Margert in the News
State Assembly and
Nonprofits Urge Crackdown on Predatory Lending
The Full Story
By Dan Wiessner
The Journal News, Albany Bureau
(Original Publication: March 2, 2007)
ALBANY - Predatory and often illegal lending and
debt-collection services target minorities and the lower class, a coalition of
advocacy groups said yesterday.
The watchdogs said they want lawmakers to crack down on "abusive" financial
practices and ensure equal access to legitimate services. They claim some
lenders and debt collectors exploit customers through tax refund loans, "deed
theft" from mortgage lending to people whose homes are in foreclosure, and bank
account freezes placed on legally exempt money, such as Social Security.
"The growing array of high-cost and abusive financial services deprive New
Yorkers of their hard-earned assets and prevent low-income people from gaining
economic ground," said Sarah Ludwig of the Neighborhood Economic Development
Advocacy Project, one of 130 groups in New Yorkers for Responsible Lending.
Among the most questionable tactics cited are refund anticipation loans,
advertised as quick sources of tax-refund money. New Yorkers spent more than
$156 million on the loans in 2005, usually paying higher interest than allowed
by state law, according to Russ Haven of the New York Public Interest Research
Group.
Under state law, lenders cannot charge more than 25
percent interest on small loans. But companies offering "rapid refunds," as well
as payday and holiday loans, often charge 40 percent or more. The companies
circumvent state statutes by partnering with national banks or independent
tax-preparation companies, Ludwig said.
The loans are not only high-interest, but also tend to come with exorbitant
processing fees that aren't revealed until the loan has been granted, Haven
said.
"People are depending more and more on their tax refunds, but these short-term,
high-interest loans are harmful," said Assembly Consumer Protection Committee
Chairwoman Audrey Pheffer, D-Queens. The Assembly is working on legislation to
crack down on predatory lending, she said.
People in low-income communities who are strapped for cash often fall victim to
deceptive ads, the watchdogs said. More than 20 percent of taxpayers in
inner-city Rochester, New York City and Buffalo took out refund loans between
2002 and 2005, the groups said, even though the loans are generally paid only a
week or two before the tax refund arrives.
The same demographic faces increasingly aggressive
debt collection, advocates said.
"Among the worst abuses is creditors' freezing of bank accounts that contain
Social Security and other 'exempt' benefits, which are off limits to creditors
by law," said AARP volunteer Geneva Conway. "This causes severe hardship when
seniors and low-income New Yorkers find they don't have access to their accounts
and cannot pay their rent or buy food."
Conway called on the Legislature to enact "new laws that rein in unruly debt
collectors" and enforce federal laws that exempt Social Security from account
freezes. People who face such freezes often cannot afford legal fees to fight
them, she said.
"An increase in debt-buying (by lenders) leads to an
increase in (default) lawsuits. But people don't find out about these lawsuits
until their account has been frozen," said Gina Calabrese, a St. John's
University Law School professor. "Banks look the other way, even though they
know that some of the money is exempt" because of profits from bounced check,
overdraft and other fees, she said.
An explosion in mortgage foreclosures among low-income borrowers has been one of
the driving forces behind the increase in debt collection. According to the
Federal Reserve, lending to those with the highest risk of default jumped from 2
percent to 13.4 percent of the national mortgage market between 1993 and 2000.
Since 1993, foreclosures have risen by more than 70 percent, hitting low-income
borrowers the hardest.
Mortgage lenders often "prey" on homeowners facing foreclosure with lending
schemes that get them to sign over their deeds and forfeit home equity, the
advocates said.
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St. Mary Star of The Sea
Church Celebrates 150th Anniversary
The Full Story
March 2, 2007, The Wave
Four Bishops and more than 25 members of the clergy from the Brooklyn Diocese
gathered at St. Mary Star of the Sea Church in Far Rockaway on February 17th to
celebrate the 150th Anniversary of the church, the oldest parish in the local
area. Parishioners were greeted with flags of all the nations of those
who attend the church.
Bishop Nicholas DiMarzio, the head of the Brooklyn Diocese celebrated the
mass, which was in both English and Spanish. The mass was concelebrated by
Auxiliary Bishops Frank Caggiano and Octavio Cisneros as well as by retired
Bishop Thomas Daily and two previous St. Mary's pastors, Monsignor Denis Herron
and Father Sean Ogle.
View photo gallery.
