Real Estate Lenders – Josh Adams Realtor http://joshadamsrealtor.com/ Wed, 06 Oct 2021 20:29:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://joshadamsrealtor.com/wp-content/uploads/2021/10/josh.png Real Estate Lenders – Josh Adams Realtor http://joshadamsrealtor.com/ 32 32 It’s time for Ontario to ban predatory payday loan operators: Opinion https://joshadamsrealtor.com/its-time-for-ontario-to-ban-predatory-payday-loan-operators-opinion/ https://joshadamsrealtor.com/its-time-for-ontario-to-ban-predatory-payday-loan-operators-opinion/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/its-time-for-ontario-to-ban-predatory-payday-loan-operators-opinion/ They are everywhere. It’s hard to find a major street corner in an Ontario community that doesn’t have a payday loan service. You’ve seen them: flashy storefront deals delivering quick cash in minutes. Payday loans are time limited and often come with quick approvals and no credit checks. These loans can appeal to those who […]]]>


They are everywhere. It’s hard to find a major street corner in an Ontario community that doesn’t have a payday loan service. You’ve seen them: flashy storefront deals delivering quick cash in minutes.

Payday loans are time limited and often come with quick approvals and no credit checks. These loans can appeal to those who fall into a financial emergency and need quick cash to pay a bill or put food on the table.

But when it sounds too good to be true, it often is. Payday loans are a form of predatory economic violence. We see firsthand the impact on our communities.

Hard-working families are trapped in a cycle of economic violence that can take months or years to break free. The industry is a beast: there are over 800 payday lending points in Ontario and each year between $ 1.1 billion and $ 1.5 billion in payday loans are made to 400,000 people in this province.

While payday loans are regulated by the province of Ontario, for more than two decades the industry has operated in a vacuum of lax government oversight while expanding its base and exploiting consumers.

In January, through a regulatory change, the Ontario government reduced the cost of a payday loan from $ 21 to $ 18 on a $ 100 loan. While a fee of $ 18 on $ 100 of borrowed money may seem like a manageable sum, once annualized, the interest rates these payday lenders charge are 469%.

The business model of the payday loan industry is based on the relentless return of customers to borrow money. Many borrowers do not have the financial resources to pay off the initial loan without taking out another loan to cover basic household expenses, such as food, rent, and other essentials. As a result, many borrowers quickly get caught up in the payday loan trap and run into debt hundreds or even thousands of dollars with lenders before they know what hits them.

Some jurisdictions have taken a strong stand against this type of practice. The province of Quebec limits annual interest rates for all lenders to 35 percent per year. This has slowed the growth of payday lending establishments.

Several governments in the United States, including those in New York and New Jersey, have put in place strict restrictions to make payday loans unprofitable. In Georgia, they went further: payday loans are explicitly prohibited and violate anti-racketeering laws.

Ontario can and must do better.

This week, Bill 59, the Consumer First Act, reaches committee stage at Queen’s Park and proposes adjustments to the Payday Loans Act. The proposed changes offer a bit more oversight and protection against the worst excesses in the industry, but do not go far enough to protect consumers.

While we know that additional powers are being given to cities to advance permitting and zoning powers to protect residents from payday lenders, Ontario can show real leadership by outright prohibiting and just this predatory industry.

Other options, such as postal banking, alternative financial services through credit unions, higher social assistance rates and more affordable housing will have a positive and significant impact on the lives of residents.

In the absence of such bold statements, the legislative changes proposed under Bill 59 allow municipal governments to assume leadership where senior levels of government have faltered.

Hamilton City Council last year voted unanimously to create a new license category for payday loan outlets to address the growing predatory lending crisis.

Hamilton’s new regulations – the first of its kind in Ontario – require payday lending institutions to pay license fees, post the annualized interest rates they charge (relative to the chartered bank) and requiring staff at payday lending institutions to provide city-approved information on credit counseling services.

But the province cannot abdicate the leadership and leave it to the cities alone to fight the scourge of predatory lending.

Payday lenders excel at using clever marketing campaigns to attract customers and retain them. These gadgets encourage borrowers to take out their first loan for just one dollar, or to offer prizes to every 10th customer. These types of practices should be prohibited.

Governments must restrict aggressive advertising for payday loans. We need restrictions similar to cigarette warning labels stuck on point of sale windows because they are bad for our financial health.

The federal government is not blameless either. When the authority over payday loans was transferred to the provinces in 2007, the federal government also allowed payday lenders to bypass the maximum 60% interest rate allowed under the Criminal Code of Canada. The federal government could offload the blame and force payday lenders to follow the law.

It is time for all levels of government to stand up against the excesses of the payday lending industry.

Matthew Green is the City Councilor for Ward 3 in Hamilton. Tom cooper is director of the Hamilton Round Table on Poverty Reduction.



