National Consumers League calls on Congress, DOT to investigate flight cancellation crisis

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August 6, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League (NCL) is today calling on Congress and the U.S. Department of Transportation to take action to address the dramatic increase in flight cancellations that American consumers have been forced to endure this summer. In just the last 48 hours, Spirit Airlines canceled more than 400 flights, nearly 60 percent of its schedule, and American Airlines canceled nearly 350 flights. This follows on the heels of delays for nearly 10,000 flights and hundreds of additional cancellations in June.

NCL is urging Congress and the DOT to address this unacceptable situation and hold the airlines accountable for skirting around the requirements of agreements to accept more than $50 billion in tax-payer funded bailouts in 2020.

The following statement is attributable to NCL Vice President of Public Policy, Telecommunications, and Fraud John Breyault:

“The situation in America’s airports has reached a crisis point. The airlines gladly accepted tens of billions of dollars in bailout money last year in order to save jobs. Nonetheless, they are now blaming thousands of cancellations and delays on not having enough workers.

“Who do they think they are kidding? The airlines are playing fast and loose with consumers, and it must stop. This scandal is stranding millions of Americans at the height of the summer travel season. Secretary Buttigieg and leaders in Congress should immediately take action to hold the airlines accountable for their failure to maintain adequate staffing. Airlines that cannot accommodate their passengers should immediately issue refunds with no questions asked. Interline agreements should be required so that passengers can be easily booked onto alternate airlines to complete their journeys. Congress should immediately open an investigation into whether the airlines’ use of early retirement packages and unpaid furloughs, combined with the threat of layoffs, constituted an illegal evasion of the bailout legislation’s staffing requirements.”

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL to Congress: Strengthen fraud protections for users of P2P payment apps

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August 3, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—With fraud linked to the COVID-19 pandemic at record levels, the National Consumers League (NCL) today cited the use of peer-to-peer (P2P) payment apps by scammers as a significant contributor to the problem. In testimony before the Senate’s Financial Institutions and Consumer Protection Subcommittee, NCL Vice President John Breyault urged Congress to extend key consumer fraud protections to cover victims of scams who are tricked into sending money via P2P apps.

According to a 2020 Nerdwallet survey, roughly 4 in 5 Americans (79 percent) have used mobile payment apps. The explosive growth of P2P apps has accelerated significantly during the pandemic. Research firm Insider Intelligence estimated that the transaction volume for P2P payments will increase by roughly 37% in 2021, with total annual transaction volume over P2P apps expected to surpass $1 trillion by 2023.

“The same factors that are fueling the rapid growth of P2P payment platforms during the pandemic – low-cost, nearly instantaneous payments made via a mobile app – have made P2P a payment method of choice for scammers,” said Breyault. “If these platforms are making the decision to skew their services towards speed and convenience at the expense of safety and protection, then they must take responsibility for those choices.”

In 2020, the Federal Trade Commission received nearly 62,000 complaints from consumers who sent money to fraudsters via payment apps or similar services. Agencies such as the Consumer Financial Protection Bureau and organizations like the Better Business Bureau have seen similar complaint spikes. Data from security firms Sift and Chargeback suggest that fraud rates on P2P apps may be three to four times higher than on credit or debit cards.

To address this fraud, NCL called on Congress to enact legislation that extends the fraud protections debit and credit card users rely on to users of P2P payment apps. In addition, NCL urged Congress to pass new laws to strengthen consumer protections, including requiring P2P platforms to display information about scams targeting P2P apps and maintain toll-free customer support lines.

“The lack of consumer protections for users of P2P payment platforms must not be ignored,” said Breyault. “It is clear that absent regulatory incentives, effective self-regulation by the P2P services will be stymied in the name of protecting transaction volume growth. Congress must act.”

To read NCL’s testimony , click here.

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Leading consumer groups call on FTC and CFPB to update study on accuracy of consumer data

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July 23, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 and Linda Sherry, (202) 544-3088, linda.sherry@consumer-action.org

Washington, DC—Leading consumer groups are calling on the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) to update a key 2012 study on the accuracy of consumer data at the credit bureaus in a letter sent to both agencies.

