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99%Spring

MinnesotansforaFairEconomy

www.mnfaireconomy.org

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PaydayLendingReportRelease 4/17/12

Mostcustomerscantaffordtorepaythewholeloaninjustafewweeks,andifthepaydaylenderdepositstheircheck,itwillbounce,costingthecustomerevenmoreinfees.Soinsteadofincurringbounced-checkfees,thecustomer

agreestorenewtheloanandjustpaystheinterest,ortakesoutanewloantopayofftheoldone,leadingtoacycleofdebtthatcanlastformonthsorevenyears.

PredatoryPaydayLendinginMinnesotaHowU.S.BankandWellsFargoHurtConsumerswithCashFastLoans

NewYorkTimes|ChasingFees,BanksCourtLow-IncomeCustomersHuffingtonPost|WellsFargoExtendsLoanswithInterestRatesUpto274PercentStarTribune|ReportRipsBanksonPaydayLoansMPR|AdvocatesSayUSBank,WellsFargoLoansPreyonLow-incomeBorrowersMinneapolisSt.PaulBusinessJournal|MNGroupClaimsBigBanksUsingPaydayLoansTwinCitiesBusiness|U.S.Bank,WellsFargoCriticizedforHigh-APRLoansMinnesotaDaily|U.S.BancorpsMoneyTalks

ChasingFees,BanksCourtLow-IncomeCustomersJenniferSilver-GreenbergandBenProtess|NewYorkTimes|April25,2012WhenDavidWegnerwentlookingforacheckingaccountinJanuary,hewaspepperedwithoffersforlow-endfinancialproducts,includingaprepaiddebitcardwithnumerousfees,ashort-termemergencyloan

withsteepcharges,moneywireservicesandcheck-cashingoptions.

Imayaswellhavegonetoapaydaylender,saidMr.Wegner,a36-year-oldnursingassistantinMinneapolis,whoendedupchoosingalocalbranchofU.S.Bankandavoidedthepaydaylenders,pawnshopsandcheckcasherslininghisneighborhood.

Alongwithacheckingaccount,heselecteda$1,000short-termloantohelppayforhiscysticfibrosis

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medications.Theloancosthim$100infees,andthatwillescalateifitgoesunpaid.

AnincreasingnumberofthenationslargebanksU.S.Bank,RegionsFinancialandWellsFargoamongthemareaggressivelycourtinglow-incomecustomerslikeMr.Wegnerwithalternativeproductsthatcancarryhighfees.Theyarerapidlyexpandingtheseofferingspartlybecausetheproductswerelargely

untouchedbyrecentfinancialregulations,andalsotorecoupthebillionsinlostincomefromrecentlimitsondebitandcreditcardfees.

Bankssaythattheyareofferingavaluableserviceforcustomerswhomightnototherwisehaveaccesstotraditionalbankingandthattheycanoffertheseproductsatcompetitiveprices.TheConsumerFinancialProtectionBureau,anewfederalagency,saiditwasexaminingwhetherbanksranafoulofconsumerprotectionlawsinthemarketingoftheseproducts.

Inthepushforthesecustomers,banksoftenhaveanadvantageoverpaydayloancompaniesandotherstorefrontlendersbecause,eventhoughbanksareregulated,theytypicallyarenotsubjecttointerestratelimitsonpaydayloansandotheralternativeproducts.

Somefederalregulatorsandconsumeradvocatesareconcernedthatbanksmayalsobesteeringpeopleatthelowestendoftheeconomicladderintorelativelyexpensiveproductswhenlower-costoptionsexistatthebanksorelsewhere.

Itisadisquietingdevelopmentforpoorcustomers,saidMarkT.Williams,aformerFederalReserveBankexaminer.Theyaregettingpushedintohigh-feeoptions.

Welookatalternativefinancialproductsofferedbybothbanksandnonbanksthroughthesamelenswhatistheriskposedtoconsumers?saidRichardCordray,directorofthebureau.Practicesthatmakeithardforconsumerstoanticipateandavoidcostlyfeeswouldbecauseforconcern.

Analystsinthebankingindustrysaythatlendingtolow-incomecustomers,especiallythosewithtarnishedcredit,istrickyandthatbankssometimeshavetochargehigherratestooffsettheirrisk.Still,inanAprilsurveyofprepaidcards,ConsumersUnionfoundthatsomebanksprepaidcardscomewithlowerfeesthannonbankcompetitors.

Whilebankshaveofferedshort-termloansandsomecheck-cashingservicesinthepast,theyareintroducingnewproductsandexpandingsomeexistingones.Lastmonth,WellsFargointroducedareloadableprepaidcard,whileRegionsFinancialinBirmingham,Ala.,unveileditsNowBankingsuiteofproductsthatincludesbillpay,checkcashing,moneytransfersandaprepaidcard.

TheRegionspackageismeanttoattractthegrowingpay-as-you-goconsumer,saidJohnOwen,thebanksseniorexecutivevicepresidentforconsumerservices.

Thepackagesarethelatesttwistoncross-selling,inwhichlenderscompetetowinalargershareofcustomerbusinesswithdealsonchecking,savingsaccountsandmortgages.

Reachingtheso-calledunbankedorunderbankedpopulationpeoplewhousefew,ifany,bankservicescouldbelucrative,industryconsultantssaid.KimberlyGartner,vicepresidentforadvisoryservicesat

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theCenterforFinancialServicesInnovation,saidthatsuchborrowerswerea$45billionuntappedmarket.

TheFederalDepositInsuranceCorporationestimatesthataboutninemillionhouseholdsinthecountrydonothaveatraditionalbankaccount,while21million,or18percent,ofAmericansareunderbanked.

Mr.Wegner,theU.S.Bankcustomer,saidthatoncehementionedthatheneededabankaccount,anemployeestartedsellinghimprepaidcards,checkcashingandshort-termloanoptions.Mr.Wegner,whomakesabout$1,200amonth,saidthathefeltlikeasecond-tiercustomer.

ItwasclearthatIwasnotgettingthesamepitchesthatwealthyclientswould,hesaid.Sincethatinitialvisit,Mr.Wegnersaidheavoidedthebranchsohewasnotapproachedwithoffers.gothroughthedrive-throughnow,he

said.

Bankpaydayloans,whichareofferedasadvancesondirect-depositpaychecks,areaparticularlyvexingpartofthenewpitchfromlenders,consumeradvocatessaid.Theshort-term,high-feeloans,liketheoneMr.Wegnerreceived,areofferedbyahandfulofbanks,includingWellsFargo.InMay,Regions

introduceditsReadyAdvanceloanafterdeterminingthatsomeofitscustomerswereheadingto

storefrontpaydaylenders.

Theloanscangetexpensive.Whentheloancomesdue,thebankautomaticallywithdrawsfromthecustomerscheckingaccounttheamountoftheloanandtheoriginationfeetypically$10forevery$100borrowedregardlessofwhetherthereisenoughmoneyintheaccount.Thatcanleadtooverdraftandotherfeesthattranslateintoanannualinterestrateofmorethan300percent,accordingtotheCenterforResponsibleLending.

TheOfficeoftheComptrolleroftheCurrency,whichoverseesthenationslargestbanks,saidinJunethattheloansraisedoperationalandcreditrisksandsupervisoryconcerns.Lastsummer,federalbankregulatorsorderedMetaBank,whichisbasedinIowa,toreturn$4.8milliontocustomerswhotookout

high-interestloans.

