Bag Industry – Coach Factory Outlets 2014 http://coachfactoryoutlets2014.com/ Tue, 20 Sep 2022 22:09:03 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://coachfactoryoutlets2014.com/wp-content/uploads/2021/06/icon-2.png Bag Industry – Coach Factory Outlets 2014 http://coachfactoryoutlets2014.com/ 32 32 Predatory payday loan companies thrive amid unequal laws and stolen data | Local News https://coachfactoryoutlets2014.com/predatory-payday-loan-companies-thrive-amid-unequal-laws-and-stolen-data-local-news/ Tue, 20 Sep 2022 19:46:57 +0000 https://coachfactoryoutlets2014.com/predatory-payday-loan-companies-thrive-amid-unequal-laws-and-stolen-data-local-news/ Special for the News Herald ASHEVILLE — As consumers lost their jobs and struggled to make ends meet during the COVID-19 pandemic, many turned to payday loans and other short-term solutions. This has not only allowed predatory lenders to thrive – many borrowers still face exorbitant interest rates and opaque fees – but has also […]]]>

Special for the News Herald

ASHEVILLE — As consumers lost their jobs and struggled to make ends meet during the COVID-19 pandemic, many turned to payday loans and other short-term solutions. This has not only allowed predatory lenders to thrive – many borrowers still face exorbitant interest rates and opaque fees – but has also created a fertile environment for scam artists, according to a new in-depth study from the Better Business Bureau. .

Payday loan laws are managed from state to state among the 32 states in which they are available, and a complex web of regulations makes the impact of the industry in the United States difficult to track. The BBB study, however, finds a common thread in the triple-digit interest rates that many of these loans carry – camouflaged by interest compounded weekly or monthly, rather than annually, as well as significant rollover fees.

From 2019 to July 2022, BBB received nearly 3,000 customer complaints about payday loan companies, with a disputed dollar amount of nearly $3 million. In addition, over 117,000 complaints have been filed against debt collection companies at BBB.

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Complainants often said they felt ill-informed about the terms of their loans. Many fall into what consumer advocates call a “debt trap” of racking up interest and fees that can force customers to pay double the amount originally borrowed. A St. Louis, Missouri woman recently told BBB that over the course of her $300 loan, she paid over $1,200 and still owed an additional $1,500.

The scammers haven’t missed an opportunity to take advantage of consumers either, with BBB Scam Tracker receiving over 7,000 reports of loan and debt collection scams representing around $4.1 million in losses.

Posing as payday loan companies and debt collectors, scammers use stolen information to trick consumers into handing over banking information and cash. In one case, BBB discovered that hackers had stolen and released detailed personal and financial data for more than 200,000 consumers. News reports indicate that this is not an isolated incident.

Just two weeks ago, a North Carolina man received a voicemail from a company called Document Delivery Services informing him of an ongoing civil complaint and that it was imperative that he contact the issuing company. . The phone number the scammer called from was a different phone number than the one left in voicemail. When the man called both numbers back, they were answered by the same man who said he worked for a company called Parker & Schultz. The scammer then recited much of that consumer’s personal information, but when the scammer mentioned having a debt on a credit card that the consumer never owned, he knew it was ‘a scam. Eventually the scammer became agitated and said it would be dealt with in court and hung up. Luckily, this consumer was smart enough to realize it was a scam and suffered no monetary loss.

Regulators at the federal level have passed tougher laws to combat predatory lending, but those regulations have been rolled back in recent years, leaving states to set their own rules on interest rate caps and other aspects of lending. on salary. More than a dozen states introduced legislation last year to regulate payday loans, but the landscape of legally operating payday lenders remains inconsistent across states. Currently, payday loans are not allowed in 18 states, according to Pew Charitable Trust.

In addition, the Military Loans Act sets a rate of 36% on certain payday loans. When it comes to fraudulent behavior, law enforcement is limited in what they can do to prosecute payday loan scams. Some legal payday lenders have attempted to prevent scams by educating consumers about the ways in which they will or will not contact borrowers.

The BBB study advises consumers to thoroughly research all of their borrowing options — as well as the terms and conditions of a payday loan — before signing anything to take out a short-term loan.

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Cash Advance Apps vs Payday Loans: Which is Better? https://coachfactoryoutlets2014.com/cash-advance-apps-vs-payday-loans-which-is-better/ Sun, 18 Sep 2022 16:00:36 +0000 https://coachfactoryoutlets2014.com/cash-advance-apps-vs-payday-loans-which-is-better/ (NerdWallet) – If you were asked to imagine a payday lender, you might think of a storefront in a strip mall with green dollar signs and neon slogans like “everyday payday “. You probably wouldn’t imagine a mobile app that advertises on TikTok and sports a colorful logo. But cash advance apps like Earnin and […]]]>

(NerdWallet) – If you were asked to imagine a payday lender, you might think of a storefront in a strip mall with green dollar signs and neon slogans like “everyday payday “. You probably wouldn’t imagine a mobile app that advertises on TikTok and sports a colorful logo.

But cash advance apps like Earnin and Dave provide advances with the same borrowing and repayment structure as payday lenders, and consumer advocates say they carry similar risks. Both are quick, no-credit-check options for closing an income gap or easing the pressure of inflation.

Neither is an ideal first choice for borrowing money quickly, but knowing their differences can help you save money and avoid hurting your finances.

Cash advance apps work like payday loans

Like most payday loans, a cash advance or paycheck app lets you borrow money without a credit check. You are also required to repay the advance, plus any fees you have agreed, on your next payday.

One payment cycle is usually not enough for borrowers to repay a payday loan, so many people fall into the habit of getting another loan to pay off the previous one, says Alex Horowitz, senior director of The Pew Charitable Trusts.

App users may find themselves in a similar cycle. A 2021 study by the Financial Health Network found that more than 70% of app users get back-to-back advances. The study doesn’t say why users re-borrow, but Horowitz says the behavior is particularly similar to payday loans.

“Direct-to-consumer payday advances share DNA with payday loans,” he says. “They’re structured the same, they have repeat borrowings, and they’re scheduled based on the borrower’s payday, which gives the lender strong collectability.”

