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Fake Credit Repair and Debt Relief Scams: $2.7 Billion Settlement Pending Federal Court Approval By Charlene Crowell

Sept. 10, 2023

Fraud Graphic

(TriceEdneyWire.com) - As consumers complain about the real-life challenges of keeping pace with the rising costs of living, key financial reports reveal that the challenges are as high and widespread as this summer’s scorching heat.  

In early August, the Federal Reserve Bank of New York released its quarterly report on household debt and credit. At mid-year, the nation’s total household debt rose to $17.06 trillion – a $2.9 trillion increase since the start of the pandemic recession in late 2019.  

Little wonder then, that millions of consumers became susceptible to phone calls and advertising that promised financial relief. At the same time, businesses looking to make major profits from others’ financial woes have been busy. Chief among these financial predators are debt relief and credit repair firms that make promises, collect up-front fees and never deliver for consumers.  

On August 28, the Consumer Financial Protection Bureau (CFPB) announced a $2.7 billion judgment against major members of this industry. An order now awaiting federal court approval would also ban these firms from telemarketing credit repair services for 10 years for illegal actions dating back as far as 2016.  

“Americans across the country looking to improve their credit scores have turned to companies like CreditRepair.com and Lexington Law. These credit repair giants used fake real estate and rent-to-own opportunities to illegally bait people and pad their pockets with billions in fees,” said CFPB Director Rohit Chopra. “This scam is another sign that we must do more to fix the credit reporting and scoring system in our country.”   

CFPB’s lawsuit charged its defendants with failure to perform legitimate credit monitoring services. Its legal challenges cited the Telemarketing Sales Rule (TSR) that requires fees for tele-marketed credit repair services be paid after – not before - the promised credit repair has been completed. The rule also requires that credit repair firms provide documentation that substantiates the promised results were achieved within six months. Additional counts in the complaint charged that the defendants used deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010 (CFPA).  

Two of the lawsuits’ defendants, Lexington Law and CreditRepair.com, are the largest credit repair brands in the country. The credit repair services are marketed and offered through a web of lesser known but related entities operated nationwide and had more than 4 million customers who were subjected to telemarketing. In 2022 alone according to CFPB, the defendants had combined annual revenues of approximately $388 million.  

To generate credit repair sales for Lexington Law and CreditRepair.com, defendants used a network of marketing affiliates that advertised a variety of products and services, often related to consumer credit products. Typically, according to CFPB, telephone agents pitched so-called credit repair services to the consumer, and later transferred calls to agents employed by a separate firm who would attempt to close the credit repair sale. This second firm would be paid by defendants for each sale closed with the deceptive practices that led consumers to believe only a single entity was involved. 

Court approval of the settlement will: 

  • Ban the perpetrators from telemarketing for 10 years: The companies will be banned from telemarketing credit repair services or selling credit repair services that others marketed through telemarketing for 10 years. The companies will also be banned from doing business with certain marketing affiliates. These bans will attach to the companies even after the bankruptcy proceedings are complete. 
  • Require notices to consumers: The companies will be required to send a notice of the CFPB settlement to any remaining enrolled customers who were previously signed up through telemarketing. The notice will inform consumers of the CFPB’s lawsuit, the court’s summary judgment holding, the settlement, the consumer’s right to cancel their credit repair services, and the process for canceling the service. 
  • Impose a $2.7 billion judgment for redress: The order would impose a $2.7 billion judgment against the companies for redress. Due to the companies’ financial insolvency, the CFPB will determine whether the CFPB’s victims’ relief fund can be used to make payments to those harmed by the perpetrators. 
  • Impose more than $64 million in civil penalties: The order would impose a $45.8 million civil money penalty against Progrexion Marketing and a $18.4 million civil money penalty against the Heath law firm

Credit repair companies that offer quick fixes are often scams that disappear with consumers’ hard-earned money,” noted Pamela Hernandez, a regional manager with the Better Business Bureau.  

Charlene Crowell is a senior fellow with the Center for Responsible Lending. She can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..  