Lendersarealsojoiningtheprepaidcardmarket.In2009,consumersheldabout$29billioninprepaidcards,accordingtotheMercatorAdvisoryGroup,apaymentsindustryresearchgroup.Bytheendof2013themarketisexpectedtoreach$90billion.AbiglureforbanksisthatprepaidcardsarenotrestrictedbyDodd-Frankfinancialregulationlaw.Thatexemptionmeansthatbanksareabletochargehighfeeswhenaconsumerswipesaprepaidcard.

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Thecompaniesdistributingthecardshavedrawncriticismfornotclearlydisclosingfeesthatcanincludeachargetoactivatethecard,loadmoneyonitandeventocallcustomerservice.CustomerswithaconvenientcashprepaidcardfromU.S.Bank,forexample,paya$3feetoenroll,a$3monthlymaintenancefee,$3tovisitabanktellerand$15dollarstoreplacealostcard.

CapitalOnechargesprepaidcardusers$1.95forusinganA.T.M.morethanonceamonth,whileWellsFargocharges$1tospeaktoacustomerserviceagentmorethantwiceamonth.

Somesmallerbanksevenofferprepaidcardswithcreditlines,whichcarrysteepinterestcharges.

Thisisatwo-tiered,separateandunequalsystemanditisworsening,saidSarahLudwig,alawyerwhostartedtheNeighborhoodEconomicDevelopmentAdvocacyProject.

Somelendersareevenstylingtheirofficestolooklikecheck-cashingstores.InJune,RedstoneFederalCreditUnion,thelargestcreditunioninAlabama,willopentwostoresthataredesignedtolookexactlylikecheckcashers.

Oneofthestores,inDecatur,Ala.,ispartofarun-downstripmallandincludesasignthatsaysRightChoice,MoneyServices.Anadjacentstore,notaffiliatedwithRedstone,advertisesloansforpeoplewhoneedmoneyfast.

Itlookslikeacheckcasher,butonceyougetinsideyougetthebestofbothworlds,PeterAlvarez,Redstonesemergingmarketsmanager.Thestoreswilloffertraditionalcheckingandsavingsaccountsalongsideprepaidcards,moneytransferandbillpaying.Wewantedtoattractpeoplewhowouldntnaturallycometoabank.

WellsFargoExtendsLoanswithInterestRatesUpto274Percent

BonnieKavoussi|HuffingtonPost|April17,2012

BigbanksareparticipatinginapracticecommonlyassociatedwiththeuseofbigsignstolurevulnerableAmericans.

WellsFargo,thecountry'sbiggestbankbymarketvalue,andU.S.Bank,theninthlargestbankbyassets,arehelpingbankrollthepaydaylendingindustry,accordingtoareportreleasedearlierthisweekby

MinnesotansforaFairEconomy,anadvocacyorganization.

Accordingtothereport,WellsFargoandU.S.Bankhavebothfinancedtoppaydaylendersandextendpaydayloanstotheirowncustomersatsky-highinterestrates:365percentperyearforU.S.Bankand274percentforWellsFargoon$500loans.

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Thefindingscomeasbigbanksfacegrowingscruitinyfortheirpaydaylendingactivities.RichardCordray,directoroftheConsumerFinancialProtectionBureau,saidinJanuarythatthebureauplanstolookclosely

atbigbanksthatmakepaydayloans.

Thenation'stopconsumercopislikelyzeroinginonthe

practicebecauseit'softenthemostfinanciallyvulnerableconsumersthatpaydaylendersaretargeting.AboutoneinfourbankpaydayborrowersareSocialSecurityrecipients,and,onaverage,bankpaydayborrowersareindebt175daysperyear,theCenterforResponsibleLendingfoundinareportlastyear.

SinceWellsFargoandU.S.bankarenationallychartered,theyaregettingaroundsomestatelawsthatregulatepaydaylenders,accordingtotheMinneapolisStar-Tribune.

WellsFargoandU.S.Bankalsohavefinancedsomeofthelargestpaydaylendersinthecountry.WellsFargohasfinancedAdvanceAmerica(with2,313stores),AceCashExpress(with1,200stores),CheckintoCash(with1,100stores),Check'N'Go(with1,000stores),CashAmerica(with655stores),EZCorp.(with450stores),DollarFinancial/MoneyMart(with312stores),andFirstCashFinancial/Cash&Go(with226stores),accordingtotheMinnesotareport.U.S.BankalsohasfinancedAdvanceAmerica,CashAmerica,andEZCorp.,thereportsays.

Still,WellsFargoandU.S.BanktoldtheStar-TribuneonMondaythattheydonotengageinpaydaylending.Theysaidtheirservicesarecalled"checkingaccountadvances"or"directdepositadvances."

Meanwhile,somestatesaretryingtocrackdownonpaydaylenders.SomeRhodeIslandDemocraticlawmakersarepushingtocutthemaximumannualinterestratethatpaydaylenderscanchargeto36percentfrom260percent,accordingtotheProvidenceJournal.

Throughaproposedballotinitiative,Missouri'ssecretaryofstatealsowantstocaptheannualinterestratechargedbypaydaylendersat36percent,accordingtotheKansasCityStar.Acountyjudgerecentlyruledthattheproposedballotinitiative'ssummarywas"inadequate,"butMissouri'ssecretaryofstateplanstoappealthedecision.

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ReportRipsBanksonPaydayLoans

AMinnesotagroupclaimsfourbanks,includingWellsFargoandU.S.Bank,chargeasmuchas365percentinterestonsuchloans.

JenniferBjorhous|StarTribune|April17,2012AsregulatorscrackdownonstorefrontandInternetpaydaylenders,anewreportsaysfourbigbanks--includingWellsFargoandU.S.Bank--aremajorplayersinthemultibillion-dollarfast-cashindustry,chargingvulnerablepeopleinterestratesashighas365percent.Inmanycases,thefourbankschargeevenhigherfeesandinterestratesfortheiremergencyloansthanpaydaylenders,accordingtoabriefreportreleasedMondaybyMinnesotansforaFairEconomy.ThegroupnamesWellsFargoBank,FifthThirdBank,RegionsBankandMinneapolis-basedU.S.Bank.

TheSt.Paul-basedorganizationclaimsthatWellsFargoandU.S.Bankarehidingbehindtheircharterstoavoidthesortofregulationotherpaydaylendersface.Formedlastyear,thegroupismadeupofcommunitygroups,faithgroupsandlaborgroupssuchastheServiceEmployeesInternationalUnion."Thebanksaregettingawaywithsomethingthathaddrawnlegalactiononthepaydaylendersyouseeonthestreet,"saidKevinWhelan,spokesmanforMinnesotansforaFairEconomy."Wehopetheleadershipateachinstitutionwillreconsider

thesebusinesspractices."WellsFargoandU.S.Bankrepresentativessaytheydon'tengageinpaydaylending.Theycalltheservices"checkingaccountadvances"or"directdepositadvances"andofferalistoffeaturesthatmakethemdifferentfrompaydayloans.Theadvances,forexample,areonlyavailabletopeoplewhohavecheckingaccountswiththebanksandmakeregulardirectdepositsintothem.SanFrancisco-basedWellsFargosaidanotherkeydifferenceisthat,unlikewithpaydaylenders,itdoesn't

rolloverorextendtheadvances.Instead,theamountisautomaticallyrepaidwiththecustomer'snextdirectdeposit,wheneverthatis.Neitherbankactuallycalculatesanannualpercentagerate(APR)oninterestfortheloans,sayingtheychargestraightforwardfees."It'snotappropriatetocalculateanAPRonaflatfeethatmustberepaidwiththenextdirectdeposit,"saidU.S.BankspokesmanTomJoyce.