Apps can offer more flexibility

Payday lenders and payday advance apps collect repayment directly from your bank account. If your account balance is too low when funds are withdrawn, you could incur overdraft fees, says Yasmin Farahi, senior policy adviser at the Center for Responsible Lending.

An application may try to avoid overcharging your account. Mia Alexander, Vice President of Customer Success at Dave, says the app reviews users’ bank accounts before withdrawing the refund. If the refund puts the balance close to zero or negative, the app may not withdraw the funds, she says.

However, apps typically include language in their user agreements that while they try not to overcharge your account, they aren’t liable if they do.

In states where payday loans are allowed, a payday lender is unlikely to offer a free, unsolicited payment extension, as some apps say. Some states require payday lenders to offer extended payment plans at no cost to troubled borrowers, but a 2021 report from the Consumer Financial Protection Bureau says some lenders are misrepresenting plans or not disclosing them.

Unlike payday lenders, the apps don’t make collection calls. If a user revokes access to their bank account to avoid a refund, the app will not attempt to collect the funds. The user simply cannot get another advance until they repay the previous one.

Payday loans cost more

Payday loans tend to have high mandatory fees, unlike apps. Instead, they charge a small fee that users can accept throughout the borrowing process. These fees can add up, but they are usually lower than those charged by payday lenders.

For example, an app might charge a monthly subscription fee or a fee for instant access to funds. Most cash advance apps also ask for a tip for service.

The charges on a $375 payday loan are most often about $55 over a two-week period, Horowitz says. Since the cash advance application fee is mostly optional, you can easily keep the cost below $10.

Earnin user Sharay Jefferson says she’s used payday loans in the past, but switched to a cash advance app because it’s a cheaper way to cover bills and unexpected expenses.

“If you get a $200 payday loan, you might be paying something back three times over,” she says. “With Earnin, I’m going to have to pay that $200 back, plus whatever I decide to give them. It’s much cheaper. »

Technically, apps are not lenders

Regulators like the CFPB have not classified payday advance apps as lenders, despite their similarities to payday loans.

Earnin CEO and Founder Ram Palaniappan says the app is more like a payroll service or an ATM because it makes it easier to access your own funds. Earnin asks users to upload a timesheet showing they worked enough hours to earn the cash advance amount. Other apps scan a user’s bank account for income and expenses to determine if they qualify for an advance.

Farahi says applications should be treated like creditors, meaning they would follow the Truth in Lending Act, which requires creditors to disclose an annual percentage rate. An APR allows consumers to compare costs between financing options. For example, users can compare the APR of a cash advance app to that of a credit card and choose the most affordable.

“People still need to know what the real cost of credit is and to be able to assess it and really compare that cost to other options,” she says.

Applications should also comply with applicable state lending laws. Currently, 18 states and Washington, DC, have maximum interest rate caps that could limit application fees, she says.

Cash Advance App vs Payday Loan: Which is Better?

If you’re in dire need of cash, you may have better alternatives than payday loans and advanced apps, Farahi says.

Local charities and nonprofits can provide basic food and clothing needs. A family or friend could lend you money at no additional cost. If you have a few hours to spare, a side gig could generate as much money as a typical payday loan or cash advance application.

If you have the choice between an app and a payday loan, the app is probably the best option because:

  • It is less expensive.
  • It may not trigger overdraft charges.
  • If you don’t pay it back, the app won’t send you to collections.

A cash advance from an app is unlikely to leave you in a better financial position, Farahi says. But it may be a little less likely than a payday loan to make things worse for you.

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Tired of overdraft fees? Try Postal Banking https://coachfactoryoutlets2014.com/tired-of-overdraft-fees-try-postal-banking/ Thu, 15 Sep 2022 19:25:00 +0000 https://coachfactoryoutlets2014.com/tired-of-overdraft-fees-try-postal-banking/ Many of us have been hit with overdraft fees on our checking account before, and while it was nice to have the protection, the $33 fee – the average overdraft fee these days – definitely stung. . What if I told you that overdraft fees are an intentional failure move by a wealthy few in […]]]>

Many of us have been hit with overdraft fees on our checking account before, and while it was nice to have the protection, the $33 fee – the average overdraft fee these days – definitely stung. .

What if I told you that overdraft fees are an intentional failure move by a wealthy few in an increasingly rigged game against the rest of us?

Banks have taken in over $460 billion in overdraft fees since 2010. In the last three months of 2020 alone, JPMorgan Chase, Wells Fargo and Bank of America collectively took in over $300 million in overdraft fees. One bank CEO – Bill Cooper of Minnesota-based TCF National Bank, who was sued by the federal government for “cheating consumers into expensive overdraft services” – even named his yacht “Overdraft”.

A small percentage of accounts – likely low-income consumers – account for almost 80% of all overdraft income.

It’s no exaggeration to call overdraft fees predatory. The Consumer Finance Protection Bureau (CFPB) found that less than 9% of consumer accounts pay ten or more overdrafts per year. This means that a small percentage of accounts – likely low-income consumers – account for almost 80% of all overdraft income.

What if I also told you that it doesn’t have to be that way, that in over 100 other countries people don’t have to worry about overdraft fees? This is because these countries have publicly funded postal banking services. People in countries as diverse as South Africa and Kazakhstan can open an account, cash a cheque, get cash or deposit at low-cost ATMs, transfer money, pay bills, etc., without a predatory bank siphoning off the profits of their leaders. yachts.

That’s why the US Postal Service needs to expand its small postal banking pilot program, launched last year, even though it hasn’t been as popular as expected. The agency only offered banking services at four locations and did little to market the program.

To be effective, the program must be significantly expanded to meet demand. The number of “unbanked” Americans is staggering. One in four U.S. census tracts, home to 21 million people, has no bank within its borders. More than 7 million people do not have a bank account.

It harms everyone. Without a bank account, it can be difficult to participate in the economy. With the more commonly used direct deposit payroll, it can be difficult to find a job, buy a car or pay rent. Instead, low-income people rely on predatory payday loans. Payday loans come with an absurd interest rate, often starting at 300 percentage points, which can double over time.