The Jobless Rate for Blacks Drops By Frederick H. Lowe

Sept. 5, 2023

BlackUnemploymentRatefromObamatoTrumptoBiden

Special to the Trice Edney News Wire from BlackMansStreet.Today

(TriceEdneyWire.com) - The jobless rate for Blacks dropped, but not far enough to catch up with other ethnic groups. The August jobless rate for Black men fell to 5.0 percent compared to the seasonally adjusted average in August 2022 to 6.0 percent, according to the U.S. Bureau of Labor Statistics.

The unemployment rate for Black women was a seasonal adjusted 4.7 percent in August compared with 5.9 percent in August 2022.

Employment continued to trend up in health care, leisure and hospitality, social assistance, and construction. Employment in transportation and warehousing declined.

The unemployment rate for Blacks compared with Whites, Hispanics, and women was much higher.

The jobless rate for Whites is 3.4 percent, and for Asians is 3.1 percent; the rates for both groups rose in August. The unemployment rate for Hispanic men is 4.3 percent and 4.4 percent for Hispanic women.

The jobless rate for adult women stands at 3.2 percent, for teenagers, 12.2 percent, for Blacks, 5.0 percent, and for Hispanics the rate it was 4.9 percent and 4.3 and 4.4 percent for Hispanic women.

Special Report: Black Youths Suffer the Most from Gun Violence in America By Hazel Trice Edney

 Sept. 4, 2023

Editors and publishers: If this special report is too long, feel free to edit and cut accordingly for your readers or make it a Part I and Part II series. Also, to enhance relevance, you may add photos and accounts of Black homicide victims in your specific community.

Sierra Jenkins

Homicide victim, reporter Sierra Jenkins, died amidst gun fire not intended for her in the beginning of her career.

 Devon Harris

 Homicide Victim Devon Harris, an honor student and football player, caught in the same hail of bullets as Sierra Jenkins. 

Shawn Johnson and Renzo Smith

 Homicide victims Shawn Jackson and his beloved stepfather, U. S. Army veteran Renzo Smith, shot down 30 minutes after Shawn's high school graduation.

 

 

ZinaT.McGee

Sociologist Zina T. McGee

Rahn Kennedy Bailey MD

Psychiatrist Rahn Kennedy Bailey, MD

 Dr.ValdaCrowder MD

Chief Emergency Room Physician Valda Crowder MD

(TriceEdneyWire.com) - Sierra Jenkins, a former news assistant for CNN and reporter with the Virginian Pilot newspaper, was headed for the peak of her career. Her colleagues praised her for her journalistic acumen and her respect for reporting excellence.

But when her editor tried to call her to assign her to cover a shooting in Downtown Norfolk, Va. on March 19 last year, he could get no answer. Way out of character for this young journalist, known for her professionalism and accountability, there would be a reason for her non-response that would shock the world. Sierra Jenkins, 25, was one of the victims of the very shooting that her editor sought her to cover.

As her phone rang, she lay dead outside a popular pizza restaurant, felled by a bullet shot during an argument over a spilled drink. She was not involved in the dispute and the bullet was never intended for her. Nor was it intended for 25-year-old former high school honor student and football linebacker Devon Harris, also killed in the gunfire that night. The news devastated the community; their co-workers, family and friends.

Fifteen months later, on June 6 this year, only about 90 miles away, 18-year-old Shawn Jackson was also a promising young African-American. Having just graduated from Huguenot High School 30 minutes earlier, he lay dead outside Richmond’s Altria Theatre alongside his stepfather, Renzo Smith, a U. S. Army veteran. Both were killed by bullets from a gun wielded by a 19-year-old man who targeted the two men, according to police.

Whether the shootings were unintended or criminally intended for their victims, across the nation - coast to coast - Black people are disproportionately dying, being wounded by or mentally suffering from gun violence. According to the Centers for Disease Control and Prevention, the leading cause of death [cdc.gov] among America’s Black children and young adults ages 1-44 is homicide by firearms.

Amidst this crisis, sociologists, Black mental health experts and medical workers say one thing is certain: The travesty has taken its toll on Black mental health - largely through fear, stress and grief - while the gun industry is reaping billions of dollars.

“The volumes of guns are now so high that many people just use a gun to solve conflict when even that person might have tried something different in the past,” says psychiatrist Rahn Kennedy Bailey – chairman of the department of psychiatry at Louisiana State University in New Orleans. “Our streets have been flooded with guns, a lot of guns. Where people have always had conflicts and had to resolve it in different ways, now they might grab you and shoot you…The sheer volume of guns are so high, a lot more violence happens.”

