Tuesday, October 1, 2013

A review this week by Wikinews of US Consumer Financial Protection Bureau (CFPB) complaints about student loans in the United States shows Sallie Mae leads all lending institutions in complaints. Of the 4,851 complaints dating back to March 2012 when the CFPB first began collecting student loan data, 2,262 or 46.6% of all complaints were about the lender. US Federal Reserve data from 2010/2011 shows Sallie Mae is the nation’s largest student loan lender, responsible for 25% of the market

The other major lenders in this space include Wells Fargo, JP Morgan Chase, PNC, and Discover. In complaints, AES/PHEAA came in second with 546, or 11.3% of all complaints. Wells Fargo, Citibank and JPMorgan Chase each had between 5% and 7.5% of all complaints, totaling 918 complaints between them. 78 other lending institutions round out the list of organizations with complaints filed against them for student loans.

Few of the complaints originate from people with problems with federal student loans. Less than 1%, 35 total, are for these types of loans, with Sallie Mae accounting for the bulk of complaints with 17 total. 14 other lending institutions have 3 or fewer complaints. For non-federal student loans, Sallie Mae is still the leader for complaints, with 2245 or 46.6% of all non-federal student loan complaints.

The Consumer Financial Protection Bureau sorts complaints into three issues: Problems when you are unable to pay, Repaying your loan, and Getting a loan. None of the federal loans had complaints about getting a loan. For non-federal loans, 65.5% of the 4,816 complaints related to loan repayment. Sallie Mae led in total complaints in this category with 1467. They were followed by AES/PHEAA with 356, Wells Fargo with 231, Citibank with 201, Discover with 158, JPMorgan Chase with 154, ACS Education Services with 143, and KeyBank NA with 116. CFPB says loan repayment issues include a basket of claim types including “fees, billing, deferment, forbearance, fraud, and credit reporting.” Problems when you are unable pay accounts for 30.8% of the complaints. Sallie Mae had 698 complaints. They were followed by AES/PHEAA with 181, JPMorgan Chase with 106, Wells Fargo with 104, Citibank with 70, and KeyBank NA with 58. Many of the complaints are, according to the CFPB, because borrowers have difficulty getting deferrments on loan repayment as a result of being unable to find employment.

The total complaints against Sallie Mae for September of this year is 2 fewer than the same time last year. The company’s performance this year compared to last year has been mixed. March and June numbers were down over 150 complaints from the same month a year before. April, May, July and August all saw increases of 17–43. Of the top six lenders by volume of complaints, only AES/PHEAA and Citibank saw drops every month between March and September from the total volume in the previous year. Wells Fargo had a gain of 1 in August and 6 in May from the previous year. JPMorgan Chase had a difference of 0 from the same month last year for April, 3 more this year for May, and 4 more for August. Discover saw an increase every month from the same period last year except for September. When the total complaints differences from year to year for March to September are counted, this year has 571 fewer complaints against the top six lenders.

Most, 1470, of the complaints against Sallie Mae were closed with explanations. 10.2% were closed with monetary relief. 7.7% were closed with non-monetary relief. 2.1% were closed with relief and 12.1% were closed without relief. AES/PHEAA’s complaint closure picture was much different. 40.1% of AES/PHEAA’s 546 complaints were closed with non-monetary relief, 35.3% were closed with explanations and 21.2% were closed without relief. Of the eight lending institutions with 100 or more complaints filed against them, Discover was the institution most likely to result in a closure with monetary relief with 12.9% of all their closures ending this way. Citibank was the institution with the highest percentage of closures ending with no relief at 26.0%.