Like overdraft fees, payday loans are meant to be a “short-term” solution. But they don’t actually shake that way. Some 76% of total industry volume comes from borrowers reborrowing before their next paycheck.

The banks and the elected officials who carry their water qualify the postal bank as “radical”. Still, the Postal Service offered banking services from 1911 to 1967, and restoring the service could generate $9 billion in much-needed revenue for the agency each year. One of the reasons the Postal Bank was phased out was that it offered relatively high interest rates, which competed with “more traditional banking institutions”.

Worldwide, 1.5 billion people receive financial services at their local post office. There is no reason for the United States not to follow. A recent poll shows a strong majority of Democrats, and even Republicans, support postal banking. The only thing standing in our way is the billions of lobbying dollars Wall Street spends every election cycle to protect its predatory profits.

This column was produced by Progressive Perspectives, which is run by The Progressive magazine and distributed by Tribune News Service.

September 15, 2022

2:19 p.m.

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If you must be immoral, be honest about it https://coachfactoryoutlets2014.com/if-you-must-be-immoral-be-honest-about-it/ Mon, 12 Sep 2022 04:00:00 +0000 https://coachfactoryoutlets2014.com/if-you-must-be-immoral-be-honest-about-it/ Payday lenders are hated by many, and understandably so. I have mixed feelings about them though. They make money from a societal failure, and one that seems entirely preventable: millions of Americans living paycheck to paycheck, unable to cope with an emergency. Higher wages and an improved social safety net could eliminate the need for […]]]>

Payday lenders are hated by many, and understandably so. I have mixed feelings about them though. They make money from a societal failure, and one that seems entirely preventable: millions of Americans living paycheck to paycheck, unable to cope with an emergency. Higher wages and an improved social safety net could eliminate the need for these institutions, but no one in power seems interested in making that happen. To that extent, payday loans can be seen as an unnecessary “necessary evil.” Abolishing them, without these aforementioned changes, would hurt those who have no other means of getting quick cash. That’s what payday lenders hang their hats on: it’s horrible, but it’s honest. Therefore, I can imagine – and wish for – a world without payday lenders, and I have an idea of ​​how society achieves it. Earnin is a company that comes from a new generation of “quick cash solutions”, and they need you to believe they are ethical. Something about this viscerally upsets me, not only about the company, but also about the culture that spawned it.

The way Earnin presents itself, you’d think it’s either a charity or a help fund. For example, they boast that there is no charge to use the app and no interest is charged on the money you borrow. Instead, they rely on a purely voluntary tipping system to stay afloat. They call it “giving back to the community”. According to NBC, they suggest tipping around 10% of what you borrow.

It sounds cuddly, almost. All that talk of volunteerism, community, and reciprocity might make you forget what 10% interest on a short-term loan looks like. If you pay that off after a week, which is long for a payday loan, 10% equals an annual percentage rate (APR) of 521.43%. Unless you live in Texas, Nebraska or Idaho, this is a worse deal than your average payday loan. If a friend asked me for $10 after I borrowed $100, I could give it to them. It just seems right. And Earnin, above all else, tries to make you think of them as a friend.

This is where we see the subtle toxicity of “giving back” to Earnin. Have you wondered how this business got start-up capital? I guess they had done extensive research, showing that most people would want to “give back” to a company with their brand marketing. They probably identified that $5, $10 seemed like a reasonable tip in most people’s minds, even though it isn’t. On top of that, this model allowed them to avoid classification as payday lenders, exempting them from regulation, which is a very nice value proposition. Some might call him cynical, manipulative, even evil. This is before we highlight the requirement that they follow you all the time (to make sure you are working). And that’s on top of their access to your bank account, which has allowed them to overdraw customers so often they’ve been the subject of a class action lawsuit (despite offering to pay a fee overdraft). So we see that behind the hazy exterior is a terrifying enterprise, just as exploitative as its predecessors. I remember the expression “wolf in sheep’s clothing”.

Still, Earnin insists it’s built around “not leaving people behind” and claims to be backed by a strong and diverse community. It only adds insult to injury. Earnin’s CEO says he found this solution when his employees at another company couldn’t pay their bills. Giving them money became the proof of concept for Earnin. At that moment, I couldn’t help but ask, “If your employees can’t pay their bills as often, why not pay them more instead?”

And this is where I turn my horror to society at large. Earnin, in his absurd attempt to turn payday loans into activism, sounds like performance art. It could serve as a satire on a problem I see cropping up everywhere, namely: our need to always feel as if the choices we make are moral, even when they aren’t. The way I see it, this impulse pushes us in one of three directions whenever we choose to act against our moral compass. There is 1) imagining that we have no other choice, although we often do, 2) imagining that it is the most moral choice we could have made when it rarely is and 3) deciding that whatever problem we are contributing to does not really exist.

In Earnin’s case, we see an attempt to make payday lending ethical, or at least portray it as such. Earnin’s message implicitly involves the belief that poverty is a fact of life, that there will always be a market to lend to the desperate, and therefore they will be the nicest people in that space. Unlike traditional payday lenders, they make you feel like their existence is inevitable, there’s no better world to imagine. You feel helpless and they console you with the fanciful idea that they can make money out of the struggles of the poor without causing harm. The poverty of the imagination, combined with the richness of the illogical, is depressing. It’s like seeing a wall 10 feet away and praying to fly over it, ignoring the open door 10 feet away.

We see that everywhere. In fact, payday lenders are only honest because they’ve been a pariah of the media for at least a decade – they can’t help but admit the truth. In Duke’s case, we can think about how people “sell” themselves. In the end, most of us justify it by saying we have no other choice, proclaiming that we are “built different” or finding ways to imagine doing the job without any of the vagaries morals that accompany it. No one wants to admit they’re making a choice that’s a shade of gray.

What is the consequence? Seek to win: In our need to always be “good, in fact,” we refuse every opportunity to reflect on the choices we have made. An ethical short-term lender can’t exist, it’s almost a contradiction in terms, so Earnin reinvents a world where it can happen: a world where poverty will never go away and where there is no moral hazard in ask for a 500% APR. of a poor man. Without some delusion, how can someone who makes obscure choices present themselves as totally moral? One could even point out that by accepting to live in an unjust society, we fail to be moral on a daily basis, and to think otherwise is also an act of illusion. The consequence of this self-deception is clear and terrible: we exclude the possibility of changing the world for the better.

