Do you need cash right now, but are worried that you might lose your job in the next two weeks? Guarantees for customers who lose their jobs have worked for Hyundai, Ford, GM, and Sears, so now the practice has expanded to the payday loan industry.
Lose Your Job? Don't Worry, Our Exorbitant Payday Loan Fees Are On Us
By August 13, 2009
Wave Of Fake Debt Collectors Hints At Possible Data Breach
By August 4, 2009
The Better Business Bureau has released a warning to be aware of scammers calling to threaten people with arrest “within the hour” for defaulting on payday loans. What makes them stand out from normal debt collecting scammers is these callers have huge amounts of personal info on their victims, including Social Security and drivers license numbers; old bank account numbers; names of employers, relatives, and friends; and home addresses.
NY AG: Banks Paid Bonuses That Were Substantially Greater Than The Banks' Net Income
By July 31, 2009
New York Attorney General Andrew Cuomo’s report on the bonus structures of the banking industry is out and — oh my— it’s damning. The AG says that 3 banks, Goldman Sachs, Morgan Stanley, and JP. Morgan Chase, paid out bonuses that ” were substantially greater than the banks’ net income.”
Study Shows People Take Out Loans At 400% Even When They Do Know Better
By July 24, 2009
Why would you ever take out a loan at 400% interest? Because you’re absolutely desperate, or because you have no idea what 400% interest actually means. Well, many people do it every two weeks. It’s called a payday loan, and Slate has an article discussing the findings of a recent study on these “storefront loan sharks”.
Most Payday Loans Are To Repay Other Payday Loans
By July 14, 2009
Listen to the payday loan industry and their apologists and they’ll try to tell you that their customers are savvy and just need of a break to tide them over. But a new survey (PDF) shows that most payday loans are to repay other payday loans. Of the 80% of borrowers who take out multiple payday loans in a year:
Recap: Ben & Meg Interview Obama Administration On Credit Card Reform
By May 22, 2009
Here, catch all of our interview with Austan Goolsbee breaking down why the credit card reform act was needed. If you missed any of the clips, here’s is the four-part series in its entirety…
Consumerist Interviews Goolsbee On Credit Card Reform: Part 2 of 4
By May 18, 2009
In the 2nd of our 4-part interview series with President Obama’s Senior Economic Adviser, Austan Goolsbee, on credit card reform, we ask, what about the kids? Specifically, what is this bill going to do about those guys giving away shirts on campus in exchange for signing up for credit cards? Because these seems a really great service for college students, who, as we know, frequently go shirtless. Also, how one side of the debate on credit cards is essentially arguing that if you didn’t want to get carjacked you should have taken the bus… because an honest business model and a profitable one needn’t be mutually exclusive.
Recession Scenes At Wal-Mart: Beef, Peanut Butter, Toilet Seats
By May 6, 2009
Wal-Mart’s management is watching their customers during the recession. What have they learned? More shoppers now make lists, instead of buying on impulse. Sales of frozen vegetables are up; sales of Angus beef are down. And mysteriously, $5 white toilet seats are a hot item near Denver.
It's Tough Being The Only Popeye's In Minnesota
By April 30, 2009
What happens when you mix a chicken promotion, a national ad buy, and a franchisee not taking part in the promotion? You get a lot of hungry and annoyed people. And, last Thursday in Minneapolis, you have to call the police.
Stephen Colbert Supports Payday Lending, So You Probably Should Too
By April 17, 2009
Chicago Democrat Luis Gutierrez introduced a bill last month that supposedly reforms out of control payday lending, where interest rates can exceed 300%, but actually gives payday lenders the freedom to charge annual interest rates that can exceed, um, 300%. It doesn’t sound like much of a reform, and in fact Gutierrez has been heavily funded by the payday lending lobby. But luckily for you and me, Stephen Colbert explains why this is all a good thing.
House Preparing To Legalize Payday Loans With 391% APRs
By April 5, 2009
A House subcommittee wants to legalize payday loans with interest rates of up to 391%. Lobbyists from the payday industry bought Congress’ support by showering influential members, including Chairman Luiz Gutierrez, with campaign cash. The Congressman is now playing good cop, bad cop with the payday industry, which is pretending to oppose his generous gift of a bill.
National Usury Limit Could Reduce Number Of People Paying Debt Until They Die
By March 11, 2009
For about 30 years, there has been effectively no limit on the interest rates lenders can charge. This means some loans—especially payday loans, tax refund anticipation loans, overdraft protection loans, and car title loans—can have effective interest rates as high as 3,500%.
Trouble Saving Money? Harness Robots!
By February 16, 2009
Sometimes when people have trouble saving at least 10% of their income on a regular basis, it’s because it hurts too much. After you pay the bills, set aside money for groceries, booze and guns, it seems you don’t have enough left over to save with. So, what you can do is exploit “out of sight, out of mind,”
12 Confessions Of A U.S. Bank CSR
By January 13, 2009
A customer service rep (CSR) for U.S. Bank’s 24-hour banking hotline has stepped forward from the shadows to reveal 12 tips that can save customers money and time. Insider tips on how to get fees refunded, how “available balance” is a lie, and why you should demand the Portland call center when you have a fraud problem, inside…
Bad FICO? Here's Three Other Credit Scores That Can Help
By December 7, 2008
FICO score isn’t the only credit score game in town. That’s good news for people who have low scores thanks to being an immigrant, divorcee, or don’t have the means to acquire the credit in the first place. It’s one of those quirks of the system. To get credit, you have to have a credit history. To get a credit history, you need to be able to get credit. Thusly, some people find themselves a bit stuck. To meet the needs of these these “thin credit file borrowers”, some alternatives to the standard FICO score are out there. Let’s look at three.
Woman Loses $400,000 To Nigerian Email Scam
By November 14, 2008
Why did this woman, a reverend and a nurse, give over $400,000 to Nigerian email scammers? It started with just $100. The emails told her a long-lost relative with the same last name had $20.5 million caught up in the banks of Nigeria. Janella Spears just had to help with a few processing fees…
Ohio Continues To Punch Pay Day Lenders In The Face
By November 13, 2008
Check ‘N Go, a pay day lender, is closing 36 of its 71 stores in Ohio after voters failed to repeal a law that stopped them from charging asinine interest rates.
Pro-Consumer Regulation Needs Real Teeth So You Can Sue The Jerks
By November 3, 2008
If the recent economic meltdown has a bright spot, it is the possibility that smart regulation may return. There will always be those who will cheat if they can, putting both consumers and the market at risk. It cannot function properly without regulation to prevent cheating and ensure consumers are getting a fair deal. But without a private right of action and attorney fees, consumer protection regulations are nearly worthless. A “private right of action” means…