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U.S.Bankintroducedits"checkingaccountadvance"in2006,hesaid,addingthata2012customersurveyindicated96percentofthecustomersusingitwere"satisfied"or"extremelysatisfied"withit,Joycesaid.AccordingtotheMinnesotansforaFairEconomyreport,a$500advancerepaidinthetypical10-daytermcosts$50atU.S.Bank,whichwouldbeanAPRof365percent.OveratrivalWellsFargo,whichhas

providedsuchadvancessince1994,thefeeforthesameloanis$37.50,whichamountstoanAPRof274percent."Itisanexpensiveformofcreditandit'snotintendedtosolvelong-termfinancialneeds,"saidWellsFargospokeswomanRicheleMessick.Byoneindustryestimate,paydaylendingisanearly$40billion-a-yearindustryintheUnitedStates.Paydaylendershavebeencriticizedforsettingloantermsthatkeepcash-strappedborrowersinperpetuadebt.Nearlyone-quarterofallbankadvancepaydayborrowersreceiveSocialSecurity,accordingtotheDurham,N.C.-basedCenterforResponsibleLending.Manystates,includingMinnesota,havebeencracking

downonstorefrontandclick-for-

cashInternetoperators.Banks,withtheirstateandfederalregulatorsandfederalguaranteesoncustomerdeposits,aresupposedtobedifferent.Criticssaytheyaren't.Bankadvancesarepaydayloansindisguise,theyargue,withtheirshortterms,extrahighcostsandthe

lenders'directaccesstoborrowers'accounts.Bankshavebecomemoreaggressiveinmarketingsuchproducts,saidUriahKing,vicepresidentofstatepolicyattheCenterforResponsible

Lending.BecauseWellsFargoandU.S.Bankarefederallychartered,theysaythey'renotsubjecttostatelaws,hesaid."Ithinkthat'soneoftherealtroubling[developments]inthelastcoupleofyears,"Kingsaid.

ThenewU.S.consumerwatchdog,theConsumerFinancialProtectionBureau,hastargetedillegalpracticesamongpaydaylendersasapriority.Itsinvestigationincludestheemergencydepositadvanceproductsbanksoffer.MinnesotaAttorneyGeneralLoriSwansonhassuedeightnon-bankInternetpaydaylendersinrecentyearsforchargingstrappedMinnesotansunlawfullyhighannualinterestratesofupto782percent.ThestateDepartmentofCommercehastakenonanumberofout-ofstateInternetpaydaylendingcompanies,too.

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Minnesotalawcapsthefeesthatcanbechargedonpaydayloans.Forloansupto$50,forinstance,thecapis$5.50;forloansbetween$350and$1,000,thelimitis33percentannualinterestplusa$25administrativefee.DavidWagner,a36-year-oldMinneapolismanwithcysticfibrosis,saidheusedregularpaydaylendersfor

years.Lastyear,hesaid,hewenttoU.S.Bankseekingtoopenacheckingaccountwithoverdraftprotectionandabankemployeesteeredhimtothedirectdepositadvanceprogram.Onlylaterdidherealizehowexpensiveitwas,hesaid.He'sstillusingitbecausehehopestoestablishanongoingrelationshipwithabank."Idon'thaveachoice,"saidWagner,explainingthathecannotmakeendsmeetwithhisSocialSecuritycheckandhispart-timeworkasahomehealthaide."ThepaydayloansIgethavehelpedwithmedicationandfoodforthehouse,butitdoesn'thelpmegetcaughtupcompletely,"Wagnersaid."Wealmostnevergetahead."

JenniferBjorhus612-673-4683

AdvocatesSayUSBank,WellsFargoLoansPreyonLow-IncomeBorrowers

MadelineBaran|MinnesotaPublicRadio|April17,2012

ST.PAUL,Minn.AnewreportclaimsUSBankandWellsFargoarepreyingonlow-incomecustomersbyofferingshort-termloanswithsteepfees.

ThereportbythegroupMinnesotansforaFairEconomyclaimsthefeesarethesameorworsethanchargesimposedbytraditionalpaydaylenders.MinnesotansforaFairEconomy,whichincludescommunity,faithandlaborgroups,hasaskedWellsFargoandUSBanktostopofferingtheloans.

"Thisproductisadebttrap.That'sit.It'sdesignedforprofitandweseethepainthatitoffers,"saidDarrylDahlheimer,programdirectoratLutheranSocialServiceFinancialCounseling,whosupportsthegroup'seffortstopersuadethebankstostopofferingtheloans.

TheloansareofferedtocustomersatUSBankandWellsFargowhohaveabankaccountingoodstandingandreceivepaychecks,SocialSecuritychecks,orotherincomeviadirectdeposit.Customerscanrequestupto$500inacashadvancewithoutcompletinganapplicationormeetingwithapersonalbanker.Thebanksthentaketheloanamount,plusfees,fromthenextdirectdeposit.

Thecashadvancescomewithconsiderablefees.USBankcharges$2forevery$20borrowed-a10-percentfee.WellsFargochargesslightlyless$1.50forevery$20.Customerspaythesamefeeregardlessofwhethertheypaytheloanbackinadayoramonth.USBankrequirescustomerstopaybacktheadvanceandthefeeswithin35days.

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Forexample,aUSBankcustomerwhotakesouta$100cashadvancepays$10infees.Ifthecustomerpaystheloanbackin10days,thefeesaretheequivalentofa365percentannualinterestrate,thereportsaid.

KevinWhelan,spokespersonforMinnesotansforaFairEconomy,saidhedoesnotknowofanyother

banksthatoffersimilarloans.OfficialsatTCFBankandBankofAmericatoldMPRNewstheydonotofferthistypeofloan.

WellsFargoandUSBankdeclinedtoprovideinformationabouthowmanycustomersrelyoncashadvancesandhowfrequentlycustomersusetheadvances.A2011reportbythenonpartisanresearchandpolicygroupCenterforResponsibleLendingfoundthatnearlyone-quarterofallconsumerswhousebankpaydayadvancesreceiveSocialSecurity.Italsofoundcustomerswhorelyontheloansareindebtfor175daysayearonaverage.Thegroupcompiledthestatisticsusingnationwidecheckingaccountdatafroma

privateresearchfirm.

USBankspokespersonNicoleGarrison-Sprengerdeclinedaninterview

request.Inanemail,shesaidthebank'sproduct,knownasCheckingAccountAdvance,"isasafetynetforcustomerswhohavenootherwaytopayforunexpectedexpensessuchasamedicalemergencyoranautorepair."

Thebankisupfrontaboutthecosts,shesaid,andinformscustomersoflower-costoptionsthatmightbeavailable.ItalsoprovideswhatGarrison-Sprengercalled"mandatory'coolingoff'periods"topreventcustomersfromrelyingtoofrequentlyontheshort-termloans.

Someconsumeradvocatessaythelimitsarenoteffective.USBank

allowscustomerstotakeoutcashadvancesfornineconsecutivestatementcycles.Afterthat,thebankimposesa90-day"coolingoffperiod"beforeallowingcustomerstobeginborrowingagain.

WellsFargoallowscustomerstoreceivecashadvancesforsixconsecutivestatementperiods.Afterthat,thebankreducestheamountacustomercanborrowby$100permonthuntiltheamountreacheszero.

However,thebankoffersanoptiontogetaroundtherestriction,whichitnotesonitswebsite."Youcanavoidthisreductioninyourstandardcreditlimitifyoudonottakeanewadvanceforonecompletestatementperiodatanytime,"thewebsitesays.