Source link

]]>
https://joshadamsrealtor.com/its-time-for-ontario-to-ban-predatory-payday-loan-operators-opinion/feed/ 0
Reevely: Treat payday lenders like strip clubs and gradually force them out, says anti-poverty group https://joshadamsrealtor.com/reevely-treat-payday-lenders-like-strip-clubs-and-gradually-force-them-out-says-anti-poverty-group/ https://joshadamsrealtor.com/reevely-treat-payday-lenders-like-strip-clubs-and-gradually-force-them-out-says-anti-poverty-group/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/reevely-treat-payday-lenders-like-strip-clubs-and-gradually-force-them-out-says-anti-poverty-group/ Breadcrumb Links Politics Local News Chroniclers Author of the article: David reevely Ottawa resident Amber Slegtenhorst poses for a photo after an Acorn press conference at Ottawa City Hall, Thursday, February 11, 2016. Ottawa Acorn members call on the City of Ottawa pass municipal zoning laws and permits governing predatory lenders. Amber has been affected […]]]>


Content of the article

Ottawa needs a law preventing new payday loan stores from opening near existing stores, says anti-poverty group ACORN, treating them like strip clubs.

Advertising

Content of the article

It’s a very slow fix to financial cancer in poor neighborhoods where people use short-term loans at ridiculous interest rates to try to make ends meet, activists said at a forum that they organized Thursday at the town hall. But it’s something city council can do without help from the federal or provincial government, and Ottawa should start, according to the argument.

The city should also allow payday lenders and charge them $ 2,000 a year, ACORN says – less than what it costs for a strip club, but much more than for a restaurant or tobacco store.

The idea is that the large number of payday lenders in Ottawa is a problem, especially in Vanier. Ten are located a few blocks from Montreal Road, reports ACORN, with the help of researcher and lawyer Peter Kucherepa. He proposes that payday lenders be “strategically located” in poor and troubled neighborhoods and even encourage crime by making money available that fuels drug trafficking.

Advertising

Content of the article

The simplicity – we already know how to do this, we have examples – makes the tactic attractive. He’s just not likely to do much good.

ACORN organizers brought in payday borrowers to explain why they used payday loans. Amber Slegtenhorst said she used payday lenders in large part because of her medical bills: she’s a single mother with six children, two of whom have health issues, and although she works, she has no drug insurance.

“I had to survive, I had to put food on the table,” she said. “It is very unfair that these people target us the way they do. But at the end of the day, it’s hard to stay away.

Tina Ford told the group that she often borrows $ 300 or $ 400 a month, which quickly doubles the interest charges. She has a job, but also has two unemployed sons living with her, which means they are not eligible for the Ontario Works program, she said. “People like me don’t take these loans because I choose to do so,” Ford said.

Advertising

Content of the article

There is obviously a lot going on here.

In theory, there can be payday loans that are worth it: if they’re for, say, auto repair or short-term medication, things that help you with temporary issues that might cost you your job and destabilize your whole life. . If you really only need $ 200 until next Thursday, paying interest and fees on a small loan might be smart.

But borrowing at absurd interest rates is hardly ever smart. Most payday lenders and check tellers scoop the latest lint out of the pockets of people that regular banks don’t see as the value of time, and credit card companies don’t see as worth the risk.

It’s vampire-squid behavior. Payday lenders don’t sneak up on customers and force them to borrow money, but they help people in difficult situations turn into disasters. We would all be better off without them.

Advertising

Content of the article

We would also be better off without cigarettes. We would be better off without alcohol. We’d be better off without meth and heroin. However, attempts to restrict them have not been complete successes. As long as there is demand, supply finds its way.

ACORN argues that the large number of outlets on Montreal Road means a waste of space for productive businesses and that the constant face of storefronts compounds the temptation. There is something to this. But if we reduce the number of payday lenders, we probably won’t reduce the number of payday loans much. We are simply extending the timelines with the remaining lenders. Using zoning means it could take decades to achieve this.

The group recognizes that payday lenders aren’t the source of all the evil: we have regulations requiring payday lenders to post the total cost of a loan in gross dollars, but ACORN also wants lenders to post the annualized interest rates they charge. , which can be greater than 10,000%. The group wants more accessible financial education. They want Canada Post (with its many locations) to offer banking services, which is why the Canadian Union of Postal Workers had a banner at the ACORN event.

These are all much more difficult than the zoning approach, but probably much larger parts of the whole.

dreevely@postmedia.com
twitter.com/davidreevely

Advertising

comments

Postmedia is committed to maintaining a lively but civil discussion forum and encourages all readers to share their views on our articles. Comments may take up to an hour of moderation before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread that you follow, or if a user that you follow comments. Check out our community guidelines for more information and details on how to adjust your email settings.