According to a report by the Center for American Progress, between 1986 and 2008, an average of 3.8 million firearms were manufactured in the United States. The report titled, “The Gun Industry in America: The Overlooked Player in a National Crisis [static1.squarespace.com],” then illustrates the rapid annual growth of the gun proliferation. The 3.8 million between 1986 and 2008 “doubled to an annual average of 8.4 million firearms per year from 2009 to 2018,” the most accurate recent count by the ATF.

In the year 2022 alone 4.2 million people in America became new gun owners, according to the National Shooting Sports Foundation [nssf.org] (NSSF), the firearm industry’s trade association. In a report [nssf.org], the NSSF estimates “in 2022 the firearm and ammunition industry was responsible for as much as $80.73 billion in total economic activity” in America. This does not count the thousands of so-called “ghost guns”, weapons not traceable because they are purchased secretly online or even made at home.

The compilations of resulting deaths have come from multiple directions. An NBC News analysis of data [cdc.gov]from the U.S. Centers for Disease Control and Prevention [cdc.gov] says, “More Americans have died from gunshots in the last 50 years” than in all of the wars in American history. “Since 1968, more than 1.5 million Americans have died in gun-related incidents. By comparison, approximately 1.2 million service members have been killed in every war in U.S. history, according to estimates from the Department of Veterans Affairs [va.gov] and iCasualties.org [icasualties.org].”

Everytown.org, a gun violence prevention organization, reports that Black people "experience 12 times the gun homicides, 18 times the gun assault injuries, and nearly 3 times the fatal shootings by police of White Americans."

But, the disparate impact on the Black community is not new. It has been long known by experts that African-Americans - just as in the cases of most other tragic social statistics - bears the brunt of the pain of gun violence physically, mentally and emotionally; even indicating that gun violence dramatically affects educational outcomes such as test scores.

A study led 20 years ago by Hampton University Endowed Professor Zina T. Mcgee, concluded that “Studies based on children raised in communities in which violence occurs have shown that direct encounters with violence (either as a victim or witness) increase the likelihood of experiencing anxieties, depression, social withdrawal, and difficulties in concentrating.” Based on information collected from African-American youth “residing in areas plagued with violence and crime,” Mcgee’s 2003 study [academia.edu] states that “With regard to social class, research indicates that low socio-economic status serves as one of the many environmental factors that can contribute to the use of violence to resolve conflicts.”

Despite credible conclusions that most gun-related homicides occur in low-income Black communities [penntoday.upenn.edu], it is clear that without the proliferation of guns the shootings would not be possible.

Dr. Valda Crowder, director of Emergency Medicine at the University of Pittsburgh Medical Center in Harrisburg, Pennsylvania witnesses the carnage up close on a regular basis. And it’s gotten so bad that while treating victims; she and other medical professionals must also protect themselves.

“Many emergency departments now have armed guards because there have been threats against emergency medicine physicians, nurses, and hospitals. There have been actual shootings where emergency medical physicians were killed,” Crowder said in an interview. “So many now have armed guards as a result of the increased threats. Many also have machines that you have to go through just like the airport and metal detectors. Patients are sometimes wanded. Those things used to never occur 20 or 25 years ago. I think people should realize that any person or entity that anyone could get mad at is a potential victim.”

Crowder is among those struggling to end the carnage. Among a list of unique initiatives to end gun violence include the following:

· Crowder recalls how the historic photo of the mutilated body of Emmett Till, published in JET magazine, stunned the world and has been credited with sparking the modern day civil rights movement. Crowder believes that same kind of stunning moment could work again by placing on display bodies that have been mutilated by gun violence. “In 1955, the open-casket funeral of Emmett Till [r20.rs6.net]drew international attention to the savagery of Jim Crow segregation, spurring a national civil rights movement,” Crowder wrote in an op-ed early this year. “Now almost 68 years later, we must ‘do something’ to stop the gun violence. Opening the casket of someone who was shot by an assault rifle in a mass shooting may be the shock the nation needs. It may be the photograph that launches a bigger, broader movement overwhelming the clout of gun manufacturers and other entrenched influences.”