After all, if holding a dodgy job or attending a dodgy institution is unbearable without the belief that you are a “good person,” you must find ways to ignore or deny moral hazard. At this point, how are you part of the solution? Either you don’t believe the problem exists, or you’ve convinced yourself that you’re already doing your best! Without reflection, honesty with oneself, change is impossible.

What then is the remedy? I think we have to learn to accept that we can’t be unambiguously good. Ultimately, it is almost impossible to avoid participating in some form of injustice. Almost every day we make understandable, but not justifiable, decisions that run counter to our ethics. To give an example: we really should be pushing for climate legislation every day, but most of us have other things we’re more concerned about. This doesn’t excuse making the wrong choice, nor is it an invitation to nihilism. Rather, it is a call to admit that we are all hypocrites to varying degrees and that we need to keep asking ourselves why we are not doing more.

Admitting wholeheartedly that you are making a selfish choice keeps the door open to change. At some point, you may decide that you can or must be better. Until then, honesty will keep you lucid. Wanting to be the hero will cause you to warp your worldview, your beliefs about reality and morality, into something unrecognizable just so you can get out of bed. The need to be a “good person” will cause you to adopt the language and spirit of activism and clumsily force them to agree with the work you are doing. Having to think like that is how you end up with a college kid writing a column, expressing the horror that you just called payday lending a self-help exercise.

Dan Reznichenko is a Trinity Junior. His column is broadcast on Mondays alternately.


Dan Reznichenko
| Opinion Editor

Dan Reznichenko is a junior at Trinity and opinion editor of the 118th volume of The Chronicle.

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Government of Canada consultation on reducing the criminal interest rate https://coachfactoryoutlets2014.com/government-of-canada-consultation-on-reducing-the-criminal-interest-rate/ Fri, 09 Sep 2022 19:13:47 +0000 https://coachfactoryoutlets2014.com/government-of-canada-consultation-on-reducing-the-criminal-interest-rate/ Authors): Joyce M. Bernasek, Dominic Duchesne September 9, 2022 Last August, the Government of Canada launched its Advance Consultation Paper (the Consultation Paper) to solicit feedback from stakeholders and vulnerable members of the public on the criminal interest rate and availability of high-cost installment loans often offered by other lenders. Although the Government of […]]]>


Authors): Joyce M. Bernasek, Dominic Duchesne

September 9, 2022

Last August, the Government of Canada launched its Advance Consultation Paper (the Consultation Paper) to solicit feedback from stakeholders and vulnerable members of the public on the criminal interest rate and availability of high-cost installment loans often offered by other lenders.

Although the Government of Canada’s policy objective has not yet resulted in a new criminal interest rate, a reduction in the criminal interest rate could have market implications for lenders and borrowers.

Interest rates in Canada must not exceed 60% – section 347 of the Criminal Code

When first introduced in 1980, the criminal interest rate was established to deter loan sharking and other predatory lending practices. Section 347 of the Criminal Code (the Code) makes it an offense to: (1) enter into an agreement or arrangement to receive interest at a rate greater than 60% of the total value of the credit advanced; and (2) actually receive interest in excess of 60% of the total value of the credit advanced. It should be noted that the Code broadly defines the concept of “interest” to include costs, fines, penalties or commissions. Overdraft fees and discharge fees also fall within the scope of what would be considered “interest”. Although the consultation paper discusses high-cost installment loans, it is important to note that some payday loans are exempt from the Code.

High Cost Installment Loans

The consultation paper targets alternative lenders in their offering of what are universally considered “high cost loans” or “high interest” loans. Alternative lenders provide loans quickly with less stringent requirements and offer longer-term, higher-cost installment loans. The consultation document reveals that these installment loans have interest rates of up to 47% per year. With additional fees and charges included, and with frequent compounding interest, many of these installment loans equate to having an overall annual interest rate just below or nearly equal to the criminal interest rate of 60%.

A rate set at 60% for 40 years

The Consultation Document undertakes to better understand the impact that such a rate cut could have on the market and on the availability of financial products as we know them. As the consultation document points out, the criminal interest rate is a fixed rate not linked to market rates. When the criminal interest rate was introduced, the Bank of Canada’s overnight rate was 21%. At that time, the gap between the overnight rate and the criminal rate was 39%. Today, the gap is close to 60%. Thus, the Government of Canada wishes to know whether the interest rate pricing set by other high-cost lenders reflects the actual credit risk of the borrower, or whether the interest rates of these high-cost financial products are fixed simply respect the ceiling authorized by the penal interest rate.

Considerations for Lenders

Responses to the consultation paper are expected by October 7, 2022. Any changes to the criminal interest rate would apply to all credit products in Canada and affect a wide range of borrowing products on the market. If you or your business need help determining the potential impact of a lower criminal interest rate, please do not hesitate to contact the authors of this article.

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Why Young Adults in Minority Communities Have Lower Credit Scores https://coachfactoryoutlets2014.com/why-young-adults-in-minority-communities-have-lower-credit-scores/ Thu, 08 Sep 2022 12:30:01 +0000 https://coachfactoryoutlets2014.com/why-young-adults-in-minority-communities-have-lower-credit-scores/ Damir Khabirov | iStock | Getty Images According to a new study from the Urban Institute, young adults from majority black and Hispanic communities tend to have lower average credit scores than those residing in majority white communities. The research found that 25- to 29-year-olds in majority-Black communities have a median credit score of 582 […]]]>

Damir Khabirov | iStock | Getty Images

According to a new study from the Urban Institute, young adults from majority black and Hispanic communities tend to have lower average credit scores than those residing in majority white communities.

The research found that 25- to 29-year-olds in majority-Black communities have a median credit score of 582 — below the subprime threshold of 600. In comparison, 25-to-29-year-olds in majority-Hispanic communities had a score of median credit. of 644, while those in majority white communities had a median score of 687.

Additionally, young adults from predominantly Black and Hispanic communities are also more likely to see their credit rating decline as they age, according to the nonprofit research organization.