Complaints over student loan lenders were geographically distributed, coming from 3,447 different zip codes. The largest cluster of complaints is for 20001, a Washington D.C. zip code with 10 complaints originating from there. 07950, the zip code for Morris Plains, New Jersey, and 37013, the zip code for Antioch, Tennessee, each had 8 complaints originating from them. Zip codes for Patchogue, New York; Philadelphia, Pennsylvania; Washington D.C.; and Arlington, Virginia each had 7 complaints originating from them. By volume of complaints by state, New York led with 497, with California second with 467, Pennsylvania third with 303, Florida fourth with 288 and Ohio fifth with 219 complaints. US Territories largely occupied the bottom spots. The Northern Marianas Islands, with a population of around 50,000, had 1 complaint. The U.S. Armed Forces – Pacific had 3. North Dakota and U.S. Armed Forces – Europe had 5 complaints each. South Dakota had 7. Wyoming had 8. Puerto Rico and Alaska had 9 each. Rounding out the bottom five states by volume of complaints, Mississippi had 11.

With the possibility of a United States government federal shutdown looming on October 1, student loans may be impacted because of potential for an automatic increase in interest rates.

Wednesday, July 26, 2006

Buffalo, New York –The preliminary hearing for a lawsuit against the Elmwood Village Hotel proposal has been pushed back to August 10, 2006.

The hotel would require the demolition of at least five properties owned by Hans Mobius, 1109-1121 Elmwood and would cause the closure of several businesses. Already, two businesses, Skunk Tail Glass and Six Nations Native American Gift Shop have relocated, outside the Elmwood Strip. Don apparel, H.O.D. Tattoo and Mondo Video still remain on Elmwood; however, Mondo Video is planning on moving to a new location. The hotel will be 72 rooms and will cost at least 7 million dollars to build. Savarino Construction Services Corporation would be in charge of building the hotel and Wyndham Hotels would operate it.

Attorney Arthur Giacalone says that the court date was pushed back because “the court apparently felt it did not make sense to proceed with oral argument on 7/27 if Savarino is going to re-start the process.” Giacalone also stated that the decision to adjourn until August 10 “was not my idea.” On July 13, 2006 Savarino announced that they were withdrawing the proposal to “resubmit” it to “shed the lawsuits” against the proposal.

Savarino was allegedly supposed to resubmit the proposal by the end of last week but so far has not done so. The final meeting of Buffalo’s Common Council for the summer occurred today. The Council will not meet again until September.

“If they [Savarino] took no action today, re the hotel, [that is, accepting the new application, or rescinding the prior rezoning resolution], nothing official will happen for the next 6 weeks or so,” added Giacalone also saying that if this is the case, “the court may not be willing to hear oral argument on 8/10 since we will still be up in the air about what’s going on.” Giacalone also states that he is unsure about “what they [the Common Council] did today.”

Despite the call for a “do-over” of the proposals process, Giacalone still states that his client’s position of the “pending lawsuit will not be ‘moot’ or ‘academic’ unless and until the Common Council rescinds its prior vote(s) that approved the rezoning” for the buildings on Elmwood and one property on Forest Avenues.

Sam Savarino, CEO of Savarino Construction has been contacted, but has not replied to any e-mails. Area councilman Joseph Golombeck has also been e-mailed, but also has not replied.

Wednesday, August 16, 2006

Google on Wednesday inaugurated a free city-wide Wi-Fi system in its home town of Mountain View, California. Google insisted that it had no plans to offer a similar service nationwide. Most residents of Mountain View, can connect to the Internet via a Mesh Wi-Fi network for free. Google said that its network “eventually will cover the entire city” and serve as “testing ground for future innovations.” The network is currently setup in downtown Mountain View, and much of the suburbs are yet to be hooked up.

The wireless network (Wi-Fi) covers 90% of Mountain View. It offers maximum data transfer rate of up to 1 Megabit per second, which is slightly slower than DSL.

The system costs about US$1 million to build and uses 380 transceivers mounted on street-lights throughout the 31 km² city. Reviews of the network say that it works smoothly in open areas, but that connections can be patchy in enclosed spaces.

Chris Sacca, Google’s head of special initiatives, said that “the main purpose of his company’s backing local wi-fi access is to clear the way for broadband entrepreneurs and overcome legal roadblocks by established telephone and cable TV providers”.

Mountain View, which has about 72,000 residents, is the largest U.S. city with totally free Internet access available throughout the entire community.

