It seemed like business as usual at Cash Cow July 14. The phones were ringing. Customers and employees were interacting. Deals were being made. But Quick Cash, Inc., doing business as Cash Cow Loan Company, is being sued for reported unfair business practices for loans it made over the past four years, which could potentially include thousands of customers.

In a move to protect his assets, Cash Cow principal owner Tim Delgado filed for Chapter 11Bankruptcy protection July 6.

Meet the class action attorney

A law firm in Albuquerque, that specializes in suing companies for consumer fraud is targeting Cash Cow. Feferman and Warren handles a wide variety of individual and class action consumer cases throughout New Mexico as well as in Arizona. Their cases mainly consist of unfair practices in cash, vehicle and mobile home loans.

Richard Feferman won the 2014 Countryman award for legal services or special contributions to the practice of consumer law that have strengthened and affirmed the rights of low-income people in the United States.

“We’re just trying to get money for our clients.” he said.

He hopes businesses in this area reform their practices.

Milking the ‘Cash Cow’ or customers?

In the 16-page, class-action, lawsuit against Cash Cow, Feferman cites a number of alleged wrong-doings that he said violates both the Truth in Lending Act and the New Mexico Unfair Practices Act, including misstating the nature of the loan, the interest rate of the loan, the schedule of payments, and the security interest.

Caroline Tullie of Ganado, Ariz., is the plaintiff in the complaint filed in U.S. District Court May 23, 2014, which  states: “Cash Cow told Ms. Tullie she must refinance all three of Mr. Tullie’s outstanding loans into her own name, or Cash Cow would repossess her 2001 Dodge Ram.”

Tullie’s husband, Nelson Tullie, was the original loan holder, but he passed away in August 2013.

Delgado did not comment about the lawsuit saying it would violate Caroline Tullie’s right to privacy.

The class-action portion of the lawsuit is built around a $25 fee that Cash Cow previously charged for all loan applications. Adding the $25 to a contract of less than $2,500 will increase the Annual Percentage Rate by at least 1 percent.

It is anticipated that over 1,000 Cash Cow customers will be impacted by this lawsuit if it is successful. Any customer borrowing money or refinancing a loan within four years of the filing of the lawsuit would be included in the case.

The $25 fee is labeled an application fee. However, Cash Cow only charged the fee for approved loans. Therefore, it is a cost of the loan, and falls under the Truth In Lending Act explained Nicholas Mattison, an attorney for Feferman and Warren. The purpose of the TILA law is to provide a uniform set of disclosures so shoppers can compare the cost of one loan to another.

After the lawsuit was filed, Delgado filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Under Chapter 11, Delgado will be able to create a plan to pay all creditors over time. The bankruptcy lists debts in excess of $7 million including back taxes and personal loans.     The lawsuit also alleges that Cash Cow knew of the problems with their loan structure because of a previous lawsuit, Laughing v. Quick Cash (Cash Cow), filed against them. When asked if Cash Cow had changed their practices since that lawsuit, Delgado responded, “Mr. Feferman’s office has never sued us before.”

Mattress-Gate

The Laughing lawsuit was filed in McKinley County District Court by Mattison while he was employed by DNA People’s Legal Services in Window Rock January 2012.Feferman’s partner, Elizabeth Warren, also worked for DNA in Shiprock before joining the Albuquerque practice.

The Laughing lawsuit alleges Cash Cow, also known as, Quick Cash, sold Lula Laughing, a resident of Navajo, NM, a mattress on credit at a rate of 66.54 percent interest. The lawsuit states the loan was to be paid off in eight installments of $110 each.

The difference between the payment amounts and the original loan value is $184.44 which calculates to 27 percent interest. Delgado said an interest rate of 68 percent is not a part of his business practice but would not comment specifically on the Laughing case.

As security for the loan, Cash Cow reportedly took interest in Laughing’s 2000 Chevy Cavalier. It is alleged that the vehicle was repossessed when Laughing became delinquent on her payments. Reportedly, when she paid off her loan, the vehicle was never returned to her. This case was dismissed. Both parties referred to a confidentiality agreement, declining to reveal the reason for dismissal of the case.

