cut the amount consumers pay for profits and red tape. “The 80-20 rule is bringing transparency and competition to the insurance market, ensuring
that consumers are continuing to receive value for their premium dollars,” said HHS Secretary Sylvia Burwell. “Standards like these created under the health care law are providing Louisianians with immediate savings and are helping to keep costs down over the long-term.” Nationally, insurers are issuing $330 million in refunds this summer to 6.8 million consumers. The refunds average $80 per family.
The Affordable Care signed up over 8 million people via the law’s exchanges and marketplaces for 2014, including over 100,000 in Louisiana. On Tuesday, two appellate courts reached total opposite conclusions on legal challenges over whether federally operated exchanges in 36 states, including Louisiana, could offer subsidies to consumers who meet income standards. A Washington D.C. court said that the law, as written,
doesn’t allow it, while a Richmond, VA. Appellate court said it was clear the intent of Congress was to allow subsidies -- whether through state operated, or federally operated exchanges. The Justice Department has promised to appeal the ruling in Washington D.C. to the full D.C. Circuit Court of Appeals. If that appeal is successful, it’s likely the issue of subsidies will be See REFUNDS, on page 3
See LENDING, on page 3
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LOCAL NEWS
LOCAL NEWS
BUSINESS NEWS
RELIGION
Greater Mt. Carmel B.C. will sponsor its Annual Back to School Program on August 1 & 2. The program has been expanded this year to include two components...See Page 4
INDEX
ENGINEERING INSTITUTE The Engineering Summer Institute The Greater Baton Rouge Food Bank is in dire need of donations this summer. During the summer, officials say donations typically drop, but it is also time when they see more people in need. ..See Page 2
(ESI) celebrated 40 years of existence in the College of Engineering at Southern University and A&M College at its Annual Closing Ceremony...See Page 3
BR NAMED PLAYFUL CITY USA
Baton Rouge is one of 212 cities and towns to earn recognition from the national nonprofit KaBOOM! as a 2014 Playful City USA community for providing children with ample opportunities for play...See Page 2
BASF WELCOMES 22 STUDENTS BASF is providing 22 chemical and
mechanical engineering students the opportunity to spend this summer working as interns at its Geismar, Louisiana site - the global company’s largest manufacturing facility in North America...See Page 5
Local News...............................2 State News...............................3 Religion....................................4 Business....................................5 Classifieds.................................5
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