3 years ago

Payday lending isn’t necessarily predatory lending, but it can be necessary for the working poor

On my radio program last week, a regular contributor mentioned that a bill to eliminate payday lending had passed the Alabama Senate, and I was surprised.

Having dealt with the issue back when I was in office, I think payday lending gets a bum rap out in the mainstream media. These short term loans are an important part of the financial lending community and are often the only access to credit that some people have.  I also wondered what special interest group is driving an agenda for which the general public nor the so called “poor” is clamoring.

The answer is the Southern Poverty Law Center (SPLC). 
Republican supermajorities do not — or used to not — kowtow to the SPLC.  If there is a more liberal group in the United States, this conservative is not aware of it.  Maybe the legislators have bought into the SPLC propaganda that they are protecting the poor, but by eliminating the only means for credit the poor have? By eliminating the jobs of the 5,000 people in the state who work in the industry?

That doesn’t make sense.

Helping the poor is a noble cause, in the generic sense of the words, but how does eliminating payday loans actually help the poor? How does making it more difficult for someone with limited means and bad credit to get the money they need to make it to the next paycheck help the poor?

This question is the one that made it difficult for me to legislatively pursue the total destruction of the payday lending industry.

If a poor person needs $100 dollars on Wednesday to make it to Friday, where can he get it?  The answer is nowhere … if there is no such thing as short term lending.

These loans are simply too risky and too small for banks or credit unions to handle. If payday loans were workable at a lower interest rate, then someone would be doing it right now.

You don’t have to change the law to do that. Just let capitalism work. I suggest that those who believe they can run a better business model for short term lending get out in the market and do so.  Show us how to help the poor the right way.

What happened to free market Republicans in the Alabama legislature?

There used to be enough to make up an entire caucus. Does the term “free market” mean nothing when the Southern Poverty Law Center says jump?

In Washington, D.C., President Barack Obama tried to crush the payday loan industry, and now Republicans gleefully further Obama’s agenda in Alabama. Regulating a whole sector of the financial services industry out of existence is not the free market.

Another person on the radio show described working at his job and loaning his buddies $20 on Wednesday to help them make it to Friday. On payday they gave him back $25. He called it 20 for 25, and his friends appreciated being able to buy gas and food for those couple of days.  20 for 25 seems reasonable and harmless, but the cost to the borrower is more than is charged in Alabama’s payday lending industry. I know, it’s weird — 20 for 25 did not seem predatory at all.

The working poor will continue to need small cash loans from time to time. That will not change, but we cannot help people by not allowing them to help themselves.

All of our freedoms come with the risk of excess and of getting into trouble. Payday lending is simply another market based, regulated, and lawful financial service that replaced the mob supported loan sharks of days gone by.

My friend, Senator Tom Whatley, who was apparently one of the few willing to talk about the free market on the Senate floor made a great point: the people who cannot get short term loans in Alabama will now get them online, or from people who want more than an interest rate. They want an arm or a leg. Well said, Mr. Whatley.

To help the poor, the legislature should stop helping.

Prior legislation has straightened up the industry, and lawmakers should leave well enough alone. Let the payday lending legislation die a quiet death. It is not needed, and it hurts regular folks who are thankful that they have the option of a short term loan when they need one to make ends meet.

(Image: Alison B./Flickr)

Scott Beason is a former state senator and now hosts a talk show on WYDE 101.1 FM in Birmingham and Huntsville.

8 hours ago

Alabama lineworker training programs graduate spring classes

Bishop StateLawson State and Jefferson State community colleges are investing in the future by offering technical training programs to prepare students for careers in the skilled trades.

Through this innovative partnership, students can learn the fundamentals of electricity as well as the math and science knowledge needed to work on power lines. In addition to classroom instruction, students receive hands-on practice in an outdoor learning laboratory, honing their new skills so they are job-ready upon graduation.

186

This spring, 39 students successfully completed lineworker training programs in Birmingham and Mobile.

As part of its ongoing commitment to workforce development, Alabama Power Company partners with these colleges to offer lineworker training programs.

“We are excited to partner with these outstanding colleges and provide opportunities for Alabamians to train for great, safe careers as lineworkers,” said Jeff Peoples, Alabama Power executive vice president of Customer and Employee Services. “Helping ensure our state’s workforce is well-represented and prepared to succeed today and in the economy of the future is an important way we seek to elevate Alabama.”