Between 2010 and 2021, 32.9% of 18-29 year olds in majority black communities saw their credit score drop, while 26.2% of those in majority Hispanic and only 21% of those in majority white communities saw their credit score drop. lower credit rating. .

The research is based on the Urban Institute’s analysis of consumer records from one of the three major credit bureaus. The precise source of the data was not disclosed.

Bad scores ‘can lead to cycles of debt’

These low scores have significant and lasting financial consequences.

“People with credit scores below that [600] are less likely to get credit at affordable rates,” said Thea Garon, senior policy program manager at the Urban Institute.

“They’re more likely to borrow high-cost credit, which can lead to cycles of debt and further erode their credit ratings,” she said.

Subprime lending options tend to be more visible in diverse underserved communities, noted Bruce McClary, senior vice president of memberships and communications at the National Foundation for Credit Counseling.

Residents of these areas who have income problems and do not have much job stability may turn to subprime financing with higher interest rates and high fees, which can hurt their credit score. “It’s kind of a recipe for disaster,” McClary said.

One such high-interest product, payday loans, has recently come under scrutiny for the cycles of high fees and debt associated with them.

Score disparity stems from discriminatory policies

Credit scores measure the likelihood of a borrower repaying their debt on time. Most credit scores range from 300 to 850. The higher the score, the better the interest rate a borrower can get on credit cards, as well as mortgages, autos and other loans.

Credit scores are determined by factors such as a borrower’s current outstanding debts, number and type of loans they have, length of time loans are open and available, bill payment history and the amount of credit used.

The reason black and Hispanic borrowers start behind on their credit scores has less to do with individual behavior and more with the limited financial resources of their family household, Garon said.

These households have less wealth to draw from previous generations because of lending policies that favored white borrowers, such as homeownership covenants that prevented blacks from living in majority white areas and redlining, whereby mortgage lenders restricted the customers they served.

“The disparities are rooted in decades of discriminatory policies that have systematically denied communities of color equal access to affordable financial services as well as opportunities to pass on wealth to future generations,” Garon said.

Closing the gap requires policy changes

For people who are trapped in a cycle of high-cost credit borrowing, it can be helpful to seek help from counselors or nonprofits, Garon said. Credit unions can also be a resource for consolidating loans at lower interest rates, making it easier to pay down debt balances.

Importantly, because credit scores are based on how well a person is honoring their financial obligations, they don’t necessarily need more ways to get their rating up.

“You can start small and still build a pretty decent credit score if you need to rebuild your credit or improve your credit to get to where you’re able to qualify for lower interest rates and loans that meet your needs,” McClary said.

But for the system to really change, policymakers will need to address the problem with proactive measures to ensure that lenders of all kinds make loans fairly and that the credit scoring system gives all borrowers a fighting chance. get affordable credit, Garon said.

Learn more about personal finance:
Mortgage rejection rate for black people twice that of general population: report
These bank charges could strain your budget
New guaranteed income experiments are happening across the country

If rent payments were included in credit scores, for example, it might better reflect people’s ability to pay their obligations, she said.

Additionally, other policies could close the racial wealth gap, such as universal baby bonds, progressive childhood development accounts, tuition-free public universities, as well as student aid. buying a first home, Garon said.

Bank of America recently announced the launch of new mortgage products with no down payment and no closing costs for certain markets, including predominantly black and/or Hispanic/Latino neighborhoods in Charlotte, NC; Dallas; Detroit; Los Angeles; and Miami. Other financial institutions, including Citi, also offer programs to make their lending practices more inclusive.

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BBB study finds payday loan companies thrive amid uneven laws and stolen data – InsuranceNewsNet https://coachfactoryoutlets2014.com/bbb-study-finds-payday-loan-companies-thrive-amid-uneven-laws-and-stolen-data-insurancenewsnet/ Tue, 06 Sep 2022 11:43:11 +0000 https://coachfactoryoutlets2014.com/bbb-study-finds-payday-loan-companies-thrive-amid-uneven-laws-and-stolen-data-insurancenewsnet/ As consumers have lost their jobs and struggled to make ends meet during the COVID-19 pandemic, many have turned to payday loans and other short-term solutions, with an increase in solutions in line. This has not only allowed predatory lenders to thrive – many borrowers still face exorbitant interest rates and opaque fees – but […]]]>
As consumers have lost their jobs and struggled to make ends meet during the COVID-19 pandemic, many have turned to payday loans and other short-term solutions, with an increase in solutions in line. This has not only allowed predatory lenders to thrive – many borrowers still face exorbitant interest rates and opaque fees – but has also created a fertile environment for scam artists, according to a new in-depth study from the Better Business Bureau. (BBB).

Payday loan laws are managed from state to state among the 32 states in which they are available, and a complex web of regulations makes the impact of the industry in the United States and Canada difficult to understand. follow. The BBB study, however, finds a common thread in the triple-digit interest rates that many of these loans carry – camouflaged by interest compounded weekly or monthly, rather than annually, as well as significant rollover fees.

From 2019 to July 2022, BBB received nearly 3,000 customer complaints about payday loan companies, with a disputed dollar amount of nearly $3 million. In addition, over 117,000 complaints have been filed against debt collection companies at BBB. Complainants often said they felt ill-informed about the terms of their loans. Many fall into what consumer advocates call a “debt trap” of racking up interest and fees that can force customers to pay double the amount originally borrowed. A St. Louis, Missouri woman recently told BBB that over the course of her $300 loan, she paid over $1,200 and still owed an additional $1,500.

The scammers haven’t missed an opportunity to take advantage of consumers either, with BBB Scam Tracker receiving over 7,000 reports of loan and debt collection scams representing around $4.1 million in losses. Posing as payday loan companies and debt collectors, scammers use stolen information to trick consumers into handing over banking information and cash. In one case, BBB discovered that hackers had stolen and released detailed personal and financial data for more than 200,000 consumers. Reports say this is not an isolated incident

According to a report by BBB Scam Tracker, an Alabama man went online to apply for a loan. He got all kinds of responses, saying they even took people with bad credit. Eventually, he settled on one for $5,000, but was told he had to pay $100 in gift cards first. This happened a series of times where they told him that other reasons (credit increases, etc.) were needed to approve the loan. In the end, he said he lost $8,300.