The National Consumers League and Consumer Action, two leading consumer advocacy organizations working to promote pro-consumer policies on the federal level, noted in their letter to FTC Chairwoman Khan and Acting CFPB Dirctor Ueijo that policy leaders in Congress and the White House had been citing the 2012 study in recent hearings and events and they were concerned that the data policymakers were using was almost 10 years old.

“Much has happened since 2012 that impacts the accuracy of consumer data, starting with the rise of technology, increased data breaches by bad actors, the NCAP settlement and of course a pandemic and economic crisis. It is critical that we re- examine the accuracy of the credit bureau data in light of these developments…” the Consumer Action and National Consumers League letter reads. “…We worry about the unintended consequences if policymakers fashion new laws based on old facts.”

A full copy of the letter can be found here.

About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

National Consumers League applauds House repeal of national banking regulator’s Predatory Lending Rule; Urging Congress to act soon on interest rate cap

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June 29, 2021

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242

Washington, DC—The National Consumers League (NCL) applauds the House for voting for the Congressional Review Act resolution to overturn the OCC’s “fake lender” rule, which allowed predatory lenders to evade state interest rate laws by putting a bank’s name on the paperwork. In a 218-208 bipartisan vote, The U.S. House of Representatives voted to approve SJ Res 15, a resolution under the Congressional Review Act (CRA), which was introduced by Senators Chris Van Hollen (D-MD) and Sherrod Brown (D-OH). A companion resolution was introduced by Rep. “Chuy” García (D-IL). Now that both chambers of Congress have approved this resolution, we look forward to President Biden signing the bill into law.

“We applaud the House’s bipartisan vote to repeal this harmful rule which facilitates rent-a-bank schemes,” said NCL’s Public Policy Manager Sarah Robinson. “This is an important step in preventing predatory lenders from targeting vulnerable communities. We urge President Biden to quickly sign this bill into law to protect consumers.”

NCL was part of a broad coalition of more than 400 organizations representing all 50 states and the District of Columbia calling on Congress to overturn the “fake lender” rule, which threatens to “unleash predatory lending in all fifty states.”

The rushed “fake lender” rule took effect in December and was issued by the Office of the Comptroller of the Currency (OCC). The rule protected “rent-a-bank” schemes whereby predatory lenders (the true lender) launder their loans through a few rogue banks (the fake lender), which are exempt from state interest rate caps. The rule had overridden 200 years’ worth of case law allowing courts to see through usury law evasions to the truth, and replaced it with *a pro-evasion rule that looked only at the fine print on the loan agreement.

A broad, bipartisan cross-section of experts and officials have called on Congress to repeal the fake lender rule. They include a bipartisan group of 25 state attorneys general, concerned the rule would effectively gut their state usury laws. The Conference of State Bank Supervisors, National Association of Consumer Credit Administrators, National Association of Federally-Insured Credit Unions, Credit Union National Association, Military Officers Association of America, Faith for Just Lending, and many other groups also support Congress overturning the rule.

According to national polling, two-thirds of voters (66%) are concerned about the ability of high-cost lenders to arrange loans through banks at rates higher than the state laws allow.

This victory will stop predatory lenders from charging 100% to 200% APR and make all lenders adhere to state laws.

NCL now urges the Congress to take up the Veterans and Consumers Fair Credit Actand cap interest rates nationally on all consumer loans, including payday and car title loans. It is crucial that the Congress take up this bill that was introduced by *Rep. Garcíaand Rep. Glenn Grothman in the last Congress. This is a critical piece of legislation that will protect all consumers from predatory lending. We look forward to working with Congress and our state delegation to pass this important piece of legislation.

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Finally, Juneteenth is declared federal holiday

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By Sally Greenberg, NCL Executive Director

Juneteenth, or June 19, is now a federal holiday, thanks to an overwhelming Congressional vote and President Biden’s signing it into law in the past two weeks. And it’s a long time coming. The day marks the emancipation of the last enslaved people in America in Galveston, Texas in 1865, over two years after the Emancipation Proclamation was signed by President Abraham Lincoln.

I’ve heard Juneteenth called Emancipation Day, Freedom Day, and the country’s second Independence Day. It surely is one of the most important anniversaries in our nation’s history.

As a Jew who has observed Passover my whole life, the holiday based on the Book of Exodus celebrating the liberation of Jews from Egypt after 400 years of enslavement, I also celebrate Juneteenth.