WellsFargospokespersonRicheleMessicksaidthebankistransparentaboutthehighfeesandintends

theloanstobeusedonlyinemergencies.ShenotesthatWellsFargoprovidesamonthlypaymentplanforsomecustomerswhocannotpaybacktheadvancewithin35days.

"Itisanexpensiveformofcreditthatisnotintendedtosolvelonger-termfinancialneeds,"Messicksaid."Andwehavepoliciesinplacetohelpensurethatourcustomersdonotusedirectdepositadvanceasalong-termsolution."

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Messicksaidthecashadvancesdifferfromtraditionalpaydayloansbecausethebankdoesnotallowcustomerstoroll-overdebtfrommonthtomonth.Customershavetopaybacktheloanandfeesbeforetheycanborrowagain.

ButDahlheimer,atLutheranSocialService,saidthedistinctionisirrelevant.

"Talkaboutsplittinglegalhairs,mygoodness,"hesaid.

Dahlheimersaidthatforlow-incomeconsumerswhoreceivefinancialcounselingatLutheranSocialService,cashadvancesareoftenthefirststeptoaruinouscycleofdebtandbankruptcy.Customersmightreceivequickcashupfront,hesaid,butwhenpartoftheirnextpaycheckorSocialSecuritycheckisusedtopaybackthatdebt,customerswilloftenhavetroublepayingthatmonth'sbills.Customerswillthenrequestanothercashadvanceforthenextpaycheck,hesaid.

Inthelongrun,whencustomershavereachedthelimitforcashadvancesorcannotpaybacktheamountowed,theyfacebouncedchecks,overdraftfees,andpoorcredit,hesaid.

"It'slikethrowinggasolineonthefireofindebtedness,"Dahlheimersaid."Peoplewhoarefairlydesperate,whohavepoorcredit,can'thaveaccesstotraditionalloans,it'slikehavingaproductouttherelikeanaccelerant,whichiswhatarsonistsuse,tomaketheproblemmuch,muchworsequicker."

Banksarenotsubjecttostatelawsthatregulatetraditionalpaydaylenders,accordingtoWellsFargoandorganizerswithMinnesotansforaFairEconomy.

Opponentsoftheloanshavecontactedfederalregulatorstoaskforabanonbankpaydayloans.LocalcommunitygroupshavealsometwithUSBanktoaskthemtostopofferingtheloans,saidWhelan,theMinnesotansforaFairEconomyspokesperson.

"WethinkthatUSBankandWellsFargo,justbecausetheycareabouttheirimageinthecommunityandwanttodotherightthing,shoulddesignproductswithfeesthatoffershort-termcreditonfairtermsandnottheseexorbitantandpredatoryterms,"Whelansaid.

MNGroupClaimsBigBanksUsingPaydayLoans

MarkReilly|MinneapolisSt.PaulBusinessJournal|April17,2012

Anadvocacygroupiscriticizingarosterofbigbanks,includingWellsFargoandU.S.Bancorp,forusing'payday'-styleloanswhileavoidingthescrutinythatthepayday-loansectorhasdrawnfromregulators.

TheStarTribunereportsonthedispute,whichalsocroppeduplastyear.Thebankssaythey'renotofferingpaydayloans,but"directdepositadvances,"whilethegroup,MinnesotansforaFairEconomy,saystheresultisthesameconsumersgettrappedunderdebtandhighinterestrates.

MinnesotahascrackeddownonInternet-basedpaydaylendersinrecentmonths.

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U.S.Bank,WellsFargoCriticizedforHigh-APRLoans

Alocaladvocacygroupreleasedareportstatingthatfourlargebanks,includingU.S.BankandWellsFargo,arechargingpeopleinterestratesashighas365percent.

NataleeyaBoss|TwinCitiesBusiness|April17,2012

St.Paul-basedadvocacygroupMinnesotansForaFairEconomyhascriticizedfourlargebanks,includingU.S.BankandWellsFargo,forchargingcustomersexorbitantratesashighas365percentonloansthatresemblepaydayloans.

InareportreleasedMonday,thegroupsaidthatwhileregulatorsareconstantlycrackingdownonsmallerpaydaylendersforchargingcustomershigherfeesandinterestratesthanallowedbyMinnesotalaw,fourlargebankschargeevenhigherratesfortheiremergencyloans.InadditiontoMinneapolis-basedU.S.BankandSanFrancisco-basedWellsFargo,whichhasamajorMinnesotapresence,thegroupalsonamed

FifthThirdBankandRegionsBankinitsreport.

Thebanksaregettingawaywithsomethingthathaddrawnlegalactiononthepaydaylendersyouseeonthestreet,KevinWhelan,spokesmanforMinnesotansforaFairEconomy,toldtheStarTribune.Wehopetheleadershipateachinstitutionwillreconsiderthesebusinesspractices.

ThegroupcalledoutU.S.Bankscheckingaccountadvanceservice,whichchargescustomers$2forevery$20borrowed,andWellsFargosdirectdepositadvancethatcharges$1.50forevery$20borrowed.Becausethetermsoftheseloansaresoshorttypically10daystheyamounttoextremelyhighannualpercentagerates(APRs):365percentatU.S.Bankand274percentatWellsFargo,accordingtothereport.

However,U.S.BankandWellsFargorepresentativestoldtheStarTribunethattheseadvancesaredifferentfrompaydayloansbecausetheyareonlyavailabletopeoplewhohavecheckingaccountswiththebanksandmakeregulardirectdepositsintothemandbecausetheadvancesareautomatically

repaidwiththecustomersnextdirectdeposit.Inaddition,bothbanksclaimthattheydontactuallycalculateanAPRoninterestfortheloansbecausetheychargestraightforwardfeesinstead.

ItsnotappropriatetocalculateanAPRonaflatfeethatmustberepaidwiththenextdirectdeposit,U.S.BankspokesmanTomJoycetoldtheMinneapolisnewspaper.

U.S.Bankreportedlyintroduceditscheckingaccountadvanceservicein2006.A2012customersurveyfoundthat96percentofthecustomersusingitweresatisfiedorextremelysatisfiedwithit,Joycesaid.

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U.S.BancorpsMoneyTalks(OPINION)

CandiceWheeler|MinnesotaDaily|April25,2012

Ivebeenscrewedoverbymybankahandfuloftimesduetoobsceneoverdraftfeesachargethatcanbeasmuchas$35eachdayitgoesunpaid.

U.S.BankandWellsFargoareofferingtheircustomerswhoreceivepaychecksviadirectdeposittheoptionofshort-termloanstoactasasafetynettocatchthosefeesbeforetheyskyrocket.Somepeoplerelyonthesetypesofloans,whichchargea10percentfee,togetthemoutoftheirfinancialbinds.

TheadvocacygroupMinnesotansforaFairEconomyiscallingthesepaycheckloansanunavoidabledebttrapforlow-incomeborrowers.ThegrouphasalsocriticizedthebanksfortheirlackofforeclosureassistanceinmainlyblackandLatinoneighborhoods.Lastyears$452millionintotalmortgagerevenuewasanall-timerecordforU.S.Bank.

Intheirfirstquarterof2012,U.S.Bankrecordedanetincomeof$1.3billion9percenthigherthan2011.Thesefiguresaredrivenbya7-percentgrowthinnetinterestincomeandan11percentgrowthinfeerevenue.

Butcashadvances,despitethehighfees,canbehelpfulwhenusedasasafetynetforfaultypendingtransactionsthatoftenleadtoanoverdraft.In2011,customerspaidapproximately$31.6billioninoverdraftfees.

U.S.Bankallowscustomerstousetheloanscontinuallyforuptoninemonths,followedby90-daybreakbeforetheycanstartupagain.