· U. S. Rep. Bobby Scott, who held a “Gun Violence Prevention Roundtable”, in 2019 following an incident in which 13 people were killed in a mass shooting, listed a string of Virginia killings and gun injuries near the area where Sierra Jenkins and Devon Harris were killed. “We have evidence available to show that affective policies can reduce these shootings,” Scott says. “When they are implemented, background checks work. Every day, background checks stop nearly 250 dangerous individuals from being handed a firearm. However, these same people can go to a gun show and purchase a firearm without any background check. Virginia laws are among the worst in the country,” he said, describing the commonwealth as the “gun-running capital of the world.”

· Scott says an assault weapons ban must be instituted because “the only thing that assault weapons are good for is killing many people quickly.” He said there is also need for sizeable gun magazine limitations. There are actually limitations on the size of a gun magazine to protect ducks but no limits on the size of gun magazines to protect people, he said.

· After a rash of mass shootings, including the racist killings of 10 people at a Buffalo, New York grocery store by a 19-year-old White man, the U. S. House and Senate finally passed a historic bi-partisan gun bill that was signed into law by President Joe Biden on July 11 last year. The first significant gun legislation in more than 30 years, it includes enhanced restrictions on gun ownership by people convicted of certain violent crimes; including domestic abuse. But it still fails to include restrictions on large bullet magazines. In fact, a similar racist killing of three Black people in Jacksonville, Florida recently on August 26 was by a 21-year-old White man who reportedly bought the AR-15-style rifle legally. Biden said he didn’t get all that he wanted in the new law, but he vowed to keep trying.

Still, good old fashioned home training that instills non-violent morals and values is the best way to deter violence, says Bailey.

“The respect for life, how your parents raised you matter. If you believe human beings are valuable you wouldn’t shoot someone at all let alone shoot them for a non-violent offense,” Bailey said. “But in many shootings now that are not self defense or life or death, people are said to have a beef over something that’s non-violent and the person escalates it to violence by grabbing a gun and shooting someone.”

Parents, teachers and school officials could be in on this training in conflict resolution, Bailey says.

“Children are on the playground bumping into each other all the time. How teachers and counselors handle it goes a long way in teaching a little kid that it’s normative to jump around and bump into each other. But it’s not normative to bump into each other and knock them down and not try to help them or try to offer them assistance. Those are the kinds of things that start the process. The other thing is you can also do roll play of arguments so that young people can recognize what you should and should not say in the middle of a really big argument. Young men are often 18, 19, 20 years old; so they can drive and move around. They just may not know how to handle conflict. We should be very involved in this process.”

Racist Attacks Can't Hide Massive Lawlessness on Display In Fulton County, Georgia's, Case Against Trump's 'Corrupt Organization' By Marc H. Morial

Sept. 3, 2023

To Be Equal
 

Express written permission must be obtained from Mauri Solages Photography for usage
(TriceEdneyWire.com) - “With Trump, you don't need to look for a dog whistle. It's a bull horn when it comes to race. And I do think that's deliberate. We've seen the -- I mean, slanderous attacks that he has put out against Fani Willis, you know, alleged things I won't even repeat. So, he's not really hiding that he's going to lean into that element, and this is, you know, taking place just outside of Atlanta. When you saw the courtroom, it was a lot of Black men and women who are serving in that courtroom  …  It's textbook Donald Trump but it comes as no surprise.” – Former White House Director of Strategic Communications Alyssa Farah 

If anything illustrates the depths to which Donald Trump and his supporters have sunk in responding to his racketeering indictment in Fulton County, Georgia, it’s his reference to those he falsely accuses of voter fraud as “riggers.” 

MAGA extremists, who have been using the word as a substitute for the n-word on far-right social media sites, responded with racist delight

Trump has put a dishonest, racist, and misogynistic spin on the old legal adage: If the law is against you, pound the facts. If the facts are against you, pound the law. If the law and the facts are against you, pound the table and yell like hell. 

But amount of pounding and yelling can obscure the breathtaking lawlessness outlined in the sweeping indictment Fulton County District Attorney Fani Willis filed this week against Trump and his 18 alleged co-conspirators.  By charging them under Georgia’s Racketeer Influenced and Corrupt Organizations Act Willis has at last cast their brazenly corrupt conduct in the proper legal light.  