Cash Cow’s attorney, Harry Kassakhian said “Quick Cash (Cash Cow) does not want to make any statement that would violate Ms. Laughing’s right to privacy. Quick Cash values the dignity and privacy of all of its present and former customers.”

Rebuttal

As to the Tullie case, Kassakhian said Cash Cow relied on a software program that did not accurately calculate the interest rate of the loans.

“Since Ms. Tullie filed the lawsuit, Quick Cash stopped charging the $25 loan fee,” he said.

“Anybody can file a lawsuit whether it has merit or not,” Kassakhian said.

No court decision has been made regarding the Tullie class action case.

Delgado chose not to answer questions about the lawsuit and the bankruptcy during a face to face interview. He cited a report by NBC, in which he was profiled, “Endless Debt: Native Americans Plagued by High-Interest Loans” as his reason for not trusting interviews. He believes NBC did not portray Cash Cow honestly in their report.

In his written response, Delgado said, “We will survive! Gallup is our home and we love this community. We opened Cash Cow with the intention to build a better life for us and those around us. A hundred percent of our customers are from Gallup and the surrounding area. We believe that they will support us through this lawsuit. We look forward to bigger and better things in the future.”

Delgado and partners employ about 50 people in the Gallup area at Cash Cow Furniture, Cash Cow Auto Sales, Cash Cow Tires and Baskin Robbins.

New restaurants, businesses to emerge

The northern corner of Interstate 40 and U.S. Route 491 have been bustling with activity. Four new businesses are under construction now and others are in the planning stages. Economic development has hit a new high in Gallup.

Gallup-McKinley County Chamber of Commerce Director David Hinkle says new business is essential to the creation of jobs. It also benefits the city’s bottom line by significantly increasing the tax base, which brings needed revenue into city coffers.

Nationally, Hinkle explained, an entrepreneurial climate is the number one necessity for economic development. The next most important is retention and expansion of local businesses. Recruitment follows next on the list. Here in Gallup, tourism and hospitality services play a larger role than in other parts of the country.

He said it is important to focus on raising the salaries and income of working people and business owners in an effort to raise the standard of living here. Any initiatives that will increase the number and quality of jobs will also increase the quality of living here in Gallup.

“Every (social) issue will be improved by better economic conditions for all citizens,” Hinkle said.

“We are moving the needle,” he added. “That’s why they are choosing to put their businesses here.”

By moving the needle, Hinkle is referring to the positive changes being made in Gallup. He says he sees small improvements in all areas: business, city and county government, the school system and the workforce.

Hinkle said Gallupians should think of economic development as more than just numbers. He described it as braces on a child’s teeth, curtains in the living room or a dependable vehicle in a driveway. He wants the community to see economic development as improvement to the quality of life for the people who live in this community.

Signs of the Times

Smokey’s Roadhouse will be moving into the former location of Furr’s Cafeteria. Of the bigger businesses headed for Gallup, Smokey’s is the only one that is entirely locally owned. Owners Greg McDargh and Willie Roy have visited barbecue houses in Colorado and Arizona specifically looking for the best ideas around the southwest.

“We’re trying to create for Gallup, something we have to go to a city for,” McDargh said.

One of the goals of the Roadhouse is to provide a place for younger people to have birthday and graduation parties and other events. Their 50 seat banquet room will help accomplish this goal.

On the northwest corner of the building, they plan to build a 20-foot fireplace with picnic tables and seating. On the north side of that area will be a horse shoe pit, and just to the west of the horseshoe pit will be an outdoor cornhole game area. Along with their activities, Smokey’s plans to host live bands and outdoor concerts.

Though the restaurant will serve beer and wine, it will be a family friendly atmosphere. On the menu will be charbroiled and smoked meats along with corn on the cob, coleslaw and baked macaroni and cheese. McDargh says they are creating some surprises to add to the menu.

Roy said they looked at the Alpine Lumber property for the restaurant with the idea of having outdoor concerts. But the Furr’s property became available and he says he thinks it is the best location in town. Smokey’s hopes to add at least 50 jobs to the local economy.

Rio West Mall Manager Ida Mangum gave an update on recent changes at the mall. Rick’s Cyber Lounge recently expanded, adding room for more computers. The increased space will allow more gamers to take part in tournaments.