Source link

]]>
https://joshadamsrealtor.com/reevely-treat-payday-lenders-like-strip-clubs-and-gradually-force-them-out-says-anti-poverty-group/feed/ 0
QuickQuid payday lender to close, leaving thousands of claims in limbo https://joshadamsrealtor.com/quickquid-payday-lender-to-close-leaving-thousands-of-claims-in-limbo/ https://joshadamsrealtor.com/quickquid-payday-lender-to-close-leaving-thousands-of-claims-in-limbo/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/quickquid-payday-lender-to-close-leaving-thousands-of-claims-in-limbo/ The summit of Great Britain payday lender said he would withdraw from the country as a host of complaints and regulatory uncertainties rocked the company. QuickQuid’s US owner Enova had been working for months to reach an agreement with authorities after customers have filed more than 3,000 complaints on the business in the first six […]]]>


The summit of Great Britain payday lender said he would withdraw from the country as a host of complaints and regulatory uncertainties rocked the company.

QuickQuid’s US owner Enova had been working for months to reach an agreement with authorities after customers have filed more than 3,000 complaints on the business in the first six months of the year.

“We worked with our UK regulator to agree a lasting solution to the high number of complaints to the UK Financial Ombudsman, which would allow us to continue to provide access to credit to hard-working Britons,” said the managing director David Fisher by announcing that the company would be stepping down. from the UK this quarter.

QuickQuid’s rival, Wonga, collapsed a year ago. Credit: Pennsylvania

Enova will levy a one-time after-tax charge of approximately $ 74million (£ 58million), which includes a cash charge of $ 43million (£ 33million) to support the termination of its loans in the UK. United.

Enova did not say what would happen to its UK customers.

The company claims to have loaned to more than 1.4 million people in the country.

Millions of people are struggling with debt, according to consumer groups. Credit: Pennsylvania

I am a QuickQuid customer – what should I do?

Customers of payday loan company QuickQuid are expected to continue with their repayments despite uncertainties about the company’s future, the head of the Money and Pensions department said.

Caroline Siarkiewicz, Acting Director General of the Government’s Money and Pensions Department, said: “Many QuickQuid customers won’t know what this means to them.

“While you may be tempted to stop your repayments, sticking to your regular schedule is crucial because if you’ve entered into a loan agreement, you have to stick to it.

“If you miss repayments, you could be hit with additional fees and charges, and that could hurt your credit rating as well. ”

Tola Fisher, personal finance expert at Money.co.uk, said borrowers will likely still have to repay their loans.

Meanwhile, those who complain about the process could experience delays.

“If you are currently seeking compensation from QuickQuid for a mis-sold loan and it goes bankrupt, you will have to wait until the directors have liquidated the company.

“Unfortunately, you might find yourself at the end of a long line to collect your money,” she said.

QuickQuid customers must continue to meet their payment deadlines. Credit: Pennsylvania

QuickQuid is the best known brand of CashEuroNet UK.

The breakdown service industry has faced a squeeze since it was subjected to stricter rules under the city’s regulator, the Financial Conduct Authority (FCA), to prevent people from being trapped in debt spirals, following an outcry from charities and consumer activists.

A cap was placed on the amounts that payday lenders were allowed to charge and they had to meet the FCA’s stricter standards in order to continue operating.

The Financial Ombudsman Service (FOS) received over 3,000 complaints relating to CashEuroNet UK between January and June 2019.

Earlier Thursday, Sky News reported that the auditor Grant Thornton had been appointed to administer the company.

Industry insiders say the industry must constantly change to meet expectations.

Meanwhile, lenders are beset by customer complaints, often encouraged by claims handling companies.

These claims were one of the main reasons rival Wonga was forced to shut down a year ago.

Claims handling companies themselves fear that QuickQuid’s failure could be damaging to consumers who have already faced an industry collapse.

It is not known how many jobs at the payday lender could be at risk if it disappears.



Source link

]]>
https://joshadamsrealtor.com/quickquid-payday-lender-to-close-leaving-thousands-of-claims-in-limbo/feed/ 0
Public Sector Credit Union Considering Salary and Home Loans to Reclaim Lost Ground | Business https://joshadamsrealtor.com/public-sector-credit-union-considering-salary-and-home-loans-to-reclaim-lost-ground-business/ https://joshadamsrealtor.com/public-sector-credit-union-considering-salary-and-home-loans-to-reclaim-lost-ground-business/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/public-sector-credit-union-considering-salary-and-home-loans-to-reclaim-lost-ground-business/ The Public Sector Employees Credit Union (PSECCUL) aims to increase its loan portfolio by 20 percent this year, especially through its payday and home improvement products. PSECCUL essentially intends to double its performance this year, having increased its loan portfolio by nearly 10% to $ 1.63 billion in 2017. The credit union aims to double […]]]>


The Public Sector Employees Credit Union (PSECCUL) aims to increase its loan portfolio by 20 percent this year, especially through its payday and home improvement products.

PSECCUL essentially intends to double its performance this year, having increased its loan portfolio by nearly 10% to $ 1.63 billion in 2017.