While the narrowly-focused federal indictment that Special Counsel Jack Smith filed against Trump earlier this month acknowledges six alleged co-conspirators, they are neither identified nor charged.  Fulton County’s indictment of 18 co-conspirators – and reference to 30 more unnamed, unindicted co-conspirators – illustrates the far-reaching scope of the massive scheme to overturn the 2020 presidential election. 

Trump’s alleged criminal enterprise operated not only in Fulton County, but “elsewhere in the State of Georgia, in other states, including, but not limited to, Arizona, Michigan, Nevada, New Mexico, Pennsylvania, and Wisconsin, and in the District of Columbia.”  Its members engaged in “various related criminal activities including, but not limited to, false statements and writings, impersonating a public officer, forgery, filing false documents, influencing witnesses, computer theft, computer trespass, computer invasion of privacy, conspiracy to defraud the state, acts involving theft, and perjury.” 

Omitted from the federal indictment was an alleged conspiracy to breach voting equipment and access voter data. “In Georgia, members of the enterprise stole data, including ballot images, voting equipment software, and personal voter information. The stolen data was then distributed to other members of the enterprise, including members in other states.”  Nor does the federal indictment refer to a bizarre plan, advocated by Trump lawyer Sidney Powell, to use the military to seize voting machines around the country and re-run parts of the election. 

Future historians will rely on Fulton County’s case, not the federal government’s, for the full story of one of the darkest chapters in American history. The meticulous work of Willis and her team is all the more remarkable given the constant abuse and threats of violence, incited by Trump, that his supporters have hurled at them. Regardless of the outcome, Team Willis as well as the witnesses and grand jurors whom MAGA extremists also have targeted, will emerge as the heroes. 

Brother MLK Jr., a Great Warrior and Master Teacher By A. Peter Bailey

Sept. 3, 2023

Reality Check

apeterbailey

(TriceEdneyWire.com) - In a 2020 column published in the Washington Informer and several other Black newspapers, my headline stated that Black folks should honor Brother Martin Luther King, Jr., as a warrior and master teacher; not a dreamer. At the risk of being repetitious, I am making that request again after seeing, hearing and reading commentary acknowledging the 60th Anniversary of the March on Washington.

It was extremely annoying to hear way too many speakers and news organizations in 2023 repeatedly describing Brother Martin as a dreamer. For instance, in its August 27, 2023 issue, The Washington Post, one of the most influential newspapers in this country, included an article with the headline, “An oral history of the rally, 60 years after King’s dream.” Another article in the same issue was entitled, “Thousands signal a rededication to civil rights on Mall: At anniversary of 1963 march, speakers voice threats to King’s dream.” An article by President Joe Biden in the paper`s August 28, 2023 issue was entitled, “We must keep on marching towards Dr. King’s dream.”

The kind of treatment of Brother Martin, a warrior against White supremacy, is probably shared by most Whites in the country and, unfortunately way too many Black folks. My suggestion is that all of them pay more attention to the Brother Martin who said the following about the absolute necessity for Black unity in the battle to promote and protect our human rights:  “A second important step that the Negro must take is to work passionately for group identity….Group unity can do infinitely more to liberate the negro than any action of individuals. We have been oppressed as a group and we must overcome that oppression as a group.” That’s a call for Black unity as strong as those by Brother Marcus Garvey and Brother Malcolm X.

On the critical issue of economics, Brother Martin was also way more than a dreamer. “Black power is a call for pooling of Black financial resources to achieve economic security….Although the Negro is still at the bottom of the economy, his collective annual income is upwards of $30 billion. This gives him a considerable buying power that can make the difference between profit and loss in many businesses. Through the pooling of such resources and the development of habits of thrift and techniques of wise investments, the Negro will be doing his share to grapple with his problems of economic deprivation. If Black Power means the development of this kind of strength within the Negro community, then it is a request for basic, necessary, legitimate power.”

As far as I know, very few, if any, speaker at the 60th Anniversary event or journalists covering it dealt with brother Martin’s strong positions on the importance of Black unity and collective economics. If we had done so, we would be in a much stronger position to promote and protect our basic interests in 2023 and beyond.

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