Theresnodoubttheseadvancescouldsendthosewhoarefinanciallyunstableintoahabitualcycleofdebt;anyloanorcreditcardcould.Butthereisntnecessarilyanyharminofferingtheloans.Itsessentiallythecustomersdecisionwhetherornottoutilizethefunds,anditsreassuringtohavethatemergencycashavailableatmyfingertips.

CandiceWheelerwelcomescommentsatcwheeler@mndaily.com.

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ShareholderSpring:U.S.BankandWellsFargo

LosAngelesTimes|ProtestersDisruptWellsFargoShareholderMeetingMotherJones|WellsFargoTurnsAwayItsOwnShareholdersFromItsShareholderMeetingStarTribune|U.S.BancorpRideMortgageSurge

KSTPTV|TaxDayRallyFocusesonBanks,WealthyAmericansWCCORadio|ProtestersGatheratU.S.BankShareholdersMeetingTheUptake|U.S.BankandWellsFargoThrowFamiliesontotheStreet

[IntheprintandonlineeditionsoftheLosAngelesTimes,aphotofeaturingSEIULocal26activistGerardoCajamarcawasincluded.CajamarcawaspartofourMinnesotadelegation.Thephotoisincludedbelow.]

ProtestersDisruptWellsFargoShareholderMeeting

Despitethetumult,WellsFargosaid96%ofinvestorscastingnonbinding"sayonpay"votessupportedCEOJohnStumpf's$19.8-millioncompensationpackage.E.ScottReckard|LosAngelesTimes|April25,2012SANFRANCISCOWellsFargo&Co.ChiefExecutiveJohnStumpfgottokeephispay,butlittleelsewentthebanker'swayduringanacrimoniousannualshareholdermeeting.

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DemonstratorsswarmedtheMerchantsExchangeBuildinginSanFrancisco'sfinancialdistricttoprotestthebank'slendingandforeclosurepolicies.Someshareholderscouldn'tgetintothemeetingasthecrowd,whichpoliceestimatedexceeded1,000people,shutdownnearbystreets.

Insidethemeeting,Stumpfwasdisruptedbyprotesterswhomadeitintotheauditorium:"Thetimefortalkisover,"saidRichardSmith,anEpiscopalpriestinthelow-incomeMissionDistrictwhourgedWellsFargoexecutivestoshowcompassionforstrugglingborrowers.Despitethetumult,shareholdersvotedtoembraceStumpf'sstewardship.Thebanksaid96%ofinvestors

castingnonbinding"sayonpay"votessupportedtheCEO's$19.8-million

compensationpackage.He'searnedabout$60millionoverthelastthreeyears.That'sinsharpcontrasttoCitigroupInc.shareholders'votelastweekagainst

CEOVikramPandit's$14.9-millionpaypackagefor2011.ThedifferencebetweenCitiandWellsFargomightreflectthebanks'

comparativeperformanceduringandafterthefinancialcrisis.Citirequiredtwogovernmentbailoutstosurvive,anditsstockstilllanguishesatlessthan10%ofitspre-

crisishigh.Wellsweatheredthecrisisinfarbettershapeandhasrecoveredmorethan90%ofitspre-crisisshareprice,withitsprofitsnowapproachingrecordlevels.Demonstrators,manyfromtheOccupyWallStreetmovement,sayWellsFargo'ssuccesshascomeatitscustomers'expense.TheydemandedthatWellsFargohaltforeclosures,divestinvestmentsinprison-managementcompanies,endhigh-interestpaydaylendingandforgivedebtsofstrugglingborrowerswithunderwatermortgages.

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Eightdemonstratorswerecitedfortrespassingaftercausingdisruptionsatthemeetingorinthestreetsoutside,SanFranciscopolicesaid.Onelong-haired,beardedmanwhoidentifiedhimselfasStardustwasledtoasheriff'svanwithhishandsboundbehindhim,protesting:"Ihavealegalproxytoenterandtheyrefusedme."

Theprotestersoperatedunderthe"99%Power"banner,referringtothosenotamongAmerica'shighestincomeearners.Theyincludedlaborgroups,communityactivistsandacoalitionof30SanFranciscoreligiousleaderswholedaprayersessionwithreadingsfromtheBibleandKoran."Donotprofitbythebloodofyourfellows,"saidaTorahquotationreadbyCamilleShiraAngel,rabbiofaReformsynagogue.Protestersalsopushedamockstagecoachreading"HellsFargo"throughthestreetsandshoutedthroughaloudspeakernexttoagiant,cigar-smokinginflatablerat:"The99%havearrivedatthebuilding.The1%arenotgettingin."

Butintheendthedemonstratorscomplainedtheycouldn'tgetintothemeeting.MargueriteYoung,aserviceworkersunionorganizer,saidWellsFargohadallowedentrybyonly20or30ofmorethan200protesterswhohadboughtsharesofthebank'sstock.Wellshadpackedtheballroomwithworkersfromitsofficesearlyintheday,shesaid."Therestoftheroomabout250peoplearetheirownemployees,membersoftheboardandofficers,"shesaid.WellsspokesmanAncelMartinezsaidaccesshadbeenrestrictedasamatterofsecurity."SanFranciscoP.D.madethecallthatweneededtoshutitdown,"hesaid.

Martinezsaiditwasthefirsttimeinmemorythattherehadbeennoquestionsatanannualmeeting.Itlasted45minutes,comparedwith21/2hourslastyear.scott.reckard@latimes.com

WellsFargoTurnsAwayItsOwnShareholdersFromItsShareholderMeeting

JoshHarkinson|MotherJones|April24,2012

"IwouldnotwanttoworkforWellsFargo,"onewomanonlunchbreakindowntownSanFranciscoloudlytoldherfriend.

Nokidding.Ataroundnoontoday,some2,000activistslaunchedablitzkriegagainstthebank'sannualshareholdermeetingattheMerchantsExchangeBuilding,wheretheyblockedentrances,inflatedatwo-storycigar-smokingratinthestreet,anddeployedhundredsofshareholderactiviststopackthejoint.

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Citingspaceconstraints,thebankturnedawaymanyoftheshareholders,amoveprotestersquicklydecriedasanillegalattempttododgetoughquestions.ApressreleasefromtheactivistgrouptheAllianceofCaliforniansforCommunityEmpowermentclaimedWellsFargopackedthemeetingwithitsownemployees,andcontinuedtoletshareholderswhowerenotpartoftheprotestinthroughasidedoor.

AWellsFargospokesmandidnotimmediatelyreturnmycall.

Inthebuildinglobby,IranintoWellsFargoshareholderAndrewConstans,whowaswearingasuitandtieandholdingapapercopyofhissingleshareofstock.The19-year-oldUniversityofMinnesotastudentflewhalfwayacrossthecountrytotellWellsFargothatitshouldpaymoretaxes.(Between2008and2010,WellsFargopaidnone,butgot$681millionintaxcredits.)"Ipaytaxes,sowhycan'tthey?"Constansasked."I'mnotamultinationalcorporation;Idon'thave60tax

shelters."

TheWellsFargoprotestispartofaneffortonthepartof99%Power,a

coalitionofdozensoflaborandcommunitygroupsthatplanstotargetsome40corporateshareholdermeetingsoverthenextsixweeks."It'sabroadergroupthannormallydoesshareholdersmeetings,"saysStephenLerner,anexecutiveboardmemberwiththeServiceEmployeesInternationalUnion."It'sacampaignthat'ssaying,let'sgatherallthefolkswhoare

impactednegativelybythesegiantcorporationsandletsfigureoutwaystoillustratethatandchallengethemdirectlyatthemeetings."