Regulators at the federal level have passed tougher laws to combat predatory lending, but those regulations have been rolled back in recent years, leaving states to set their own rules on interest rate caps and other aspects of lending. on salary. More than a dozen states introduced legislation last year to regulate payday loans, but the landscape of legally operating payday lenders remains inconsistent across states.

Currently, payday loans are not allowed in 18 states, according to Pew Chartiable Trust. In addition, the Military Loans Act sets a rate of 36% on certain payday loans. When it comes to fraudulent behavior, law enforcement is limited in what they can do to prosecute payday loan scams. Some legal payday lenders have attempted to prevent scams by educating consumers about the ways in which they will or will not contact borrowers.

The BBB study advises consumers to thoroughly research all of their borrowing options — as well as the terms of a payday loan — before signing anything for a short-term loan. The study also includes recommendations for regulators:

Cap consumer loans at 36%

Educate more people about no-cost extended repayment plans

Require lenders to test whether consumers can repay their loans

Require Zelle, Venmo, and other payment services to offer refunds for fraud

Where to report a payday loan scam or file a complaint:

● BBB.org/ScamTracker

● Federal Trade Commission (FTC) – ReportFraud.ftc.gov

● State attorneys general can often help. Find your state attorney general’s website to see if you can file online.

● If you have an overdue payment on a payday loan, the Consumer Financial Protection Bureau may have resources to help you set up a payment plan.

Source: BBB.org

Find more information about this study and other BBB scam studies at BBB.org/scamstudies. To report a scam, go to the BBB Scam Tracker. To find reputable companies, go to https://www.bbb.org.

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Will debt collectors call my family for a delinquent payday loan? https://coachfactoryoutlets2014.com/will-debt-collectors-call-my-family-for-a-delinquent-payday-loan/ Sun, 04 Sep 2022 14:10:28 +0000 https://coachfactoryoutlets2014.com/will-debt-collectors-call-my-family-for-a-delinquent-payday-loan/ Dear Penny, I’m on Supplemental Security Income (SSI) and my car broke down. I needed extra money to pay my rent, so I took out a $400 payday loan. The winning amount is $567.91. I won’t be able to pay that much and still pay my bills. The monthly payment is $170.45, which I can’t […]]]>
Dear Penny,

I’m on Supplemental Security Income (SSI) and my car broke down. I needed extra money to pay my rent, so I took out a $400 payday loan. The winning amount is $567.91. I won’t be able to pay that much and still pay my bills. The monthly payment is $170.45, which I can’t afford either. The total balance will be $2,045.40.

I spoke with a consumer credit counselor. They said don’t pay it and let it go to collections. I’m afraid they’ll call my family. I don’t want them to know. Can I do something so they don’t contact my family?

-A.

Dear A.,

I’m afraid you probably can’t stop the lender from contacting your family. If you’ve defaulted on this debt since you wrote to me, you’re no doubt bombarded with calls and text messages.

The lender may already be in contact with your family members. When you take out a payday loan, you often need to provide references that the lender can contact in the event of a default. But lenders may also start calling your family members and friends, even if you haven’t included them as a reference.

The rules for these communications likely fall into a gray area. The Fair Debt Collections Practices Act (FDCPA) is a federal law that governs debt collection practices. The law only allows debt collectors to call non-spouse family members if they’re trying to locate you, but they can’t discuss your debt. They are also prohibited from saying they work for a debt collector unless asked to do so.

However, the FDCPA only applies to third-party debt collectors, not original creditors. Most payday lenders attempt to collect overdue loans internally before sending them to a collection agency. So there is a good chance that the lender who gave you the loan is still trying to collect it.

Some states have laws that place additional limits on collection efforts. You may want to ask your credit counselor if your state laws provide additional protection.

Knowing your rights can be helpful, but let’s face it: the payday loan and debt collection industries are notorious for their sketchy tactics, so even though there’s a law that limits who a collector can contact, don’t don’t assume he’ll follow her. .

Here’s where thinking like a debt collector might come in handy. A collector has one goal, which is to get paid. The more pressure they exert, the more likely you are to pay. Even when they supposedly call family just to locate you, they know a lot of people are embarrassed by their debt and will agree to just about anything once the calls to relatives start.

Don’t play the shame game. Pick up the phone when the lender calls you so it’s clear they have your correct contact information. Be firm about your inability to pay at this time. Avoid showing emotions or divulging details about your personal situation, as this will be used against you.

As for your family, you don’t owe them an account of your finances just because a payday lender calls you. You might say something vague like, “Thank you for letting me know. They called me too. I always try to get to the bottom of things. If they contact you again, I would appreciate it if you would tell them I don’t live with you and ask them to stop calling.

None of this is technically wrong. I have no idea how curious your family is, so I can’t guarantee this will satisfy curious minds. But as long as this debt does not concern them, they are not entitled to more information.

I’m glad you consulted with a credit counselor before deciding to let this loan go to collection. If you have to choose between rent and paying off a payday loan, rent is the winner by far. But make sure you have taken into account all the consequences of a breach.

Once that account is cashed out, you probably won’t be able to take out a payday loan or any other type of credit for at least two years. Obviously, you’ve learned the hard way that payday loans are best avoided. But I guess you applied for a payday loan because you had no alternative. You will therefore need to think about what you would do if you had to face another unexpected expense.

If you can save even a small amount of money, it’s worth asking if the lender would be willing to pay. A tactic that sometimes works is to tell the lender that you are considering bankruptcy. Because creditors must cease collection efforts when you file, they may be willing to settle for less.

Either way, don’t be fooled by the threats you might encounter. You will not be arrested for this debt and your SSI benefits cannot be garnished. Most importantly, don’t let them convince you to turn that debt into a new loan. This will only trap you in an endless payday loan cycle. The damage caused by this loan may be unavoidable, but make it your goal to never go back to this predatory system.

Robin Hartill is a Certified Financial Planner and Senior Writer at The Penny Hoarder. Send your tricky money questions to [email protected].