Serenade Music opened at the north end of the mall. They carry instruments, parts, and sheet music. They also rent instruments. This service is especially beneficial to band students in this area.

De Shelly Tech opened a small repair shop specializing in computer and gaming console repairs. They also do website design and graphic artistry.

Go Girl Bling will be located in a kiosk and will specialize in purses, belts and other items decorated with a variety of bling.

Freddy’s Frozen Custard and Steak Burgers will be breaking ground on the east side of the mall near the old car wash. Freddy’s is a fast food restaurant with a drive through serving station.

UNM Gallup is adding adult learning classes in mall. They will be located in the area next to JC Penny’s.

Panda Express will take the place of the old car wash on the east side of Route 491,  just north of Munoz overpass. Construction is underway with a fence encircling dirt-moving equipment. The restaurant is expecting to hire between 15 and 25 employees said Aris Lim of Panda Express in Albuquerque. At this time they do not have a definite opening date planned.

WisePies Pizza & Salad will be housed in the American Heritage Plaza in the location where the La Fiesta Restaurant formerly occupied.  WisePies makes personal size gourmet pizzas in five minutes. WisePies is also the official sponsor of the UNM Lobo Basketball Arena now known as WisePies Arena. In a 2014 press release, owner Michael Baird said, “An important part of our expansion plan is to remain dedicated to reinvesting in our local economy while creating jobs for New Mexico.”

Springhill Suites by Marriott is under construction on Lincoln Avenue next to Lota Burger.

Springhill Suites has over 300 locations in the US and in Canada.

Based on Gallup Sun interviews, a minimum of 100 jobs are expected to be created with the opening of these new businesses.

Greg Ballenger is an 18-year-old artist who dreams of showing in a gallery in Santa Fe soon and New York City later. He is the guy seen on scaffolding painting black and white portraits of veterans in downtown Gallup.

So far, he has completed a mural for Sheila Silva on Second Street and one for Tom Hartsock in the downtown walkway.

Ballenger attended Rehoboth Christian School. He left Rehoboth after his sophomore year for Idyllwild Arts Academy in California. Idyllwild is a boarding school for aspiring artists. By completing his studies there he received a high school diploma and an art certificate.

One of the requirements to receive the art certificate was completion of a senior show. He searched for a subject, but had trouble making a decision. He takes an introspective approach to life.

He explained to his mother, Virginia Ballenger, that finding a subject to express his artistic creativity was difficult. She told him, if you have trouble doing it for yourself, then do it for someone else. She suggested he use subjects from Gallup and focus on something that would showcase his culture. He was one of only three Native students on the campus, so this seemed like a good idea.

While growing up, Ballenger had wanted to join the Marines. But art ended up being his choice of a vocation. He combined his two passions and chose veterans as the subject of his senior show. The project included several months of work on the art, hanging the show, hosting an opening, taking down the show and receiving a critique.

Ballenger’s father, Carl, showed the senior project to local artist Fitz Sargent. Sargent encouraged the younger Ballenger to present his work to Mayor Jackie McKinney.

McKinney saw the mural Ballenger painted on the wall of Sargent’s home across from Camille’s on Second Street and thought it was well done. Since the theme fit in with the “Most Patriotic Small Town in America” designation Gallup received during a Rand McNally Best of the Road contest in 2013.

“It’s just amazing. It goes hand-in-hand with the quality of artists in our area,” he said.

The mayor dedicated $5,000 from his discretionary fund account, allocated to him from the city to commission the project.

The mayor also said that he is happy to recognize young talent and is excited about leaving a lasting memorial to local veterans.

Sargent gave further encouragement by showing Ballenger how to prep the wall and get the right composition for the piece.

“What sets him apart is he is really serious,” Sargent said. “And he’s good. He’s just natural good, a perfectionist.”

Ballenger said he is having a lot of fun with the project. But it is hard work. It takes him almost an hour to set up his scaffolding when he works alone. Sometimes a friend will come help him set up. A lot of people stop to watch him work.

A guy named “Taco” hangs around downtown and seems to show up when Ballenger needs an inspiring boost.

“He’s really been an encouragement to me,” he said.