ThatstrategywasonfulldisplaytodayindowntownSanFrancisco,wheredemonstratorshitWellsFargofromeverypossibleangle.AspeakerwiththeimmigrantsrightsgroupCausaJustapointedoutthatWellsFargoisashareholderinCorrectionsCorporationofAmerica,aprivateprisonfirmthatprofitsfromdetainingillegalimmigrants.BobDonjacour,afreelancecomputerprogrammerandmemberofOccupySanFrancisco,heldasignthatsaid,"StopFundingDirtyPower,"highlightingthebank'sinvestmentsinoilandgas.Otherprotesters

criticizedWellsFargo'sinvolvementintheAmericanLegislativeExchangeCouncil,theexcessivesalaryofCEOJohnStumpf($19millionin2010),and,ofcourse,itsforeclosurepractices.

OnthecornerofPineandSansomeStreets,IranintoartistCherylMeeker,amemberofanOccupy-relatedprotestgroupknownasDon'tJustClickThere."It'saboutdoingthingsinreallife,like,physically,"sheexplained.Shewasblockingtheintersectionwithalongclothbannerwithflamesonitasothersheldupsignsreading,"HellsFargo."

"Doyouthinkwecangetthrough?"askedtwoguysinnicesuits.

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Meekerdeclined,butdidgiveeachofthemadollarbill.Itsportedanimageofhumanspullingastagecoachwiththecaption:"Debtslavery."

Accordingtopressreports,24peoplewerearrestedattheprotests,includingseveralwhodisruptedtheshareholdermeetingfromwithin.Meanwhile,WellsFargoannouncedrecordprofitsandawardedCEO

JohnStumpfa$19.8millionpaypackage.

U.S.BancorpRideMortgageSurgeRevenuegrowthattheMinneapolis-basedbankwasthestrongestintwoyears.Earningsrose28percent,butsharesroseonly1percent.JenniferBjorhous|StarTribune|April18,2012

U.S.BancorpbeatWallStreetestimatesTuesdayonstrongoverallloangrowthplusasurprisingsurgeinmortgageactivity.Althoughprofitsdroppedaskoshfromthepreviousquarter,whenthebankbenefitedfromaone-timesettlementgain,theywereup28percentfromayearearlierto$1.3billion,or67centspershare,toppingWallStreetexpectationsfor64cents.TheMinneapolis-basedbanksawrevenuejump9percentinthefirstquarteroverayearago,to$4.9billion,itsstrongestrevenuegrowthintwoyears.Theincreasereflectsa7.3percentriseinnetinterestincomeandan11.3percentjumpinnon-interestincome,mainlydrivenbystrongmortgagebanking.Thelenderalsoboostedincomebyabout$90millionbysettingasidelesstocoverbadloans.Exceptforhigher-than-expectedearnings,resultswere"rightdownthefairway,"analystsatRobertW.Baird&Co.saidinaresearchnote.U.S.BanksharesclosedTuesdayat$31.55,upabout1percent.U.S.Bankisregardedasoneofthecountry'smostprofitableandbest-runbigbanks,andalready-highinvestorexpectationslikelymutedreactiontothelender'ssolidearningsreport.Investorswerealsolikelyconcernedaboutfeeincomefromdebitandcreditcards,saidErikOja,bankingindustryanalystatS&PCapitalIQ."Ithinkthatwasmuchworsethanexpected,whichisonereasonwhythestockisn'tupthatmuchtoday,"Ojasaid.Ojasaidhewasconcernedaboutthebankbeingabletomaintainthemortgagepaceasitcashesinontheboominpeoplerefinancingtheirmortgages.The$452millionintotalmortgagerevenueisanall-timerecordforthebank,hesaid,andabouttwicewhatitusuallymakes."It'sunsustainable,butit'sreallygood,"Ojasaid.

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Inaconferencecallwithanalysts,U.S.BancorpCEORichardDavissaidthecompanyhasbeenstrategicallytakingmortgagebusinessfromsmallerbanksandlargerbanksbackingawayfromthatsector.It'samarketshareopportunity"youonlygetonceinalifetime,"hesaid.Thebank'sothersourceofrevenue,netinterestincome,sawgrowthdrivenbyinvestmentsecurities,a

changeintheclassificationofcreditcardbalancetransferfeesasinterestincomeanda6.4percentriseinaveragetotalloans,includingresidentialmortgages,commercialloans,creditcardloansandcommercialrealestateloans.Itsmortgageloanvolumegrewby20percent,anditscommercialloanvolume,whichincludesloanstosmallbusinesses,rose17percent.Thebank'screditcardbalancewasboostedbyitsacquisitionofa$700millionportfolioofcreditcardsfromBankofAmerica.Analystssaidit'sdifficulttoknowjusthow

muchofthebank'soverallloangrowthisorganic,asopposedtotakingbusinessawayfromcompetitors.DavistoldanalyststhatU.S.Bankexpectstorecoupbyyear'sendabouthalftherevenueithaslostfromvariousnewfederalregulations,suchasacaponwhatbankscancollectondebitcardswipes.Withoutelaborating,hesaidpartofthatrecoverywillcomefrom"someincreaseincertainfeecategories."

"We'regoingtobeverycareful,"hesaid.Davidalsoindicatedthebankmaymakemoreacquisitionsinotherbanks,orcorporatetrustandpaymentoperations.Thebankannouncedlastmonththatitwillraisethedividendpayoutforshareholders56percentto78centspersharefrom50centsannually.Italsosaiditwillbuyback100millionsharesofcommonstockoverthenextyear.Itrepurchased

16millionsharesinthefirstquarter.Atthebank'sannualshareholdersmeetingTuesdayindowntownMinneapolis,Davisfieldedseveralquestionsfromattendeesonforeclosures,taxesandthecriticalneedforbankstofacilitatewiretransfersofmoneytoSomalia,amajorissuefortheSomalicommunityinMinnesota.ManyofthepeopleaskingquestionswerelinkedtoaSt.Paul-basedactivistgroupcalledMinnesotansforaFairEconomy,acoalitionofcommunity,faithandlaborgroupsthatalsoorganizedaprotestoutsidethemeeting.

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OnMonday,thegroupissuedashortreportcriticaloftheexpensiveshort-term,emergencyadvancesthatbothU.S.BankandWellsFargomaketocustomerswithdirectdepositcheckingaccounts,accusingthemofmakingpaydayloansthattakeadvantageofvulnerablepeople.

JenniferBjorhus612-673-4683

TaxDayRallyFocusesonBanks,WealthyAmericansScottTheisen|KSTPTV|April17,2012SomeMinnesotansusedthistaxdeadlinedaytoprotestbanksandwealthyAmericans,whotheysaydon'tpaytheirfairshareintaxes.

ThegroupMinnesotansforaFairEconomyledarallyoutsidetheMinneapolisConventionCenter,whereU.S.Bankhelditsannualshareholdermeeting.ProtesterssaythebanksareholdingontotheirprofitstootightlyandnotdoingenoughtohelpaverageAmericans.