The credit union aims to double payday loans from 11% of its portfolio to 22%, said deputy general manager Tamara Maxwell Green. He increased the loan limit in the category from $ 30,000 per month to $ 50,000 per month.

To develop the home loan segment, PSECCUL reduced interest rates on loans from 15 percent per annum to 7.99 percent, and improved its products to attract more business in a market of 100,000 employees. the public sector and their families.

“We have also partnered with NHT to offer up to $ 1.5 million to our members at a minimum interest rate of 6% per annum for a deposit on home / land acquisition, renovation housing, buying solar panels and even for any small house project that members maybe should have done, ”said Maxwell-Green.

The limits on unsecured loans were also increased “to make it easier for unsecured members to access loans to help with production. [activity], like education, debt consolidation, home improvement and more “.

Along with growing its loan portfolio, PSECCUL increased its total assets by eleven percent to $ 2.1 billion last year. Credit union savings also rose 14 percent to $ 1.3 billion.

PSECCUL did not increase its membership during the year, ending the period at 8,620 members, but plans to do so in 2018 with the opening of its fifth branch in Portmore. The credit union is headquartered in Kingston but also has other branches in Manchester, St Mary and St James.

Another branch is slated to open by September at Portmore Park Pen, Caribbean Estate, St Catherine “with extended hours and weekend services,” said Maxwell Green.

The credit union expanded its bond in 2017, helping to expand the membership base. Its bottom line took a hit, however, falling by two-thirds to just under $ 8 million from over $ 24 million in 2016.

“We were just focusing on rebranding, restructuring and staffing,” said Maxwell Green, of reducing the surplus.

Credit is expected to rebound this year, she said, despite spending budgeted for PSECCUL’s 50th anniversary celebrations, held from May 14 to June 9 of this year.

avia.collinder@gleanerjm.com



Source link

]]>
https://joshadamsrealtor.com/public-sector-credit-union-considering-salary-and-home-loans-to-reclaim-lost-ground-business/feed/ 0
Lenders offer loans with bitcoin and digital currency as collateral | The independent https://joshadamsrealtor.com/lenders-offer-loans-with-bitcoin-and-digital-currency-as-collateral-the-independent/ https://joshadamsrealtor.com/lenders-offer-loans-with-bitcoin-and-digital-currency-as-collateral-the-independent/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/lenders-offer-loans-with-bitcoin-and-digital-currency-as-collateral-the-independent/ The misfortunes of one of the first bitcoin investors. Until recently, people who paid next to nothing for virtual currency and watched it soar had only one way to profit from their newfound wealth: to sell. And many were not ready. Lenders on the fringes of the financial sector are now offering a solution: loans […]]]>


The misfortunes of one of the first bitcoin investors. Until recently, people who paid next to nothing for virtual currency and watched it soar had only one way to profit from their newfound wealth: to sell. And many were not ready.

Lenders on the fringes of the financial sector are now offering a solution: loans using a digital treasury as collateral.

As banks remain in the background, startups with names like Salt Lending, Nebeus, CoinLoan and EthLend are stepping into the breach. Some lend – or plan to lend – directly, while others help borrowers obtain financing from third parties. The terms can be onerous compared to traditional loans. But the market is potentially huge.

The price of Bitcoin has hovered around $ 17,000 (£ 12,648) for much of this week, giving the cryptocurrency a total market value of nearly $ 300 billion. About 40% of this is owned by some 1,000 users. That makes a lot of digital millionaires who need homes, yachts, and sheepskin eye masks for $ 590.

“I would be very interested in doing this with my own holdings, but I have yet to find a service to enable this,” said Roger Ver, widely known as “Bitcoin Jesus” for his proselytizing on behalf of the cryptocurrency, in which he in one of the largest holders.

People controlling around 10% of digital currency would probably like to use it as collateral, believes Aaron Brown, former CEO of AQR Capital Management who invests in bitcoin and writes for Bloomberg Prophets. “So I can see a credit industry in the tens of billions of dollars,” he said.

One of the problems is that the price of bitcoin fluctuates violently, which can make holding it dangerous for lenders. This means that the conditions can be steep.

According to David Lechner, chief financial officer of Salt, someone looking to get $ 100,000 in cash would likely have to provide $ 200,000 of bitcoin as collateral and pay 12-20% interest per year. ready.

This corresponds to the interest rates of unsecured personal loans. The difference is that the implementation of bitcoin allows people to borrow more.

The new loans should be of particular interest to miners, whose computers solve complex mathematical problems to obtain new coins and help confirm transactions, Brown said. They have to pay for electricity and equipment. But, like many believers in bitcoin, they don’t like to sell their crypto. Bitcoin startups also need cash to pay their employees.

Late last month, London-based startup Nebeus began helping third-party lenders offer loans backed by bitcoin and ether, another cryptocurrency. The company arranged nearly 100 such loans on day one, according to Konstantin Zaripov, the company’s chief executive. He has since made over 1,000.