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EmPower New YorkSM
Offering Financial Management and Energy Use Education Workshops throughout New
York State
The Full Story
LIFE News, Vol. 1 Issue 1, March 2007 (Low Income Forum on Energy)
The EmPower New YorkSM program, managed by the New York State
Energy Research and Development Authority (NYSERDA), provides cost-effective
energy reduction measures, emphasizing energy education as a means to assist
households in managing their energy costs.
As part of its strategy, the EmPower New YorkSM program is
providing 600 Financial Management and Energy Use Education workshops annually
throughout New York State. The two-hour workshops are conducted by the Cornell
Cooperative Extension and are open to all households regardless of income. They
can be a great asset to advocates and low-income
households alike.
Three workshop topics are offered. Save Energy,
Save Dollars focuses on low-cost and no-cost ways to save energy
and reduce energy bills. This workshop also introduces programs that can help
qualified households afford energy-efficiency improvements with subsidies,
low-interest loans or free services. Participants receive a free kit of energy
efficiency materials such as outlet and light switch gaskets and a high
efficiency faucet aerator.
Making Ends Meet shows
participants how to develop and use a household spending plan. Ways to maximize
resources and reduce energy consumption are also explored. Participants receive
a free money management kit.
Exploring Credit/Debt Management Issues
provides information on selecting and using credit wisely. Strategies for paying
down debt, obtaining and reviewing a credit report and understanding a credit
score are also shared. Participants receive free credit management tools.
The workshops are free, however space is limited so pre-registration is
required. For an up to date schedule of workshops and registration information,
please visit
www.ccetompkins.org/EmPowerNY or contact Cornell Cooperative Extension at
607-272-2292.
For more information on services provided through EmPower New YorkSM
or for an Energy Services Application please visit
www.getenergysmart.org.
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QILC and Margert Help
Disabled with Accessibility Modifications
The Full Story
The Queens Gazette, October 4, 2006
With affordable housing or any other housing hard to come by nowadays, the
New York State Housing Fund Corporation has come up with a program that provides
funding for the disabled and seniors with an age-related disability to adapt
their homes to meet their needs, continue to live comfortably and safely in
their residences and avoid institutional care.
Recently, Governor George Pataki announced grant awards to eligible not for
profit entities that have substantial experience in adapting or retrofitting
homes for persons with disabilities.
The announcement said that $200,000 has been reserved for Queens County,
according to the Queens Independent Living Center, which recently moved into new
offices at 23-35 Broadway in Astoria.
Fortunately for disabled persons and seniors in this area, QILC is a leader
in developing such housing resources, and it recently teamed up with Margert
Community Corporation, a specialist in the field.
QILC is presently accepting applications to seek the benefits of the state
program. Individuals in Queens with disabilities and their families who are of
low or moderate income and need such modifications to stay in their homes are
eligible.
To find out if you qualify for this assistance and to apply, call QILC
weekdays from 9 a.m. to 5 p.m. at 718-204-7114. Funding availability is
limited, so apply as quickly as possible.
Examples of the work involved include widening the front doors of homes to
accommodate wheelchairs, building wheelchair ramps and installing lifts, stair
glides, handrails or lever handles on doors, and constructing roll-in showers
with grab bars and kitchens that are easy to maneuver in.
QILC said in a release that accessibility modifications present a challenging
array of design specifications and work measures. All are designed to
incorporate the principles of universal design into all housing, so that living
environments are usable by all people.
Homeowners and renters may qualify for assistance, QILC said, under the
following criteria:
§
An occupant who is physically disabled or has substantial
difficulty with an activity of daily living because of aging.
§
A dwelling unit that must be a permanent residence.
§
Total household income may not exceed 50 percent of Queens County
median income.
"We are excited to work with a new partner, Margert Community Corporation,
which provides non-profits and low-and moderate-income individuals help with
energy and home repair projects," QILC President Daniel Aliberti said.
The QILC release stated that funding assistance under the state housing
program would be provided as a forgivable loan. Loans to homeowners and renters
will be for up to 100 percent of the total cost of the adaptations to a maximum
of $25,000. Loans will be at zero percent interest and repayment will be
forgiven at the end of seven years as long as the housing unit remains the
applicant's primary residence.
QILC is an organization for people with disabilities dedicated to empowerment
and universal access through education and advocacy. Its mission is to empower
people with disabilities to take control of their own lives.
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