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.
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.
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”.
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:
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.
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.
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.
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.
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.
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%.
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,”
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…
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.
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…
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.
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…