How Do You Spell "Uncle Tom"? A-L-S-H-A-R-P-T-O-N

Published on December 10, 2005 By Gideon MacLeish In Politics

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/28/AR2005112802025.html

I referenced this in a response on another blog. Al Sharpton has taken on a new gig: pitching car title loans to a Georgia company called Loan Max ("sticking up for the little guy" as he calls it).

Now, as a person who has grown up poor, I can speak with experience on this sort of company. The way it works is you go in and they give you a set amount of money based on what you have to offer for collateral and your income. Then you make monthly payments, at varying interest rates (in the case of CarMax, 30% per month...or $300 per month on a $1000 loan). When you've "paid down" the principal in a couple months, you usually have the option of refinancing at the same terms. In the case of most families, because they're spending more money than they have, they wind up spending several times the cost of the loan. In fact, most loans don't get paid off at all, but rather end up in default after the family has paid well more than what they borrowed...it is basically legal loan sharking, and it's a trap that many of the honest poor in this country fall prey to every day.

The irony of it all is that this comes from a "minister" who calls blacks such as Condoleeza Rice, Colin Powell and Clarence Thomas "Uncle Toms". All the while he is helping legally steal money from the pockets of the poor he claims to champion.

Al Sharpton is one of a number of liberal blacks who could do a whole lot to help inner city persons of color. He could work with lending institutions and black businesspersons to create a lending institution designed to target the same people as these title loan companies. Because of the higher risk, the interest rates would necessarily be somewhat higher, but not to the astronomical standards of car title loan places. And he could help institute a truly progressive system that allowed for rebates of interest payments and/or interest rate reduction for a history of on time payments. In short, he and others like him could use the free market to make a better America for persons of color.

Question is, why don't they?

Comments

ParaTed2k

on Dec 10, 2005

We used to call "Car title loan" and "Check to Cash" places "Urban Banks". I don't consider them dishonest, since they make the terms of the loan more than clear to their customers, but I also think they have a terrible code of ethics.

As for Sharpton getting in on the gravy, it doesn't surprize me, but it does disgust me. You are right, he could be using his money and his clout to help the Black people he lies about looking out for.

To him Condoleeza Rice, Colin Powell and Clarence Thomas are "Uncle Toms", but from where I sit, Al Sharpton would gladly be the one putting the stripes onto the back of any slave... as long as he got paid for doing it.

Dr Guy

on Dec 10, 2005

(in the case of CarMax, 30% per month...or $300 per month on a $1000 loan).

I think you mean loan Max.

But in answer to your question, he sold his soul to the liberal massa leadership long ago. He cares not for blacks, just this seat of power at the democrat table.

Gideon MacLeish

on Dec 10, 2005

I agree. I don't question their right to exist in a free market as long as they have open disclosure on loan terms, but no advocate for the poor should be shilling for them as Sharpton is doing. Further, they SHOULD be providing reasonable options (I think I outlined a pretty GOOD option, frankly) to keep people from falling into these traps.

Sidenote: In the day when we had little recourse but to go to one of these places, I would always make sure to take a handful of pens every time I went in. That way I at least had SOMETHING to show for the exorbitant fees I was paying.

I think you mean loan Max.

Noted and corrected.

singrdave

on Dec 10, 2005

So Al Sharpton is advertising on behalf of a payday loan center? The unscrupulous businesses that charge exorbitant interest rates on car titles and unreceived paychecks? Yikes. That is not the financial responsibility that we should be encouraging, especially for the "downtrodden" black masses. And potential customers will add more credence to Loan Max since a prominent religious leader is their spokesman. Not a good cycle.

He cares not for blacks, just this seat of power at the democrat table.

He likes having the cameras on him.

Pink Ice

on Dec 10, 2005

Well said, I might add. I have disliked "Reverend" Al Sharpton's tactics for years as a so called "leader" of the African-American community. He is a disgrace to the individuals who laid the foundation for the civil rights movement. Of course, I do not consider myself to be either a liberal or a conservative as I think all politicians are corrupt. Absolute power corrupts absolutely.

I think some people attain "a position" and forget about those "whose votes they were petitioning a few years ago." It saddens me that he would rather help the rich get richer by making the poor poorer. I also think that people should stop looking for leaders in cease pools . . .

Dr Guy

on Dec 10, 2005

He cares not for blacks, just this seat of power at the democrat table.

He likes having the cameras on him.

Kind of the same thing.

Gideon MacLeish

on Dec 12, 2005

Another thing they never tell you is that the downpayment you make on these cars actually pays for the car 100%, if the customer drives off and never makes a single payment, the car lot has still made its money. Its like that with almost all the "buy here, pay here" car dealerships.

We have a dealer here who privately brags that he makes more on beat up junk cars than on new cars...because the buyers get fed up with the POS after 3 or 4 payments, then let the dealership take it back. The dealer often resells the same car 5 or 6 times this way.

Gideon MacLeish

on Dec 12, 2005

And it does bear mentioning that used car buyers will need to investigate a vehicle's history more closely after Hurricanes Katrina and Rita. A lot of those cars in NO are going to end up being sold at auction...meaning they'll get into the hands of more unsuspoecting "little guys".

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