ProtestersGatheratU.S.BankShareholdersMeetingChrisSimon|WCCORadio|April17,2012

MINNEAPOLIS(WCCO)ProtestorsgatheredTuesdaymorningoutsidetheMinneapolisConventionCenter,whereshareholdersoftheMinneapolis-basedU.S.Bankwerescheduledtostarttheirannualmeeting.ThegroupMinnesotansForaFairEconomyisusingTaxDaytounderscorethedemandthatbigbanksdomoretohelpthe99percent.KevinWayland,withthegroup,saysanumberofAmericansareunhappywithhowrichcorporateAmericaandpoliticianshavegottenawaywithcreatingeconomicturmoil.PeoplearegoingtorallyoutsidehereoftheU.S.Bankshareholdersmeeting,andtheywillthenmarch

downtotheWellsFargoheadquartersandaskthatthebanksthatgotbillionsinbailoutsstartpayingtheirfairshareoftaxesandstoplobbyingforloopholesandtaxbreaksforCEOsandbig,bailed-outbanks,saidWayland.HesaidthegroupsdemandisthatbankslikeU.S.BankandWellsFargostoplobbyingfortheinterestsoftheso-called1percentandbegintoactonbehalfofthecommunitiesthattheyserve.

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U.S.BankandWellsFargoThrowFamiliesontotheStreetJacobWheeler|TheUptake|April17,2012

IfUSBankandWellsFargotrulycareaboutthiscommunity,whyaretheysointenttothrowfamiliesoutonthestreet,andemptytheneighborhoodsofMinneapolis,askedSEIUactivistMarkFreemanataspiritedTaxDayrallyinfrontofWellsFargosheadquarters.

Meanwhile,activistswithMinnesotansforaFairEconomy,homeownerswhohavetakentheOccupyHomespledgetostayintheirforeclosedproperties,andSomaliAmericanswhoareunabletotransfermoneytofamiliesintheirwar-tornhomeland,successfullypenetratedUSBanksshareholdersmeetingattheMinneapolisConventionCenter.TheypepperedCEORichardDaviswithdemandsthatUSBankpaymoreintaxesandnegotiatewithhomeowners

facingforeclosurewhosemortgagesareorwereatonetimecontrolledbyUSBank.

Pressureonbigbanksworking

The99%havebeenputtingpressureonUSBankandotherbigbanksformonthsnowanditsworking,saidJohnVinje,whoseBloomington,Minnesota,homeisatriskofbeingsoldthroughasheriffssale.Wewillstayinourhomeandwanttofindasolutionwiththebank.ImheretodaytoappealpersonallytotheCEOofUSBank,askinghimforhisassistanceinmakingsurethathappens.

USBankandtheirleaderswhoareheretodayhavetheabilitytorestorethelifelinetoSomalia,saidIbrahimNur,anactivistwhoworkswiththelocalSomalicommunity.Whilemembersoftheirstaffhavemetwithus,westilldonothaveasolution.Eachdaythatthiscrisiscontinues,moreandmoreofourfamiliessuffer.

MoniqueWhite,aNorthMinneapolishomeownerandsinglemotherwhofacesforeclosureeventhoughsheworkstwojobs,hasbecomeacatalystfortheOccupyHomesmovement,inMinneapolisandnationwide.Duringashareholderquestionandanswersession,WhiteaskedDavisforUSBanktorenegotiatehermortgage,whichiscurrentlyinthehandsofthelendingcompanyFreddieMac.Davisreportedlygaveheracurtresponse,butofferedtomeetwithWhiteaftertheshareholdersmeeting.Hedidso,andreportedlyofferedtohavehisVicePresidentlookfurtherintohercase.[Seephotobelow:

InterviewwithMoniqueWhitetocomelatertonight.]

WhileRichardDavisaddressedUSBankshareholdersandactivistsposedasshareholdersapproximately200demonstratorsmarchedfromtheConventionCenter,downNicoletMall,toWellsFargosheadquarters,wheretheyheldaspiritedrally,postedabillfor$21.6billionWellsFargoowesthe99%,andaskedthebanktopayitsfairshareintaxes.LeadingthemonthemarchthroughdowntownMinneapoliswerecaricaturesofRichardDavisandWellsFargoVicePresidentJonCampbell,ridingonahorse-drawncarriageandtauntingpedestriansonthestreetforpayingmoreintaxesthantheydo.

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CTULPressConference April25,2012

We,theworkerswhocleandifferentstoreslikeKmart,Sears,BestBuy,Target,andothers,contributetotheprestigeofthesestoresthroughourworkButwhathappenswithus,theworkerswhocarryoutthecleaningwork?ThestorescontractdifferentcompanieslikeDiversifiedandCarlsonamongothers,whothen

overworkandunderpaythecleaningworkers.

AlejandroQuirino,DiversifiedMaintenanceworkerStarTribune|Janitors:ContractorDidntPlaybyRulesWorkdayMinnesota|Study,LawsuitExposeExploitationFacedbyRetailCleaningWorkers

Janitors:ContractorDidntPlaybyRules

Cleanersatbig-boxstoresfilealawsuit,sayingtheirbossdidn'tpayovertime.

DeeDePass|StarTribune|April26,2012

Agrouprepresentingjanitorshiredtocleanbig-boxretailstoresintheTwinCitiesreleasedareportWednesdayallegingindustrywideabusesbytheiremployer,DiversifiedMaintenanceSystems,forfailingtopaymandatoryovertimeandthreatsoffiring.

Thenationalreport,commissionedbyCentrodeTrabajadoresUnidosenLucha(CenterforWorkersUnitedinStruggle)andtheServiceEmployeesInternationalUnion,wasunveiledonNicolletAvenuein

MinneapolisinfrontofaKmartstore.OtherretailersthatcontractwithDiversifiedMaintenanceincludeTargetandBestBuy.

StephenPhilion,St.CloudStateUniversity'sdirectoroftheFacultyResearchGrouponImmigrantWorkersinMinnesota,readpartsofthereport,whichdetailedU.S.DepartmentofLaborinvestigationsspanning10years.Italsooutlinedlawsuitsagainstcommercialcleaningfirmsthatspecializedinretailstores.

Philioncitedcasesinwhichpaychecksbounced,whereLatinojanitorswereforcedtopaymanagersa"deposit"togethiredandwhereworkersweren'tpaidovertime.

InOctober,12TwinCitiesjanitorssuedTampa-basedDiversifiedMaintenanceinU.S.DistrictCourtinMinneapolisfor

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allegedlyfailingtopayqualifyingworkersovertime,aclaimthecompanydenied.

"Wedonotagreewiththoseallegationsandwehaveevidencetothecontrary,"saidDiversifiedattorneyPhillipRussellfromthelawfirmofOgletreeDeakinsinTampa."Wearevehementlydenyingtheircaseandwewilldosoincourt."Russelltookissuewiththeplaintiffsandtheirattorneyholdingapress

conference."It'sdisappointing.It'snotaveryprofessionalwaytolitigateacase,"Russellsaid.

PlaintiffsattorneyMichaelHealytoldthecrowdofabout40thattwomoreplaintiffsjoinedthesuit,whichheseekstogetcertifiedasaclassaction.

AlongwithHealy,10DMSjanitorscameWednesdaytosharetheirstories.Flankedbyunionmembers,attorneysandimmigrantadvocates,thejanitorssaidtheywerehiredbyDMStocleanTarget,BestBuyorKmartstoresaroundtheTwinCities.Theyallegedbeingmadetoworksevendaysaweekwithnoovertimepay.

RoyceReder,whospentfiveyearscleaningthesameKmartstorewherehestood,saidaDMSmanager

recentlytoldhimhehadtoworkfour-hourshiftsforsevendaysaweekinsteadofhisusualfive-day,40-hourshift.Ifherefuses,"Iwilllosemyjob,"saidReder,whohasnotjoinedthelawsuit.

LeticiaBaeza,whojoinedthesuitinOctober,saidshewasmadetoworkseven-dayweekswithoutovertime.Sheestimatessheisdue$26,000.

