But he said he would never take out a payday loan to pay a bill — and would optinstead to put the bill on a credit card or borrow money from family or friends.“I think they should be avoided,” hesaid. “It’s a very devious way to keep thepoor poor.” Al Ripley, director of the consumer and
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Friday, February 22, 2013
Volume 120, Issue 157
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Lon ye reved
Charlotte,Raleigh battle forfunds
By Claire Bennett
To the frustration of Charlotte civic leadersand other city residents, former Charlotte mayorand current Gov. Pat McCrory isn’t giving hishometown any special treatment.North Carolina’s largest city, Charlotte, and itscapital, Raleigh, are ensnared in a dispute involvingmoney for two transportation projects in Charlotte.The Charlotte City Council has asked the stategovernment to fund 25 percent of an extension of the city’s Blue Line light rail.The extension would run from UNC-Charlotte’smain campus to its new uptown campus.“It’s really beneficial because we have a lotof people who commute, and we already have a parking problem on campus,” said UNC-C sopho-more Amanda Wilson.The light rail extension will be funded using50 percent federal grant money, 25 percent statemoney and 25 percent city money.But the city is also considering building a streetcar that would link eastern Charlotte to thecity’s west side.Rep. John Torbett, R-Gaston, said legislators were caught off guard by the streetcar proposal.“We were getting mixed signals from themayor about what priorities were,” he said.Torbett said the state has to maximize benefitsfor all N.C. residents — using limited funds.“The state is wondering, ‘If the city doesindeed raise the money for the streetcar exten-sion, then why are you asking us for $180 millionfor the Blue Line extension?’” said Charlotte city council member Andy Dulin.
Nw tansptatn ppsals acasn tnsn n t stat captal.
People couldsimultaneously takeout multipleloans from thesame lender.
An employed adult who earns a salary and has a checking account needs extra money to pay for livingexpenses, bills or sudden nancial decits. The options are:
The person goes to alender and writes a check forthe amount of the loan plusinterest, which can be nogreater that 15 percent per$100 borrowed.The check ispostdated — usually untilpayday — and the personreceives the neededmoney on the spot.The lender is now within their right to deposit the check.
Proposed changes in state payday lending process
Get a smallerloan, such as apayday loan.Payday loans areeasy to get and withfew qualications.
was the amountthat could beborrowed.
is the maximumamount that cannow be borrowed.
After covering livingexpenses, the person still cannotpay the full amount of the loan, sothe check bounces and the lendercharges him or her an additionalreturned check fee.
If the person canpay o the loan,then it is closed.If the person couldn’t aordto pay o the loan, he or she could”roll over” the loan until the nextpaycheck by paying an additionalfee. The fees would continue,often for months, until theloan was paid o.
There was no extendedpayment plan option.
Once a year the lender canoer the person an extendedpayment plan to pay theamount owed — the loan,interest and returned checkfees — in fourinstallments.
Pay toorder of
The person cannotborrow additional moneyfrom the same lenderuntil 24 hours after theorginal loan is paid o.
SOURCE: AL RIPLEY, N.C.JUSTICE CENTER, N.C. SENATE BILL 89
By Sarah Brown
Members of the N.C. General Assembly are proposing to revive a controversiallending practice that has virtually laindormant for more than a decade. Advocates of the practice — known aspayday lending — say the ability to obtainquick loans, with new consumer protec-tions, would aid low-income residentsduring a slow economic recovery.But opponents of the measure counterthat the loans could trap residents in a cycle of debt — the same reason the prac-tice was previously banned.Payday lending allows people with a joband checking account to pay immediateexpenses by taking out small, short-termloans before their next paycheck. The leg-islature banned it in 2001.“The demand (for the loans) has nevergone away in North Carolina,” said JamieFulmer, regional spokesman for Advance America, a national payday lending firm.Sen. Jerry Tillman, R-Randolph, intro-duced Senate Bill 89 last week, which would enable residents to borrow up to$500 and cap the interest rate at 15 per-cent on every $100 borrowed.North Carolina is one of 12 states thatprohibits the practice.Fulmer said the bill would provide a simple, transparent and cost-efficientcredit option for N.C. residents.“(People) get to a point in time wherethey have more month left than money,”he said. “They’ll be able to use this loan to bridge that gap.”Before the practice was banned, some borrowers had taken out new loans to pay off old ones and paid high interest feeson all of them, said Pat McCoy, execu-tive director of Action N.C., a community advocacy group that opposes the bill.But specific consumer protections, suchas preventing people from continuously rolling over loans to postpone repayment,are important aspects of the new bill,Fulmer said. In 1999, about $80 million inrenewal fees was charged by lenders.“This option will be safe and regulated while meeting customers’ needs,” he said. After graduation, students could takeout payday loans to help pay off collegedebts, Fulmer said. But he said payday lending might not be the best option todeal with student loans.UNC sophomore KJ Moon, a biology and economics major, said he understands why people would turn to payday loans fora quick financial fix.