Thursday, January 29, 2009

The International Labor Organization (ILO), a branch of the United Nations concerned with labor and workers’ rights issues, issued a report Wednesday explaining how the global economic crisis could create a global employment crisis by the end of the year.

“By the end of 2008 working poverty, vulnerable employment and unemployment were beginning to rise as the effects of the slowdown spread,” the report states. “If the recession deepens in 2009, as many forecasters expect, the global jobs crisis will worsen sharply.” Even for those who keep their jobs, the report predicts that “earnings and other conditions of employment will deteriorate.”

In a worst-case scenario, the ILO says 51 million jobs could be lost in 2009, meaning that 7.1% of the world’s working population would be out of a job. In a more realistic scenario, the report foresees a loss of 30 million jobs, with a global unemployment rate of 6.5%. The unemployment rate has increased in recent years, from 5.7% in 2007 to an estimated 6% in 2008.

Even the report’s most optimistic scenario for this year, a loss of 18 million jobs at an unemployment rate of 6.1%, is not much different than the ILO’s October 2008 prediction of 20 million jobs lost this year due to the financial crisis.

The report warns that developing countries in South Asia and Subsaharan Africa will be harshly affected by the economic crisis. Although working poverty – defined as having daily wages of US$2 or less – is on an overall decline, these regions are still characterized by poor working conditions, low salaries, and an insecure job market. This will only worsen in 2009, according to the ILO.

“Taking into account that a wage and salary job in poor regions may still not ensure all the components of a decent job, it becomes understandable that only a minority of working people have a job that is well paid, respects their fundamental rights and ensures some security in case of job loss, personal or family illnesses, or other difficulties.” The report says that by the end of 2008, nearly 53% of workers around the world could be in “vulnerable employment”.

In terms of actual unemployment, however, developed countries are the ones most likely to be affected by the downturn, as they are more tied to the global financial system. The unemployment rate in the European Union and other developed economies increased by 0.7 percentage points in 2008, the largest increase of all regions. “Globalization combined with rapid technological advances is another challenge for labour markets in the region,” the ILO says. “It is important for workers and employers to be ready and able to adjust quickly to change and to stiffer competition.”

Still, the unemployment rate of 6.4% in these developed countries is far less than in North Africa and the Middle East, which had unemployment rates of 10.3% and 9.4% respectively. East Asia had the lowest unemployment rate of the regions at 3.8%.

The report urged global economies to take cooperative measures, including working with the United Nations, in order to stem the economic crisis. It also asks governments to address the “negative social consequences of globalization” by placing on emphasis an social justice-based programs targeted toward women, youth, and other “vulnerable groups”.

In particular, the ILO says governments should establish public infrastructure projects such as road construction, expand health insurance and unemployment benefits, and focus on the creation of green jobs when devising their stimulus plans. “When governments design fiscal stimulus packages, it is important that they consider employment-related goals, including explicit employment growth targets,” the report concluded.

“In the world, there remains a huge untapped labour potential, and economic growth and development could be much higher if everyone was given the chance of a decent job.”

Saturday, September 10, 2005

One of Britain‘s largest domestic energy suppliers, British Gas, has announced that it is to raise the price of its gas and electricity prices by a record 14.2%. It blames the price rise on increasing wholesale gas prices, which have gone up by over 50% in the past year, the rising cost of oil & the increasing difficulty in getting gas from the North Sea, a major gas field for the United Kingdom.

250 000 people on low incomes will receive a one-off GBP 60 (USD 110.35 , EUR 88.93) rebate to alleviate this price rise.

This follows increases from other suppliers including Powergen and EDF Energy, with both having risen their prices by 7 to 12%. Energywatch, Britain’s consumer energy watchdog has said domestic gas and electric bills have gone up by 17 and 22% on average respectively in the last 18 months to August.

In 2004, British Gas increased its prices by 5.9% in January and 12.4% in September.

Across the water in Ireland, the Irish government approved a 25% increase on gas prices by the state owned monopoly, Bord Gais.