Salt offers loans and plans to potentially help banks do the same. He is in talks with financial institutions and aims to strike a deal with at least one of them “within weeks,” Lechner said.

Some companies also require a second form of collateral. Terms can include maintenance calls, requiring borrowers to post more bitcoin if the price drops. This is similar to the margin that a dozen cryptocurrency exchanges already offer customers so that they can increase their trade bets.

In a twist, some lenders are hoping to use blockchains – digital ledgers similar to those that underpin bitcoin – to facilitate lending. The idea is to put the terms together in a ledger to help automate lending and collections. If they take off, the model could challenge peer-to-peer lenders – such as LendingClub, Prosper Marketplace and Zopa – by offering debt investors a more reliable repayment, according to Lucas Nuzzi, senior analyst at Digital Asset Research.

“While this has the potential to revolutionize credit markets, we are still in the very early stages of development,” said Nuzzi. “No company has been able to fully implement such a system. “

For now, banks are largely on the sidelines, reluctant to offer services that could let them hold bitcoins. Some companies don’t have a secure way to store cryptocurrency. And there is no established model for accounting for it in a regulated balance sheet.

Bloomberg



Source link

]]>
https://joshadamsrealtor.com/lenders-offer-loans-with-bitcoin-and-digital-currency-as-collateral-the-independent/feed/ 0
Fiona Phillips investigates the shocking truth behind high interest secured loans https://joshadamsrealtor.com/fiona-phillips-investigates-the-shocking-truth-behind-high-interest-secured-loans/ https://joshadamsrealtor.com/fiona-phillips-investigates-the-shocking-truth-behind-high-interest-secured-loans/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/fiona-phillips-investigates-the-shocking-truth-behind-high-interest-secured-loans/ People are being warned about the risks of high-interest secured loans after the number of requests for help has doubled in two years. In the 12 months leading up to May, Citizens Advice saw 3,000 people in debt, whose family or friends are responsible if you fall behind – up from 1,500 in 2017. The […]]]>


People are being warned about the risks of high-interest secured loans after the number of requests for help has doubled in two years.

In the 12 months leading up to May, Citizens Advice saw 3,000 people in debt, whose family or friends are responsible if you fall behind – up from 1,500 in 2017.

The numbers come like a Panorama probe called Easy Money, Tough Debt? aired tonight.

On the show, Mirror columnist Fiona Phillips asks Treasury Minister John Glen why the 2015 cap on payday loans that killed Wonga and Wageday does not apply to other types of loans.

She also speaks to victims, including Carl Davies – who ‘felt suicidal’ after being weighed down by his ex-wife’s £ 5,000 debt and an APR of 49.9% that took it to 12,000. £.

And social worker Emma Walsh, whose family guaranteed her £ 10,000 loan, talks about how she now struggles to find the £ 395 a month needed to pay her final £ 23,000 bill.



Emma Walsh struggles to pay off her bill

Emma says, “They pretend to be your friends but they are ruthless.”

Since 2015, a new generation of unregulated guarantor lending companies – offering unsecured loans where clients appoint someone else to pay if they don’t – have experienced a 500% business boom.

Bournemouth-based Amigo Loans has an 88% market share and profits have climbed 70% in recent years.

Speaking to Fiona, Mr Glen said: “I have discussed this category of guarantor loans with the Financial Conduct Authority and they are monitoring.”

And on a promised breathing space program, he adds: “The legislation is being introduced this year, although it won’t go live until 2021.”

But it’s too late for computer technician Carl, 36, from Doncaster. He says that four months after their split, ex-wife Rachael persuaded him to guarantee his £ 5,000 loan with Amigo in February 2018.

He said: “I said I was not happy but she said she would not let me see my son. She vowed that she would continue the payments of £ 197 per month for five years.

In May 2018, Rachael defaulted on payment.



Carl Davies ended up in debt of £ 12,000

Carl said, “As far as I know they have abandoned Rachael and are only harassing me now.” If I had known the level of responsibility I had on this loan, I would not have accepted it.

Amigo said Rachael’s creditworthiness was within guidelines and the plaintiff and guarantor were given the same checks.

He also maintains that his 49.9% interest rate is fair because he deals with two clients rather than one and they only ask a guarantor to step in until 14 days after a default.

Emma, ​​36, from Tredegar, Wales, earns £ 16,000 a year and took out her first loan of £ 2,000 in 2015.

She was then offered a top-up loan, which raised her to £ 5,000 in 2016.

But the following year his loan was increased to £ 10,000.

Emma says, “I should never have borrowed more. I was off work after contracting meningitis and missed a month’s repayment.

“It was then that I felt the full strength of Amigo and my surety was harassed daily.

