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Robert L. Johnson Urges Job Creation and Better Lending Practices for Minorities
June 11th, 2011
The RLJ Companies seeks to target undiscovered or underserved markets
Addressing the Congressional Black Associates, Robert L. Johnson, founder and chairman of The RLJ Companies, called for a national dialogue from members of Congress to address the need for better and improved financial services options for low-to-moderate income Americans who rely heavily on payday lenders for financial transactions. Johnson also called for a new commitment to providing opportunities for minority employees and minority businesses through OppsPlace.com, the preeminent website for corporations looking to attract minority job seekers and minority businesses using the accessibility of the Internet.
Payday lending is never the best option
Johnson said, “We all know that payday lending is never the best option but often it is the quickest and most accessible type of loan option available for individuals in need of financial assistance and on a short notice. Such loans often include fees and interest rates that rival credit cards and are never the best choice for long-term financial needs. It is for these reasons that I urge Congress to increase the national focus on payday lending and predatory lending practices that impact low-to-moderate income families, particularly African Americans.”
60 million American adults are “underbanked”
Johnson cited the recent study by the FDIC, saying that nearly 60 million American adults are “underbanked,” meaning they do not have a bank account or use alternative financial services. Over half of African American households are underbanked and African Americans are six times less likely than white Americans to have a bank account. Millions of working Americans rely on payday loans to cover unexpected bills, make repairs to their cars, or to pay for urgent medical expenses.
The financial system
“Our financial system has not worked for an entire class of hard working Americans and recent regulatory changes may make financial institutions even more reluctant to serve this growing population. Individuals with low-to-moderate income, who live from paycheck-to-paycheck, have lost access to financial products that help them establish or re-establish themselves financially and I am looking to address alternatives to payday lending as we know it today.”
Huge obstacles
In addition to the challenges within the financial services system, minority Americans also face obstacles when trying to identify employment opportunities and become business vendors and suppliers in corporate America. In response, Johnson in collaboration with Virginia-based firm, Symplicity, has created OppsPlace.com.
Solving social problems
“I am personally committed to finding business solutions to solve social problems such as the high rate of minority unemployment and limited minority business opportunities. OppsPlace.com will help address this problem and will help corporations fulfill their diversity objectives, while meeting the workforce needs and supplier participation goals of their business,” he says. “Having grown up in a working class household I understand this problem, this is an issue I am passionate about. All Americans deserve access to financial services that work for them, not against them, as well as have the right to compete for jobs in our country. I have made these issues a priority,” he concluded.
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