Post-graduation response has been favorable from hiring companies.

“Alabama Power and other utility partners have been extremely impressed with the quality of hires from these programs,” said Tom McNeal, Alabama Power Workforce Development Program manager. “I encourage utility companies and contractors seeking quality candidates and students interested in applying for the programs to contact the school in their area.”

Potential students who want to apply or learn more about the program should contact:

(Courtesy of Alabama NewsCenter)

11 hours ago

Smiths Station celebrates two decades through new city clock

This June, Smiths Station will mark 20 years of incorporation, and the city is planning to celebrate the past, present and future in the most momentous way. City officials led by Mayor F.L. “Bubba” Copeland unveiled a city clock that will honor history while looking to the future.

Nestled between Phenix City and Columbus, Georgia, Smiths Station is one of the three fastest-growing cities in Alabama, according to state officials. Incorporated in 2001, the Smiths Station community was founded in the early 1700s. It had an estimated population of 5,345 people in 2020.

198

Copeland, the second mayor in city history, offered appreciation to the first administration in setting standards for Smiths Station’s successful 20-year history as a city.

“Thanks to the previous administration, former Mayor LaFaye Dellinger and the City Council that laid the groundwork, it was easy for us to build on that foundation, build the roof and with each passing administration, the building will get fancier and fancier,” he said.

Copeland went on to say, “the clock represents time set upon us and what we do in life.”

He said the city and community deserve the landmark and all that it signifies.

Melissa Gauntt, the daughter of Dellinger, expressed her gratitude to the foundation. She said of her mother’s work: “I know the time and commitment that she gave to the city in her 16 years as the mayor and even before becoming mayor in leading the efforts to incorporate the city. “It is truly befitting that this beautiful clock be representative of these deeds and is a striking addition to the front of City Hall.”

The clock is in downtown Smiths Station at 2336 Lee County Road 430. For more information about the city of Smiths Station, visit www.smithsstational.gov.

(Courtesy of Alabama NewsCenter)

13 hours ago

Hyundai lending cutting-edge hydrogen fuel cell SUV to Alabama State University

Hyundai Motor Manufacturing Alabama (HMMA) will lend one of the world’s first hydrogen fuel cell sport utility vehicles, the Hyundai NEXO, to Alabama State University for an extended evaluation period.

Robert Burns, Hyundai’s vice president of Human Resources and Administration, made the announcement at a news conference April 6 joined by ASU President Quinton Ross in front of the ASU Lockhart Gym.

“This is truly a great time to be a Hornet as we celebrate the continuing partnership between Hyundai and Alabama State University,” Ross said. “Several weeks ago, Hyundai and ASU came together as the university hosted a COVID-19 vaccination clinic for the employees of Hyundai, and today we witness ASU partnering with Hyundai again as it loans us its high-technology vehicle, the NEXO, which will allow us to expose our STEM (science, technology, engineering and math) students to this first-of-a-kind vehicle.”

302

The Hyundai NEXO is the first hydrogen fuel cell SUV available for commercial sale in the world. It uses hydrogen to produce electricity for the vehicle’s electric power train and its only emission is water vapor. The Hyundai NEXO is available for sale only in California. Although the NEXO is not assembled at the Montgomery plant, HMMA has two Hyundai NEXOs that are part of a ride and drive program.

“The groundbreaking spirit behind the NEXO mirrors our own mission to be an innovative manufacturer of current and future mobility solutions,” Burns said. “The partnership between ASU and Hyundai began a few weeks ago with the COVID-19 vaccine clinic. The system ASU had in place was smooth, efficient and it worked well. Today, we extend that partnership with the evaluation of the Hyundai NEXO by the university. We are excited again to be working with Alabama State University.”

ASU hosted the first of two COVID-19 vaccination clinics for Hyundai employees March 26-27. ASU Health Center personnel will administer the vaccine’s second doses to them April 16-17.

“Our partnership between ASU and Hyundai has been smooth and wonderful,” said Dr. Joyce Loyd-Davis, senior director of ASU’s Health Services. “Today’s event and our April COVID-19 vaccine’s second-round injections to Hyundai’s employees is a great example of ASU and Hyundai’s relationship jelling and extending into the future.”

Montgomery County District Judge Tiffany McCord, an ASU trustee, thanked Hyundai for being a team partner with ASU. “This is yet another positive example of President Ross putting his vision of ‘CommUniversity’ into action, which is good for both Hyundai and ASU,” McCord said.