“We can barely afford to eat now and I’m afraid for the future. “

Citizens Advice chief Gillian Guy said: “Agreeing to guarantee a loan for someone is not a decision to be taken lightly.”

Graham Hiscott, Commercial Director of the Daily Mirror, says:

It’s one thing to tell yourself that you would help if your child, another parent or friend was going through a difficult time, it’s another to make a commitment.

Yet this is what you do with secured loans. By accepting, you’ll be on the hook if the borrower falls behind.

And that’s more than possible.

Market-leading Amigo Loans recently said 95% of loans were either up to date or less than 31 days past due. But 10% of the refunds are made by the guarantors.

The idea of ​​such loans is justifiable in some ways – helping someone who may have a sparse credit history to borrow money. Amigo says it “exists to help supply financial borrowers excluded by traditional lenders.”

But it is not cheap. Amigo charges an annual interest rate of just under 50%. So think carefully before signing up to become a guarantor.

Consider other options if necessary, but most importantly, be aware of what could happen.

  • Panorama: easy money, difficult debt? is Monday at 8:30 p.m. on BBC1.



Source link

]]>
https://joshadamsrealtor.com/fiona-phillips-investigates-the-shocking-truth-behind-high-interest-secured-loans/feed/ 0
Google Removes Payday Loan Ads From Its Search Engine https://joshadamsrealtor.com/google-removes-payday-loan-ads-from-its-search-engine/ https://joshadamsrealtor.com/google-removes-payday-loan-ads-from-its-search-engine/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/google-removes-payday-loan-ads-from-its-search-engine/ Search giant Google said on Wednesday it would remove payday loan providers from its advertising platforms, citing the potentially damaging effects on borrowers of short-term, high-interest cash loans. “Research has shown that these loans can lead to unaffordable payments and high default rates for users, so we will update our policies globally to reflect this,” […]]]>


Search giant Google said on Wednesday it would remove payday loan providers from its advertising platforms, citing the potentially damaging effects on borrowers of short-term, high-interest cash loans.

“Research has shown that these loans can lead to unaffordable payments and high default rates for users, so we will update our policies globally to reflect this,” said the head of global product policy. of Google, David Graf, in an ad posted on the company’s website. Blog.

The average payday loan borrower spends five months of the year going into debt, paying more fees than they originally received, according to research compiled by the Pew Charitable Trusts. “Our hope is that fewer people are exposed to deceptive or harmful products,” Graff said.

The policy change, which follows a similar move by Facebook, has been hailed by advocacy groups concerned about the impact of payday loans on low-income borrowers.

Payday lenders take advantage of the weaknesses of people, especially the poor and people of color. Every time someone clicks on these ads, search engines benefit as well, ”Alvaro Bedoya, executive director of the Georgetown Center on Privacy & Technology, said in a statement.

“As the world’s largest internet company and dominant search engine, Google is setting an industry standard that companies like Microsoft and Yahoo would do well to follow,” Bedoya said. According to Yahoo’s current advertising policy, search results payday loan ads “are permitted in all markets.”

Consumer advocacy group Americans for Financial Reform echoed the praise, noting that the decision “closes an important avenue of client recruitment for an industry that increasingly does business online.”

A screenshot showing payday loan sites advertised on Google. Taken May 11, 2016. Photo: International Business Times

Online lenders are increasingly under scrutiny. Last month, the Consumer Financial Protection Bureau released a study showing that overdraft fees often pile up for online payday loan borrowers. For half of the consumers in the study who experienced an overdraft fee as a result of a loan, the average charge was $ 185. Over 40 percent of those who saw overdrafts ultimately closed their accounts.

Google said it would continue to allow ads for other financial service providers, including mortgage and student loan companies, while tightening its standards for consumer loan providers. The company said it would ban ads for loans due within 60 days or with an annual interest rate (APR) of 36% or more.

Most states set usury limits between 10% and 20%, although some, including Nevada and New Hampshire, have no cap, giving online payday lenders a sanctioned operational base.

“This new policy addresses many of the long-standing concerns shared by the entire civil rights community about predatory payday loans,” said Wade Henderson, chair of the Leadership Conference on Civil and Human Rights. “These companies have long used clever advertising and aggressive marketing to trick consumers into shockingly high interest loans – often those who can least afford them.”

The policy will take effect on July 13, 2016. Troubleshooting sites will not disappear from search results, but they will no longer appear as sponsored links at the top and bottom of search pages.