As I listened to the radio during a road trip, I heard stories about the newly declared federal holiday. I think most importantly, it’s gotten people talking about a conversation America has never really had: truth and reconciliation about the despicable institution of slavery in the United States and its vestiges: a century and a half of Jim Crow segregation, violence, and rampant, entrenched discrimination against African Americans.

Sadly, this is a conversation too many Americans don’t want to have. Oklahoma passed a law outlawing the teaching of “Critical Race Theory” in state schools. In 2020, President Donald Trump issued an executive order excluding from federal contracts any diversity and inclusion training interpreted as containing “Divisive Concepts,” “Race or Sex Stereotyping,” and “Race or Sex Scapegoating.”

What even is Critical Race Theory? The textbook definition is that CRT acknowledges that the legacy of slavery, segregation, and the imposition of second-class citizenship on Black Americans and other people of color continue to permeate the social fabric of this nation.

Half a dozen other states are considering bills similar to Oklahoma’s. Fox News and other right wing media outlets have tried to use phony scare tactics to discourage discussion of slavery and its generations-long aftermath. The problem is that unless we have those discussions, we will never reckon with the reality that so much of our nation was built on the backs of enslaved people, including the White House. Refusing to discuss this our history of enslavement has a term too: “White Fragility,” defined as white Americans feeling discomfort and defensiveness when confronted with information about racial inequality and injustice. So despite Oklahoma’s law, Biden’s declaring Juneteenth as a federal holiday got people talking—and that’s a good thing.

I liked hearing about Civil Rights Activist Opal Lee, who long advocated for the celebration that started in Galveston to be made a federal holiday.

It was also interesting to learn that there’s a growing discontent within the African American community with symbolic gestures like declaring a federal holiday marking the end of slavery.

On that theme, NCL has endorsed HR 40, a U.S. House bill to set up a commission to study the history of enslavement and reparations to families whose relatives were enslaved. Consider these facts about the legacy of slavery:

We thank President Biden for recognizing that Juneteenth needs to be a federal holiday and was long overdue. Equally important is HR 40, which will provide a way forward for this country akin to the Truth and Reconciliation Commission body established by the South Africa in 1995 to help heal the country and bring about a reconciliation of its people by uncovering the truth in the aftermath of Apartheid.

Slavery is a legacy that all Americans, no matter your racial or ethnic background or when your family arrived in the United States, need to confront. We must not let anger, fragility, backlash, or denial prevent us as Americans from taking the time to really learn about and understand slavery, the Jim Crow laws that followed it, and practices, including lynching, that were used as a tool of terror and white supremacy, and the many lasting repercussions of that terrible history.

The boom in e-commerce has been a boon for fraudsters

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The COVID-19 pandemic has greatly accelerated the growth of e-commerce…

Read more

A step forward on privacy legislation

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By Sarah Robinson, Public Policy Manager

Earlier this month, NCL joined other consumer advocates and industry stakeholders in an event to highlight our consensus that Congress must act to create strong federal consumer privacy rights urgently. We joined colleagues at the 21st Century Privacy Coalition, the Business Software Alliance, and Common Sense Media in calling on Congress to commit to passing comprehensive privacy legislation by the end of the 117th Congress. In a virtual press conference, the groups, along with Rep. Jan Schakowsky (D-IL), Rep. Gus Bilirakis (R-FL), and Sen. Richard Blumenthal (D-CT) agreed that Congressional action to strengthen consumers’ privacy rights is long overdue.   

The Washington Post Editorial Board highlighted our event stating, “the surprising degree of consensus around not only the general necessity of nationwide data protections but also the particulars” makes taking action a “no-brainer.” A *recent poll from Morning Consult revealed 80 percent of both Democrats and Republicans said Congress should make privacy a “top” or “important” priority in 2021.

There is bipartisan consensus and agreement from organizations across the spectrum that Congress must act. NCL’s message at the event is that it is now time to craft legislation that gives consumers back control over their personal data. At the event, Rep. Schakowsky, the chairwoman of the House Subcommittee on Consumer Protection and Commerce, announced her intention to hold a series of bipartisan roundtable discussions to examine ways to pass comprehensive privacy legislation. NCL is ready and eager to participate in those conversations to help ensure that a comprehensive bill gives all consumers strong, enforceable privacy rights.  