DeeDePass612-673-7725

Study,LawsuitExposeExploitationFacedbyRetailCleaningWorkersWorkdayMinnesota|April26,2012MINNEAPOLIS-TheworkerswhocleanmajorretailstoreslikeKmart,TargetandBestBuyoftenfaceshockingconditionsofexploitation,includingheavyworkloads,longhoursandlostwages,accordingtoanewstudyoftheindustryandalawsuitagainstamajorcleaningcontractor.TheinformationwasreleasedWednesdaybyCTUL,CentrodeTrabajadoresUnidosenLucha/theCenterforWorkersUnitedinStruggle,acommunityorganizationthatworksforfairwagesandbetterconditionsforretailcleaningworkers,manyofwhomarerecentimmigrants.Lastfall,workersemployedbyDiversifiedMaintenanceSystems,acleaningcontractorforretailstoresincludingKmart,Target,andBestBuy,filedsuit,chargingthatthecleaningcontractorrequiredthemtoworkupto80hoursaweekwithoutovertimepay.DiversifiedMaintenancehasbeenthesubjectofatleastsixprivatelawsuitsandaninvestigationbytheU.S.DepartmentofLaboroveritsfailuretopayovertimewages.Thelawsuitcanbedownloadedatthiswebsite.

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IworkedforDiversifiedforaboutthreeyears,sevendaysaweek,eighthoursaday,MariaCruz,oneoftheworkerswhobroughtthelawsuit,saidatWednesdaysnewsconference.IwastoldbymanagementthatIhadtopunchinfivedayswithmynameandemployeenumber.FortheothertwodaysIwastoldtopunchinwiththenameandnumberofaghostemployee.Iwasthenpaid

cashforthosedays,butIwasnotpaidattheovertimerate.Overthreeyears,thatsalotofmoney,

MembersofCTULspokeoutabouttheconditionsfacingretail-cleaningworkersatanewsconferenceWednesday.

Atthesamenewsconference,CTULreleasedareportindicatinglowwagesandotherproblemspervadetheretailjanitorialindustryinMinnesotaandthroughouttheUnitedStates.Thereport,DirtyBusiness:

WorkerExploitationintheRetailJanitorialIndustrycanbefoundattheCTULwebsite.ThereportshowsthatmanyofthecleaningcontractorshiredbyretailstoresinMinnesotaandthroughouttheUnitedStatesregularlyfailedtopayovertimetojanitorswhoworkwellinexcessof40hoursaweek."ThisstudyshedslightontherealityfacedbythousandsofretailcleaningworkersaroundthecountryaswellashereintheTwinCities,citingmultipleexamplesoffederallawsuitsandUnitedStatesDepartmentofLaborinvestigationsthathavehappenedintheindustryregardingunpaidovertimewages,alltaking

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placeoverthepastdecade.ItisshockingtolearnthatsuchconditionsexistintheshadowofstoreslikeKmartandSears,saidStephenPhillon,associateprofessorofsociologyatSt.CloudStateUniversity,whoreviewedthefindings.AsasociologistwhostudiesthesocialconditionsofimmigrantlaborinMinnesota,Phillioncontinued,

thiswhitepaperstandsoutasapowerfulonepreciselybecausemethodologicallyitpullstogetherrelevantdatafromrelevantgovernmentagencies,Minnesotaretailcleaningworkerswhohavedirectlyexperiencedtheconsequencesofintensifiedandout-of-controlnationalandglobalcompetition,andevenindustryofficialsthemselves."Accordingtothereport,departmentstoresandsupermarketscontractouttheirjanitorialworkseeminglytocutcostsandavoidresponsibility.Thereisfiercecompetitionamongthejanitorialcompaniesforthesecontracts,witheachcompanytryingtounderbidtheother.Sincelaborisbyfarthelargestandmostcostlyexpenseinacleaningcontract,thecompanywiththelowestlaborcoststendstowinthecontract.Insomecases,workersbelievethejanitorialcompaniestrytominimizetheirlaborcostswithpractices

suchasnotpayingovertimeorbyrequiringemployeestogetmoreworkdoneinashorterperiodoftime.Iheldtwojobsbecauseofthelowwages.Weworkinaplacefilledwithfoodandyetwecanbarelyfeedourfamilies,saidMarioCollolyTorres,whousedtocleanasupermarketandnowworkswithCTUL."Theylookforacleaningcompanythatisgoingtogivethelowestpriceforthework.Theresultforus:lowerwagesandincreasedworkloads.Thereportarguesthatcontractorscountonthepredominantlyimmigrantworkforcenotbeingawareoftheirrightsorbeingafraidofretaliationiftheycomplain.Inonecase,aPhiladelphiacleaningcompanyevenwentsofarastoenslavetheirworkersandtothreatentheworkersandtheirfamilieswithphysicalviolenceiftheytrytoescape.

Thereportwillbedistributedtoelectedofficialsandotherdecision-makers,CTULsaid.ThelawsuitagainstDiversifiedMaintenanceSystemsiscurrentlyinthediscoveryphase,attorneyMichaelHealeysaid,andmaygototrialinabout18months.

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ISAIAHPropheticVoicesConference April26,2012

FaithbasedorganizationsISAIAH,JewishCommunityActionandtheStairstepFoundationconvenedagatheringof250faithleadersfrom150congregationsinSt.PaulonThursday,April26tolaunchastatewidePropheticVoicesCampaign"thatwillengagecongregationsandclergyto"voteonvalues."Theeffortwill

unitecongregationsunderacommonafive-pointvaluesstatementtoaddressissuesincludingvotingrightsandracialdisparitiesineducation,healthcareandjobsduringandafterthestate's2012legislativeelections.ISAIAHwillalsoworkwith15congregationsinthewesternmetrosuburbsandSt.Cloudtocontact25,000eligiblevotersinavalues-basedcivicengagementeffort.StarTribune|MinnesotaFaithLeaderstoLaunchVoterEducationCampaign

MinnesotaFaithLeaderstoLaunchVoterEducationCampaign

RoseFrench|StarTribune|April25,2012

Some250faithleadersfrom150congregationsarelaunchingastatewidevotereducationcampaignthatwillteachpeoplehowtoviewpublicleaders,candidatesandpolicy.ThefaithgroupsISAIAH,JewishCommunityActionandHisWorksUnited/StairstepFoundationwillstartthePropheticVoicescampaignonThursdayataday-longconferenceheldattheCrownePlazaHotelinSt.Paul,accordingtoareleasedstatementfromISAIAH.

EverydayIseethepainoffamilieslosingtheirhomes,theirjobs,theirhealthcare,andtheirretirementsavings,andImoutragedbytheindifferenceshownbyourgovernmentandcorporateleaders,theRev.PaulSlack,presidentofISAIAHandpastorofNewCreationChurchinMinneapolis,saidinthestatement.

Thecampaignaimstoengagecongregationsandclergyunderacommonpropheticnarrative,afive-pointvaluesstatementthatcanbeagreeduponbymostfaithtraditions.

IssuessuchastheVoterIDballotinitiativeandracialdisparitiesineducation,healthcareandjobswillbelookedatthroughafaithperspective.ThePropheticVoicescampaignwilltakeplaceincitiesincludingAlexandria,Duluth,Minneapolis/St.Pauandtheirsuburbs,Northfield,Rochester,St.Cloud,St.Joseph,andWillmar.Congregationsfrom12denominationswillparticipateincludingtheEvangelicalLutheranChurchofAmerica(ELCA),ChurchofGodinChrist,Pentecostal,RomanCatholic,UnitedChurchofChrist(UCC),Presbyterian,UnitedMethodist,Baptist,Episcopal,UnitarianUniversalist,Mennonite,andJewishcongregations."