She was joined at the news conference podium by fellow trustee Delbert Madison. “Thanks to the Hyundai family, which is a major contributor to our community,” he said. “When Hyundai shows up, it shows out.”

(Courtesy of Alabama NewsCenter)

14 hours ago

Auburn University’s Department of Animal Sciences partners with Winpak to extend shelf life of food

Auburn University’s College of Agriculture and its Department of Animal Sciences are teaming up with global packaging manufacturer and distributor Winpak to focus on research to extend the shelf life of meat and food products.

The food product packaging research began in October 2020.

“We are grateful and excited for the unique learning opportunities that will come from utilizing a collaborative partnership,” said associate professor Jason Sawyer. “Through this partnership, Winpak and Auburn University will aid their shelf life research through the placement of a VarioVac Rollstock Packaging Machine provided by Winpak.”

315

Collaborating with Winpak and working with industry leaders will not only enhance and contribute to diverse research experiences within the graduate program, but will provide undergraduate students with real-world meat and food packaging involvement, Sawyer said.

“We anticipate this project will work as the foundation to a significant relationship with Winpak, as Auburn University works in tandem with company experts to produce cutting-edge protein packaging and shelf-life solutions,” he said.

The Auburn University meat science research team goal is to provide more product value and reduce markdowns and waste at the retail counter.

Research evaluating alternative packaging of protein products can provide greater knowledge about creating safer products for consumers as a result of less microbial growth.

“Winpak is excited to partner with Auburn University on this unique opportunity,” said Tom Bonner, protein market director at Winpak and an Auburn alumnus. “Developing packaging concepts is an area where Winpak feels Auburn’s Lambert-Powell Meat Laboratory can add valuable knowledge and insight.”

Leaders in the protein industry are looking for innovative and sustainable solutions to the ever-changing demand for new packaging concepts, Bonner said.

“As Winpak continues to develop sustainable packages for the protein market, we hope this partnership will attract these industry leaders to the Lambert-Powell Meat Laboratory to conduct packaging trials and ideation sessions,” he said.

The packaging equipment at Auburn will allow for student interactions with industry leaders. The goal will be to expose students early in their pursuit of career options and facilitate better-informed students entering the workforce. The protein industry will need strong, innovative leaders to develop creative ideas to keep up with the demand for meat proteins.

“Supporting our customers and upcoming food manufacturing leaders is something we take very seriously at Winpak,” Bonner said. “We anticipate that our new collaborative relationship with Auburn University will be the spark to many unique and interesting ideas for the protein industry.”

This story originally appeared on Auburn University’s website.

(Courtesy of Alabama NewsCenter)

15 hours ago

Nearly $100 million targeted for wildlife injured by 2010 oil spill in Gulf of Mexico

The Deepwater Horizon Regionwide Trustee Implementation Group, which includes trustee representatives from four federal agencies and the five Gulf Coast states, is seeking public input on the first post-settlement draft restoration plan.

The regional approach exemplifies collaboration and coordination among the trustees by restoring living coastal and marine resources that migrate and live in wide geographic ranges, as well as linking projects across jurisdictions.

The plan proposes $99.6 million for 11 restoration projects across all five states bordering the Gulf of Mexico, and specific locations in Mexico and on the Atlantic coast of Florida. Comments will be accepted through May 6. The trustees are hosting two public webinars with open houses for questions and answers on April 15.

168

The draft restoration plan evaluates projects that would help restore living coastal and marine resources injured by the Deepwater Horizon oil spill through a portfolio of 11 projects:

  • Four projects ($18.6 million) to help restore sea turtles.
  • Three projects ($7.2 million) to help restore marine mammals.
  • One project ($35.8 million) to help restore and increase the resilience of oyster reefs.
  • Two projects ($31 million) to help restore birds.
  • One project ($7 million) to help restore both sea turtles and birds.

The public is encouraged to review and comment on the draft plan through May 6 by submitting comments online, by mail or during the virtual public meetings.

Information on how to submit your comments are at the latest Regionwide Restoration Area update.

During the April 15 virtual meetings, trustees will present the draft plan and take public comments. Register and learn more about the webinars and interactive open houses.

The draft plan and more information about projects, as well as fact sheets, are posted on the Gulf Spill Restoration website.

(Courtesy of Alabama NewsCenter)