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Here’s how the Hartford Public Library and its partners plan to help the city’s most vulnerable populations https://coachfactoryoutlets2014.com/heres-how-the-hartford-public-library-and-its-partners-plan-to-help-the-citys-most-vulnerable-populations/ Fri, 02 Sep 2022 18:20:00 +0000 https://coachfactoryoutlets2014.com/heres-how-the-hartford-public-library-and-its-partners-plan-to-help-the-citys-most-vulnerable-populations/ Payday loans, pawnshops, check cashing services and other services that come with high costs, interest rates and fees often lead to the paradox that it is expensive to be poor. Those living in poverty or near the poverty line are often unbanked or underbanked, which can leave them vulnerable to other scams that perpetuate the […]]]>

Payday loans, pawnshops, check cashing services and other services that come with high costs, interest rates and fees often lead to the paradox that it is expensive to be poor.

Those living in poverty or near the poverty line are often unbanked or underbanked, which can leave them vulnerable to other scams that perpetuate the spiral of poverty.

A new program – which brings together the Hartford Public Library, Liberty Bank, the Connecticut Association for Human Services and the Cities for Financial Empowerment Fund – targets one of the most financially vulnerable populations by expanding banking opportunities for the community of immigrants and refugees from the city.

U.S. Senator Richard Blumenthal, Hartford Mayor Luke Bronin, Library President Bridget E. Quinn, and Liberty Bank Vice President of Community Development Glenn Davis were on hand at the Hartford Public Library on Friday to announce that the library has received a $487,000 federal grant to help promote and teach financial literacy to the immigrant community with the Building Social Capital: An Inclusive Approach to Immigrant Financial Immigration program.

The program will help members of the immigrant and refugee community navigate the world of financial institutions, which can be daunting for anyone.

“Immigrants may also have other specific challenges, such as fluency in English, trust issues with financial institutions or government, wondering who is trustworthy in these interactions, they may have already been subject to, perhaps, predatory lending or fees associated with other kinds of financial tools,” Quinn said. “We’re starting something new, which we hope will help communities across the country to serve this population and will strengthen our economy through the work and access this population will now have to these financial service tools.”

Blumenthal, who helped secure the grant with U.S. Senator Chris Murphy, said the grant is an investment in the community, not a cost. He also noted the important work the library does in the community.

“America has always been the land of opportunity, of equal access to uphill,” Blumenthal said. “That’s why people have come to America over the centuries. Libraries are a symbolic and practical sign of America, land of opportunity. … Libraries have been community centers, a source of learning and self-promotion.

He noted that his father immigrated to the United States in the 1930s when he was 17. Back then, Blumenthal said, the banking system was much easier to navigate.

“People today need a lot more education not only to seize opportunities… but also to avoid scams: payday loans, pawnshops, all kinds of promotions and internet promotions,” Blumenthal said. “Ultimately complicated, misleading and misleading stuff. Financial literacy has become a form of opportunity, but also a protection against some of the scams that exist. …Financial know-how is essential in today’s world to seize opportunities and avoid the pitfalls of scammers and scammers. In very difficult economic times, to ensure that consumer purchasing power keeps pace with potential price increases.

Participants in the program agree to deposit in a savings account with Liberty Bank $50 per month for five months, according to a press release. The account will be administered by the library. When the participant reaches the goal of $250, the money is transferred to an individual account in his name and he receives a match of $250, the statement said. Participants can then close the account. However, if they maintain a balance of $250 for another five months, they will receive an additional $250 from library donor funds, the statement said.

During the five months, participants meet for three hours, every two weeks, for financial education and other networking opportunities.

The program will be available to those who have been in the country for less than 10 years.

Bronin said the corresponding aspect of the program is “a powerful thing”.

“It helps solve the fact that so many residents of our community and our country in our country are unbanked,” Bronin said. “About a quarter of Americans are unbanked. You can imagine that percentage is much higher in a community where there is a concentration of poverty and in a community where there is a large immigrant community. this opportunity to connect our residents to banks, financial institutions, savings accounts and provide the educational component that goes with it is really very powerful.

American Place at the Hartford Public Library has proposed and will administer the program, which is expected to launch in the spring, Quinn said.

“This is a really essential program,” Quinn said. “We are super excited for this program.”

YMCA of Greater Hartford Receives $500,000 Grant

The YMCA of Greater Hartford also received a $500,000 grant for improvements and upgrades to its location on Albany Avenue, officials said Thursday.

Lt. Gov. Susan Bysiewicz, House Speaker Matt Ritter and State Rep. Ed Vargas touted the grant, which came from the State Bonding Commission.

“The programs and services provided by local YMCAs across our state are vital to the positive development of our young generation,” Bysiewicz said in a news release. “Children can interact with friends and have fun, learn social-emotional skills and coping mechanisms through practice and play, while being exposed to different and exciting opportunities.”

Ritter and Vargas also stressed the importance of the YMCA.

“We all recognize that the Y is a hub of enrichment programs for families and youth – the programs are essential to our community,” Ritter said.

“Summer enrichment programs are invaluable in the overall development of young people by giving them opportunities and options to learn, develop and improve the problem-solving and social interaction skills that are essential for success,” added Vargas. “I applaud the good work of the YMCA which for generations has been a cornerstone of our community and has had such a positive impact on many lives.

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SEC fines in August: thirteen cases for $293 million https://coachfactoryoutlets2014.com/sec-fines-in-august-thirteen-cases-for-293-million/ Thu, 01 Sep 2022 10:25:10 +0000 https://coachfactoryoutlets2014.com/sec-fines-in-august-thirteen-cases-for-293-million/ At the end of each month, the SEC issues a Notice of Covered Action (NOCA) for all recent enforcement actions with penalties greater than $1 million. This month, the SEC released thirteen NOCAs that included more than $293 million in the penalties. Once a NOCA is published, any whistleblower who has provided information to the […]]]>

At the end of each month, the SEC issues a Notice of Covered Action (NOCA) for all recent enforcement actions with penalties greater than $1 million. This month, the SEC released thirteen NOCAs that included more than $293 million in the penalties.