Source link

]]>
https://joshadamsrealtor.com/google-removes-payday-loan-ads-from-its-search-engine/feed/ 0
Women victims of domestic and domestic violence can apply for loans for essential household items and relocate | Western lawyer https://joshadamsrealtor.com/women-victims-of-domestic-and-domestic-violence-can-apply-for-loans-for-essential-household-items-and-relocate-western-lawyer/ https://joshadamsrealtor.com/women-victims-of-domestic-and-domestic-violence-can-apply-for-loans-for-essential-household-items-and-relocate-western-lawyer/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/women-victims-of-domestic-and-domestic-violence-can-apply-for-loans-for-essential-household-items-and-relocate-western-lawyer/ news, local news, Central West Lifeline CEO Stephanie Robinson said the announcement of the federal government’s $ 14.9 million interest-free loan will help women victims of family and domestic violence in the region. The federal government on Tuesday announced the Good Shepherd Microfinance interest-free loan program to help up to 45,000 victims access financing for […]]]>


news, local news,

Central West Lifeline CEO Stephanie Robinson said the announcement of the federal government’s $ 14.9 million interest-free loan will help women victims of family and domestic violence in the region. The federal government on Tuesday announced the Good Shepherd Microfinance interest-free loan program to help up to 45,000 victims access financing for relocation, essential household items, rental obligations and debt consolidation. Ms Robinson said women can also turn to Commonwealth Bank and NAB, which run similar programs to help with domestic and family violence. “The federal government’s announcement is a good thing and any support in this area is welcome,” said Robinson. “Our statistics on domestic violence in the Center-West are very worrying, in particular Orange which has a high rate of domestic violence.” The Central West, the Wild West and Orana are among the top five regions with the highest rates of domestic violence incidents in the state. Also Read: Federal Inquiry into Freedom of Expression in Universities Useless: CSU Vice Chancellor Patients Thumbs Up for Quiet Environment at Lithgow Hospital IT’S NOT OVER YET: Strong message to MPs ahead of drought debate The NSW government and the federal government had announced a series of measures to help victims of domestic violence in recent months. The NSW government decided to grant 10 days of paid domestic violence leave to employees in the state’s public sector and also amended laws to allow victims of domestic violence to immediately break contracts of rental without any penalty. Ms Robinson said the NSW Government’s 2017-2021 early intervention and prevention strategy for domestic and family violence has started to bear fruit. “It takes time to change people’s behavior. For example, people have been slow to adjust to the ban on smoking in public places. It was unthinkable a few years ago, ”she said. “Communities should also address the issue of domestic violence rather than keeping it behind doors and making it personal. Federal Women’s Minister Kelly O’Dwyer said family and domestic violence can have a significant impact on women’s long-term economic security. “Many women never recover from the financial setback of establishing a new home, and for many more women, the enormous costs can discourage them from leaving an abusive relationship,” she said. “The interest-free loan program will provide a secure and affordable alternative to high-cost financing options, such as ‘payday loans‘ which can exacerbate women’s financial distress, and will provide the essential assistance that vulnerable women need. to take control of their lives and live in safety. ”Women beneficiaries of these loans will have access to a specialized loan assistant to help them regain control of their finances.

/images/transform/v1/crop/frm/WZXauW9i8bTNuviVjjuS7d/89b3cb1a-37b5-4e1b-bf4c-d2535ea61035.jpg/r78_56_1002_578_w1200_h678_fmax.jpg



Source link

]]>
https://joshadamsrealtor.com/women-victims-of-domestic-and-domestic-violence-can-apply-for-loans-for-essential-household-items-and-relocate-western-lawyer/feed/ 0
Beware of those piecemeal loans advertised on Instagram https://joshadamsrealtor.com/beware-of-those-piecemeal-loans-advertised-on-instagram/ https://joshadamsrealtor.com/beware-of-those-piecemeal-loans-advertised-on-instagram/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/beware-of-those-piecemeal-loans-advertised-on-instagram/ We have already warned readers of smart new credit companies like Affirm, who want to replace credit cards with on-the-spot loans integrated directly into the online shopping pages. Despite all their talk about helping consumers, these companies are little more than friendly loan sharks, renamed to offer a “premium experience”, but still dangerous and even […]]]>


Photo of Laura College

We have already warned readers of smart new credit companies like Affirm, who want to replace credit cards with on-the-spot loans integrated directly into the online shopping pages. Despite all their talk about helping consumers, these companies are little more than friendly loan sharks, renamed to offer a “premium experience”, but still dangerous and even predatory. Now on Racked, Journalist Susie Cagle takes a look at Affirm, weighing the pros and cons and assessing the claims of its leaders and spokespersons.

On the bright side, according to Cagle, Affirm evaluates its loans transparently, does not compensate its interest, and does not charge hidden fees. CEO Max Levchin says he opposes the traditional lending model, which he says “is based on customer failure.”

But as Cagle points out, Affirm’s median interest rate of 19% is higher than the median credit card rate, and retailers are using the company to build, and then aggressively advertise, the buying model of. expensive products on credit. Despite all of Affirm’s talk about responsibility and helping consumers make better choices, their third most popular purchasing category is fashion. “Clothes are really the only criticism we get. Like, oh my God, you’re funding a pair of shoes, ”Chief of Staff Ryan Metcalf told Cagle. “We had this debate internally,” he says.