While passing legislation this Congress is a priority, NCL made clear that we are not going to simply bargain away long held principles on data privacy. NCL believes that in order to protect the privacy and security of consumers’ personal data, the legislation must not preempt stronger state laws, must include strong enforcement provisions, including a private right of action and provide consumers with strong substantive privacy rights. The right legislation will include effective enforcement mechanisms that safeguard privacy rights for consumers and enshrine rules of the road for businesses.  

We applaud Reps. Schakowsky and Bilirakis, and Sen. Blumenthal for their leadership and their commitment to continue fighting for comprehensive privacy legislation. We hope to continue to cooperate with this esteemed group as we work to achieve our shared goal. 

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings

NCL joins advocates in applauding Senate for repealing the national banking regulator’s predatory lending rule, urging the House to act soon

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Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL) applauds the Senate for voting to overturn the OCC’s “fake lender” rule, which allows predatory lenders to evade state interest rate laws by putting a bank’s name on the paperwork. In a 52 – 47 bipartisan vote this week, the U.S. Senate voted to approve S.J. Res. 15, a resolution under the Congressional Review Act (CRA), which was introduced by Senators Chris Van Hollen (D-MD) and Sherrod Brown (D-OH). Rep. “Chuy” García introduced a parallel resolution, H.J. Res. 35, in the U.S. House of Representatives. Now that the Senate has approved the resolution, the House needs to take swift action to stop the ongoing harm.

“We applaud this bipartisan rejection of rent-a-bank schemes,” said Sarah Robinson, NCL’s Public Policy Manager. “As consumers and small businesses look to rebuild from the devastation of the coronavirus pandemic, they must be protected from predatory lending. We now urge the House to move with urgency to prevent this rule from continuing to do harm.”

NCL was part of a broad coalition of more than 375 organizations representing all 50 states and the District of Columbia calling on Congress to overturn the “fake lender” rule, which threatens to harm consumers nationwide.

The rushed “fake lender” rule took effect in December and was issued by the Office of the Comptroller of the Currency (OCC). The rule protects “rent-a-bank” schemes whereby predatory lenders (the true lender) launder their loans through a few rogue banks (the fake lender), which are exempt from state interest rate caps. The rule overrides 200 years’ worth of case law allowing courts to see through usury law evasions to the truth and replaces it with *a pro-evasion rule that looks only at the fine print on the loan agreement. Predatory lenders charging 100 percent to 200 percent APR are already starting to push high-cost installment loans across the country that exceed the rates permitted under states’ laws.

A broad, bipartisan cross-section of experts and officials have called on Congress to repeal the fake lender rule. They include a bipartisan group of 25 state attorneys general, concerned the rule would effectively gut their state usury laws. The Conference of State Bank Supervisors, National Association of Consumer Credit Administrators, National Association of Federally-Insured Credit Unions, and many other groups also support Congress overturning the rule.

According to national polling, two-thirds of voters (66 percent) are concerned about the ability of high-cost lenders to arrange loans through banks at rates higher than the state laws allowed.

*Links are no longer active as the original sources have removed the content, sometimes due to federal website changes or restructurings

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL supports Peloton treadmill recall

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Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL) supports Peloton Interactive Inc’s decision to recall its Tread+ treadmill.

“The company has finally come to its senses and agreed to recall its treadmill, which has been caused deadly injuries to children,” said NCL Executive Director Sally Greenberg. “Use of Peloton’s Tread+ exercise machines resulted in at least 72 reports of injuries, including the death of a 6-year-old boy.”

There were also 29 reports of children suffering broken bones, cuts, and abrasions. The agency that regulates these products, the Consumer Product Safety Commission (CPSC), took the unusual step of issuing an administrative subpoena in April when the company refused to provide information about the fatal injury to a child.

“It’s critically important that the company work with the CPSC to recall 125,000 treadmills, at no cost to customers, and safely replace or repair the treadmills so they no longer pose a threat to children or pets,” Greenberg said.

The recall agreement was accepted Wednesday morning in a vote by the Commission. The agreement requires Peloton to halt sales of the Tread+ machine and fully refund consumers who wish to return their equipment.

Greenberg also pointed out how problematic CPSC’s rules are for launching a recall like this one and called on Congress to amend its statute. “We agree with Acting Chair Robert Adler’s assessment that the CPSC faces nearly insurmountable hurdles in protecting the public because, under its statute, the Commission is required to negotiate at length with companies before it is allowed to issue any safety warnings. No other federal safety agency is under such restrictions. That needs to change for the safety of the public.”