The first portrait completed features Sgt. Sheila Silva, U.S. Marine Corps. Silva served from 1985-1992 and was stationed in Saudi Arabia for both Operation Desert Shield and Operation Desert Storm.

“My daughters love it,” she said. “They think it’s cool.”

Her father is also a veteran and he is also proud of the portrait.

But Silva has mixed feelings about it. While she thinks it’s a great idea, she doesn’t like to be in the “limelight.”

There will be a quote painted close to each portrait.  Hartsock’s quote will read: “Love, Honor, and Duty to America! Thirty months in Vietnam was a small price to pay for the privilege of being born in the U.S.A.” He served in the US Army from 1967-1971with the 509^th Radio Research Company.

Members of Veterans Helping Veterans is suggesting the subjects for the murals. “It’s hard to pick who goes on the wall. You can only do so many,” volunteer David Cuellar said.

Ballenger hopes to complete four more portraits before Aug. 7, which is the date for next month’s Arts Crawl event.

In addition to painting, Ballenger is interested in all artistic mediums including jewelry making, photography, sculpture and printmaking. His motto is “Work Until Your Idols Become Your Rivals”. He will be attending the Institute of American Indian Arts in Santa Fe this fall working toward a Bachelor of Fine Arts degree.

He hopes travel and live in Europe and South America so he can experience different cultures and the art of other countries.

A Ground-Breaking Ceremony was held in Gallup June 23 for the new Allison Road interchange project. Community leaders, business owners and concerned citizens were on hand to hear Gov. Susanna Martinez praise the legislature for working as a bi-partisan unit to pass the Capital Outlay Bill that awarded $4.5 million in state funding toward this project.

Attendees heard Martinez, Mayor Jackie McKinney, and Cabinet Secretary of the New Mexico Department of Transportation Tom Church celebrate the successful allocation of $4.5 million in state funding for the project.

“This creates a road to the future,” said Mayor Jackie McKinney. He praised Martinez’s commitment and integrity for following through with her support of the project. He also thanked the DOT for the Highway 491 four lane improvement project that will allow even more heavy traffic to flow from the north and through Gallup.

Church said the improvements were not possible without the governor or local leadership.

“These two projects will produce long-term safety and traffic relief to the citizens of Gallup as well as make travel across the freeway move more freely,” he said.

Martinez said she believes people will see Gallup as an organized city with possibilities for successful business ventures.

“Capital outlay is about building it, completing it, making sure the money is there,” she said. “Road congestion slows down commerce.”

In her speech, the governor said the capital outlay funding for New Mexico is healthy. It has grown from nothing to almost $50 million under Martinez’s leadership. The investments being made to infrastructure is helping New Mexico become more competitive in the economic world of industry recruitment.

Martinez’s philosophy regarding capital outlay is that it is meant for big projects. It lays the foundation for long-term, sustainable growth. But funds have to be leveraged responsibly.

She explained that in the past capital outlay has been appropriated for many projects that were not shovel ready. As a result, the projects were never completed, wasting tax payer dollars.

With capital outlay from the state, even small communities can leverage federal funds in an effort to complete big projects.

Martinez used San Juan County, Rio Rancho and Albuquerque as good examples municipalities that have collaborated with other agencies to leverage their funds and use them to leverage federal dollars.

She also announced a $100,000 grant appropriated to the El Morro Theatre from the Local Economic Development Act. It is the governor’s hope that by investing in historic venues, businesses will be persuaded to open in the downtown areas across New Mexico.

“We want to revitalize our historic downtowns,” she said.

During a regular City Council meeting, also held June 23, Public Works Director Stan Henderson updated the council and mayor on the next steps for the Allison Road project.

He said that he hopes to draft the funding in August and take it to construction in October.

There are many steps remaining to launch this project off the ground including certifying utilities, final project environmental plans, a 404 permit with the Army Corp. of Engineers and a final PS&E (plans, specifications and engineering) report.

With better access to the west side of Gallup, city leaders project the area will be more developed and property values will rise.

During the groundbreaking ceremony, Mayor McKinney said half jokingly that he hopes to see a Harley Davidson dealership crop up on that side of town as part of the expected growth in the Allison Road corridor.