Once a NOCA is published, any whistleblower who has provided information to the SEC about the matter has 90 days to claim a whistleblower award by filing a WB-APP form. If a whistleblower does not file the WB-APP form in time, he loses his reward. With $293 million in fines recorded this month, there are more than $88 million (30%) in whistleblower rewards up for grabs.

Here is a summary of this month’s NOCAs that feature; a wedding in a French castle, trips to Disney, luxury cars and a private plane:

According to the SEC, the defendants cold-called potential investors and convinced them to buy stock in the microcap companies. The prices and sales volumes matched those of the shareholders who were paying the defendants to promote the stock. The monetary penalty for this behavior will be decided by the court.

According to the SEC, Charles Schwab operated a robo-advisor portfolio for his investors. Schwab said the robo-advisor would seek “optimum performance[s].” In fact, in most market conditions, liquidity in robo-advisor portfolios would cause clients to earn less money even taking the same risk. Meanwhile, Schwab made money from the strategy by using it to get money from clients he took advantage of by loaning it out. To settle the costs, Schwab agreed to pay $187 million.

According to the SEC, Equitable Financial Life Insurance Company provided account statements to about 1.4 million investors who misled them about the fees they were charged. Equitable agreed to pay $50 million to aggrieved investors, most of whom were teachers and public school staff.

Synchronoss Technologies, Inc. and seven senior executives, including the former chief financial officer, were accused of accounting irregularities; Synchronoss has admitted that it incorrectly accounted for numerous transactions and thus filed misleading financial statements. The company paid the costs of $12.5 million and a number of executives are judged.

The SEC has accused Matthew J. Skinner and five entities he owns and controls (Empire West Equity, Inc.; Bayside Equity, LP; Longacre Estates, LP; Freedom Equity Fund LLC; and Simple Growth, LLC) of conducting fraudulent real estate investment offers. . The SEC argues that Skinner told investors their money would be used to fund specific real estate projects or investments, but was instead spent on personal expenses, such as A European vacation, a Maserati and an Aston Martin. The SEC also alleges that Skinner used the investors’ money to make Ponzi-like payments to other investors. The charges have not been settled and no monetary penalty has been announced.

The SEC has charged husband and wife Zhuobin (“Ben”) Hong and Caixia Jiang in a multi-million dollar insider trading scheme involving the securities of Sagent Pharmaceuticals, Inc. According to the SEC complaint, Hong and Jiang purchased large amounts of Sagent securities ahead of a July 11, 2016 announcement regarding the acquisition of the company. Hong and Jiang, who are now in China, tried to evade detection by trading through accounts held in the names of relatives in China. The charges have not been settled and no monetary penalty has been announced at this time.

The SEC has settled charges against Private Advisor Group, LLC for breach of fiduciary duty to advisory clients. The SEC found that PAG invested clients’ money in higher-cost funds to avoid paying transaction fees it would have to bear. As a result, customers paid more for PAG to pay less. PAG paid the costs of $5.8 million.

According to the SEC, UBS marketed and sold a complex investment product to investors, but failed to provide financial advisors with adequate training and oversight of the strategy. Although UBS recognizes the possibility of significant risk in investments, it has not shared this data with advisors or clients. When investors suffered losses, many of them and their financial advisors expressed surprise and closed their accounts. UBS paid the costs of $25 million.

The SEC accused Health Insurance Innovations (HII) and its former CEO Gavin Southwell of misselling health insurance products and then covering up numerous consumer complaints from investors. The charges were settled for $12 million.

The SEC has accused Sky Group USA LLC and its CEO, Efrain Betancourt, Jr., of fraudulently raising at least $66 million through the sale of promissory notes to retail investors, including members of the community. Venezuelan-American from South Florida. According to the SEC complaint, Sky Group and Betancourt falsely told investors that Sky Group would use investors’ money only to make payday loans when, in fact, Betancourt misappropriated millions for personal gain – including for a sumptuous wedding in a castle on the Côte d’Azur (ooh la la!), vacations to Disney resorts and the Caribbean, the costs associated with buying a luxury condo in Miami, and service on his personal Piper plane. Betancourt also reportedly transferred at least another $3.6 million to friends and family. The charges have not been settled and no monetary penalty has been announced at this time.

According to the SEC, NIT Enterprises, its CEO Gary R. Smith, Jason M. Ganton and James E. Cleary, Jr., raised $4.9 million from investors while making false claims that NIT was collecting funds to finance the company’s development efforts. its radiation protection products. In contrast, the SEC alleges that Smith misappropriated $1.25 million of the funds raised to pay for personal expenses. The SEC complaint further alleges that the defendants made baseless promises about NIT’s future profitability, the impending IPO, and expectations to “double or triple” their investment. Ganton and Cleary, had disciplinary backgrounds and previous SEC actions and bars, which were withheld from investors. The charges have not been settled and no monetary penalty has been announced at this time.

The SEC announced that David P. Godwin, whom the SEC accused in September 2015 of fabricating nearly all of ContinuityX Solutions, Inc.’s revenue, has been sentenced in a parallel criminal case to 13 years in prison. The SEC complaint alleges that Godwin devised a scheme to inflate the company’s earnings. The complaint alleges that from April 2011 to September 2012, 99% of the reported revenues came from fraudulent and fictitious sales. According to the complaint, Godwin used the allegedly fraudulent SEC filings to raise millions of dollars from investors and Godwin enriched himself with $1.3 million in compensation from ContinuityX. The SEC litigation against Godwin is ongoing.

The SEC announced judgments against three defendants accused of participating in a fraudulent scheme to sell stock in microcap company Aureus Inc. The SEC complaint alleges that, at least in 2016, Bahadoorsingh, Wilson and Wall, working with the defendant Luis Carrillo, concealed the fact that they controlled the securities of Aureus, Inc., whose shares were publicly traded on the American stock exchanges. According to the complaint, Bahadoorsingh and Carrillo secretly sold millions of Aureus shares after running promotional campaigns to encourage investors to buy the shares. The complaint alleges that as a result of these actions, what appeared to be ordinary trading by unaffiliated investors was in fact a massive stock dump orchestrated by Carrillo, Bahadoorsingh, Wall and Wilson, who sought to profit at the expense of retail investors. . Combined judgments totaled ~$1.3 million.

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