Lslats cns vsna 2001 an n payay lnn.
Climbing wall toreopen nearly a year after accident
By Elizabeth Kemp
Almost a year after a UNC stu-dent fell and severely injured herlegs and lower body, the indoorclimbing walls at Rams HeadRecreation Center and Fetzer Hall will reopen after spring break.Christopher Payne, the associ-ate vice chancellor for studentaffairs, said that the facilities willreopen after recommendationsfrom the UNC’s department of environment, health and safety have been implemented.On April 21, Lizzie Smith,then a UNC student and CampusRecreation employee, fell off theRams Head climbing wall. She was taken to the hospital after a security guard found her, and the walls were closed indefinitely.The department completed anevaluation of the walls’ safety last year, and recommended an inde-pendent review, which concludedon Jan. 28.The review consisted of a detailed inspection of the walls,safety equipment and the pro-gram’s staff training practices.The department also suggestedenhancing employee training,including a review of proceduresfor staff roles and responsibilities when working at the climbing walls.Other recommendationsincluded a formal assessment of the safety of employment at the walls, and a review of climbing wall sign-in procedures as well asrecord-keeping practices.
Carrboro aldermen hope tomake housing a≠ordable
By Jenny Drabble
With more than 50 percent of Carrboro residents burdened by theirrent or mortgage, the Carrboro Boardof Aldermen is taking action to makehousing more affordable.“In part we are a victim of ourown success,” said Alderman Sammy Slade. “Carrboro is a nice place tolive, so a lot of people want to livehere, which makes property moreexpensive.”On Tuesday, the board heard rec-ommendations for preserving afford-able housing in the town. The report’smain goals are increasing the supply and quality of affordable housingunits in Carrboro and helping peoplestay in their current homes.The report, created by the townplanning board and Transportation Advisory Board, consists of 12 recom-mendations — including establishinga public-private housing trust fundand making the Affordable HousingTask Force a permanent committee.The North Carolina HousingCoalition and the UNC Departmentof City and Regional Planning pro- vided research and data to the boardand helped facilitate community dia-logues in October. According to the report, 55 percentof homeowners and 53 percent of renters in Carrboro spend more than30 percent of their wages on housing.Slade said one goal of the planning board is to ensure Carrboro residents’rent or mortgage doesn’t exceedthat percentage of their household’sincome.The mean renter wage in OrangeCounty is $9.67 per hour, meaning anaverage person would have to work 62 hours a week to afford a two-bed-room apartment at fair market rent. At minimum wage, or $7.25, a per-son would have to work two jobs toafford this rent. And at $779, fair market rent is
A cnt pt sststps t twn cl takt mak sn cap.Sval nw pactcswll mplmntp a aclty vw.
The Carrboro Boardof Aldermen formed the AffordableHousing Task Force.
The CarrboroPlanning Board hosted theAffordable Housing Dialogue Seriesas part of National CommunityPlanning Month.
Residents of Collins Crossing Apartment Homesin Carrboro protest rising rents.
The Board of Aldermen discuss taking over theCollins Crossing complex in order topreserve affordable housing.
much higher in Orange County thanin other parts of the state.Slade attributes these rates to theattractiveness of Orange County asa place to live, which has increased
ChArLoTTe TrANSiT diSPuTe
Charlotte officials and N.C. lawmakers are engagedin a dispute about the city’s Blue Line light rail:The state will provide part of the money for alight rail linking UNC-Charlotte’s campuses.Council members have also proposed usingproperty taxes to pay for a new streetcar system.Lawmakers are questioning why the city needsstate money for one proposal and not the other.
d t h / M a e g a N C L a W g e S ,a a R O N M O O R e , B a I L e Y S e I t t e R