To read our previous statement concerning the Peloton Tread+ recall controversy, click here.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

National consumer organization throwing support behind three major labor rights bills in Congress

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Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, founded in 1899 to advance the needs of consumers and workers, is backing three important federal bills aiming to even the playing field between workers and employers. The three pieces of legislation—the Protecting the Right to Organize Act (PRO Act), the Farm Workforce Modernization Act (FWMA), and the Public Service Freedom to Negotiate Act—would strengthen labor laws and give workers greater opportunities to organize and form unions, protecting the most vulnerable in our labor force.

“Decades of industry lobbying have made it increasingly difficult for workers to organize,” said NCL Executive Director Sally Greenberg. “Employers enjoy unprecedented and unfair advantages during union organizing drives, which has led to far fewer opportunities for workers to make their voices heard in the workplace. NCL is pleased to support several legislative initiatives that would help right the course for America’s workers.”

According to a recent Gallup Poll, roughly two-thirds of Americans approve of unions—a number trending upwards up from about half in 2009.

“Consumers are recognizing that they are harmed when workers do not have a strong voice,” said Greenberg. “Industry abuses are more likely to go unchecked, resulting in unsafe and dangerous products making it to the marketplace. And when workers are fairly compensated on the job, they can afford to buy the products they create, stimulating further demand that benefits the economy.”

About the bills

The Protecting the Right to Organize Act (PRO Act) would enhance collective bargaining rights, impose penalties on employers if they retaliate against workers who are trying to organize, and update labor laws to protect workers. The bill passed in the House of Representatives with bipartisan support this spring on a 225-206 vote. The bill currently awaits action in the Senate. Of 50 Democratic and independent Senators, 45 are currently committed to supporting the bill. If the Senate passes the bill, President Biden has pledged to sign it.

NCL strongly supports the PRO ACT and urges the Senate to swiftly pass this important measure.

The Farm Workforce Modernization Act (FWMA) passed the House October 30, 2019, and was the product of bipartisan negotiations between leading Democrats and Republicans to modernize laws and treat with dignity and fairness our 2.4 million farmworkers, half of whom are undocumented immigrants. On March 18, 2021, the Farm Workforce Modernization Act, H.R. 1603, passed the House again by a bipartisan vote of 247-174, with 30 Republicans joining Democrats in support. H.R. 1603, like the earlier version of the legislation.

“America’s farms and food systems depend on immigrants who pick our crops. But because so many don’t have legal status, they live in fear of deportation and cannot challenge illegal or unfair treatment in their jobs or in their communities,” said Greenberg. “FWMA provides a path to lawful permanent residency for these workers. Under the bill’s provisions, farmworkers would be able to improve their wages and working conditions and seek enforcement when their rights are violated. It also makes America more food-secure by ensuring that farmers have workers to harvest their perishable crops.”

The FMWA is a pro-consumer, pro-worker, and pro-agriculture bill that NCL strongly supports. NCL urges the Senate to pass this legislation and send it to President Biden’s desk for his signature.

The Public Service Freedom to Negotiate Act (PSFNA, HR 3463 and S 1970), would set a minimum nationwide standard of collective bargaining rights that all states would have to provide to state and local workers.

There are nearly 17.3 million public sector workers across the country. Unlike private-sector workers, there is no federal law protecting the freedom of public sector workers to join a union and collectively bargain for fair wages, benefits, and improved working conditions.

Currently, 20 states do not provide all state and local public sector workers the ability to collectively bargain for fair wages and benefits.

Among the bill’s provisions is a requirement that public sector employers recognize labor unions chosen by a majority of the employees voting, and that they bargain with the labor organization over wages, hours, and other terms and conditions of employment. If states fail to meet these standards, the bill gives the federal government the authority to intervene on behalf of public-service workers, ensuring their rights to form a union and negotiate with their employer.

NCL strongly supports the Public Service Freedom to Negotiate Act and urges swift Congressional action in both the House and the Senate so that President Biden can sign the bill into law.

“America would be unrecognizable without the gains made by working families and unions,” said Greenberg. “The movement needs an even playing field to do its job. These three bills are a good start, and NCL is proud to support each of them.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.