It seems clear which side has won this debate. What’s responsible for pushing sneaker loans to $ 300? “I just think they are trying to code it as if they are trying to serve the underserved,” Lauren Leimbach, executive director of the nonprofit Community Financial Resources, told Cagle. Cagle’s investigation follows a Twitter thread this summer based on an Instagram ad by Affirm:

Affirm seems to make the problem worse. As Cagle says, “Affirm isn’t just about meeting demand, it’s about creating demand, encouraging buyers to buy and spend more. Affirm claims an average 75% increase in order value from all of its merchant partners. “

An Affirm offer integrated into Casper's payment process

An Affirm offer integrated into Casper’s payment process

One customer, online clothing retailer Betabrand, discovered that his Affirm customers had so much money and good credit. But even at its best, the service just makes it easy to add interest charges to a purchase. And by branding itself as a solution for clients with bad credit, Affirm appears to be striving to reach out to those poorer clients and become a smiling and transparent predatory lender.

Metcalf tells Cagle that the “credit score” is to “give you access to things you couldn’t afford in cash.” That doesn’t mean you can’t really afford it.

I spent my 20s maxing out my credit cards, taking out payday loans, and racking up over a thousand dollars in overdraft fees. And I don’t agree with Metcalf: if you can’t buy consumer goods in advance, you certainly can’t buy them on credit.

I don’t see how a product like Affirm could possibly have helped me recover from bad credit, and not just get more into debt. Making loans more transparent does not solve the whole problem. I didn’t get into debt just because the fees were hidden; I got into debt because I was given the option.

Affirm’s Loans could be the future of shopping | Withdrawn



Source link

]]>
https://joshadamsrealtor.com/beware-of-those-piecemeal-loans-advertised-on-instagram/feed/ 0
Texas Fair Lending Alliance expresses concern over overturned payday loan rule https://joshadamsrealtor.com/texas-fair-lending-alliance-expresses-concern-over-overturned-payday-loan-rule/ https://joshadamsrealtor.com/texas-fair-lending-alliance-expresses-concern-over-overturned-payday-loan-rule/#respond Tue, 09 Mar 2021 11:35:09 +0000 https://joshadamsrealtor.com/texas-fair-lending-alliance-expresses-concern-over-overturned-payday-loan-rule/ AUSTIN (Nexstar) – The Consumer Financial Protection Bureau (CFPB) is seeking to overturn a rule that would require payday lenders and lenders to verify a borrower’s ability to repay the loan. “There is some concern about not looking at the borrower’s ability to repay,” said Ann Baddour, director of the Fair Financial Services Project at […]]]>


AUSTIN (Nexstar) – The Consumer Financial Protection Bureau (CFPB) is seeking to overturn a rule that would require payday lenders and lenders to verify a borrower’s ability to repay the loan.

“There is some concern about not looking at the borrower’s ability to repay,” said Ann Baddour, director of the Fair Financial Services Project at Texas Appleseed.

The Bureau is concerned that the rule, which is expected to come into effect in August, “will reduce access to credit and competition in states that have determined that it is in the best interests of their residents to be able to use such products,” subject to the limitations of state law, ”he said in a statement posted on the agency’s website.

Baddour said this could have negative effects on Texans who borrow and said the state also doesn’t offer much protection to borrowers.

“We have some of the highest rates in the country,” she said. “Some of these loans are on average over 500% of APR. To put this in some context, a loan of $ 100 will cost you $ 500 or more to repay. ”

“Right now, statewide, we have some of the most lax regulations in the country,” she continued.

“There is no cap on the amount that can be charged on these loans, which is why we see loans at 500% APR and above and there is no limit on the amount of the loan based on the borrower’s income or any affordability standard, no limit on the number of times these loans can be refinanced and the result is that we see so many families getting trapped in this cycle of debt.

According to the Texas Fair Lending Alliance, a coalition of more than 60 organizations and individuals, from 2012 to 2017 Texans paid $ 9.2 billion in fees on their own. During this same period, more than 200,000 families lost a car due to an auto title loan. More than 40 cities in Texas have established local uniform ordinances, where payday loans, including all fees, are limited to 20 percent of the borrower’s gross monthly income. Auto title loans, including all fees, are limited to the lesser of three percent of the borrower’s gross annual income or 70 percent of the value of the vehicle. Each repayment should also help reduce the loan principal by 25%.

“Having basic fair market standards elevates the market and then creates better options,” Baddour said.

Eighteen states and the District of Columbia ban high-cost payday loans, according to the Consumer Federation of America. Several bills to promote fair market standards were introduced for consideration during this legislative session, including one that would put municipal ordinances into state law.

The public has the opportunity to send comments to the Consumer Financial Protection Bureau for 90 days on this rollback proposal.



Source link

]]>
https://joshadamsrealtor.com/texas-fair-lending-alliance-expresses-concern-over-overturned-payday-loan-rule/feed/ 0