Photography Competition – Steven Wesley Photography http://stevenwesleyphotography.com/ Mon, 20 Sep 2021 10:00:35 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://stevenwesleyphotography.com/wp-content/uploads/2021/05/cropped-icon-32x32.png Photography Competition – Steven Wesley Photography http://stevenwesleyphotography.com/ 32 32 Outrageous Facts About Payday Loans https://stevenwesleyphotography.com/outrageous-facts-about-payday-loans/ https://stevenwesleyphotography.com/outrageous-facts-about-payday-loans/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/outrageous-facts-about-payday-loans/ flickr / andrewbain The payday lending industry has come under increased scrutiny for allegedly preying on low-income borrowers and trapping them in a cycle of debt by charging exorbitant fees. The loans allow consumers to quickly get their hands on a small amount of money, which is typically around $ 375 for borrowers in the […]]]>


payday loans


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The payday lending industry has come under increased scrutiny for allegedly preying on low-income borrowers and trapping them in a cycle of debt by charging exorbitant fees.

The loans allow consumers to quickly get their hands on a small amount of money, which is typically around $ 375 for borrowers in the United States, according to Pew Charitable Trusts.

Advocates of the loans say they’re a necessity for cash-strapped families who might need a few hundred extra dollars every now and then to help pay for groceries or utility bills.

And it’s easy to qualify: All you need to get a payday loan is a driver’s license, social security card, proof of income, and a bank account number.

But the fees charged by lenders are so high – up to 574% in some states – that many borrowers cannot repay loans on time and end up taking out a second loan to pay the interest, getting caught up in a cycle. debt, according to a new report from the nonprofit Milken Institute think tank.

We’ve compiled some of the most shocking facts about the payday lending industry from the Milken Institute report below:

  • In the United States, 12 million people borrow nearly $ 50 billion annually through payday loans.

  • Rates for payday loans can be as high as 35 times those for credit card loans and 80 times the rates for mortgages and auto loans.

  • Most borrowers owe payday lenders five months a year and typically end up paying $ 800 for a $ 300 loan.

  • The estimated annual percentage rate for payday loans in the United States ranges from a low of 196% in Minnesota to a high of 574% in Mississippi and Wisconsin.

  • Borrowers with six or more loans each year make up over half of all payday income in California, and they end up paying at least $ 525 for a $ 255 loan.

  • Payday loan shops tend to cluster in areas with the highest poverty rates. The six counties in California with the most payday lender stores per 100,000 residents have an average per capita income of between $ 17,986 and $ 26,300, compared to the state average of $ 44,980. The average unemployment rate in these counties is nearly 15.8% compared to the state average of 11.8% and one in five people live in poverty, compared to 15% nationally.



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Payday lender The Cash Store hit with record penalty – Bank https://stevenwesleyphotography.com/payday-lender-the-cash-store-hit-with-record-penalty-bank/ https://stevenwesleyphotography.com/payday-lender-the-cash-store-hit-with-record-penalty-bank/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/payday-lender-the-cash-store-hit-with-record-penalty-bank/ Seven breaches of the Credit Act Among other violations, the Federal Court found that The Cash Store (TCS) sold “unnecessary” consumer credit insurance to customers, most of whom were low-income or Centrelink beneficiaries. In total, TCS violated seven different parts of the Credit Act, while Assistive Finance Australia (AFA), which funded the loans, violated six. […]]]>


Seven breaches of the Credit Act

Among other violations, the Federal Court found that The Cash Store (TCS) sold “unnecessary” consumer credit insurance to customers, most of whom were low-income or Centrelink beneficiaries.

In total, TCS violated seven different parts of the Credit Act, while Assistive Finance Australia (AFA), which funded the loans, violated six. TCS made around $ 1.3 million from selling the fake insurance.

The main accusation made by ASIC was that the loans were not suited to clients.

“This is a historic brief for the consumer credit scheme and essential reading for all credit licensees,” said Peter Kell, vice president of ASIC. “The large amount of the penalty imposed shows that ASIC and the Court take these obligations very seriously, as must all lenders, regardless of the amount of the loan.”

Eighty stores and a lot of loans

Until September 2013, TCS operated as a payday lender with all loans funded by AFA. It had about 80 stores across Australia and had taken out about 10,000 loans per month of up to $ 2,200, each for a short period (usually two weeks or less).

The fees and charges for The Cash Store – currently in liquidation – were typically around 45% of the loan amount.

CHOICE reported last year that one of Australia’s largest payday lenders, Cash Converters, posted a 38% profit increase for the third quarter of fiscal 2014 (ending March) through report for the same quarter in 2013.

Responsible lending rules

To meet their responsible lending obligations, credit providers – including payday lenders – should take the following steps:

  • obtain reasonable information from the consumer on his requirements and objectives in relation to the credit agreement;

  • take reasonable steps to verify the consumer’s financial situation;

  • assess whether the credit product is unsuitable for the consumer and proceed only if the credit product is not unsuitable; and

  • provide the consumer with a copy of the assessment upon request.

As of March 2013, payday loans up to $ 2,000 that must be repaid in 15 days or less are prohibited; fees are currently capped at 20% of the loan amount and interest at 4% per month.



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Wonga’s Amazing Big Cats Homes Triple Profits With 4,000 Pc Payday Loans https://stevenwesleyphotography.com/wongas-amazing-big-cats-homes-triple-profits-with-4000-pc-payday-loans/ https://stevenwesleyphotography.com/wongas-amazing-big-cats-homes-triple-profits-with-4000-pc-payday-loans/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/wongas-amazing-big-cats-homes-triple-profits-with-4000-pc-payday-loans/ Fishing lakes, hot tubs, tennis courts and BMWs in the drive … the amazing houses of Wonga’s big cats tripling their profits with enticing 4,000% payday loans Wonga founders Errol Damelin and Jonty Hurwitz live in amazing homes Hurwitz, 43, lives in a £ 2million house in West Sussex with a fishing lake and hot […]]]>











Fishing lakes, hot tubs, tennis courts and BMWs in the drive … the amazing houses of Wonga’s big cats tripling their profits with enticing 4,000% payday loans

  • Wonga founders Errol Damelin and Jonty Hurwitz live in amazing homes
  • Hurwitz, 43, lives in a £ 2million house in West Sussex with a fishing lake and hot tub
  • Damelin, 42, has a six-bedroom house in north London with four bathrooms
  • The chairman of one of Wonga’s biggest shareholders owns £ 6.5million in London
  • Adrian Beecroft also owns a £ 2.75million London home and Oxfordshire castle

With recent revelations that their company’s profits tripled to over £ 45million last year, it’s clearly no surprise that these men are living in luxury.

Errol Damelin and Jonty Hurwitz, founders of the Wonga payday loan company, live in a beautiful six bedroom house in North London and Five-bedroom house in West Sussex for £ 2million respectively.

Mr Hurwitz, 43, who left his post of technical director last November to invest in the sciences and the arts but still sits on the board of directors, lives in a house with its own fishing lake, bath in whirlpool and its tennis court.

Base: Jonty Hurwitz, 43, who stepped down as technical director at Wonga last November but still sits on the board, lives in a West Sussex house with its own fishing lake, hot tub and his tennis court

In 2002 Errol Damelin and his family moved into a six bedroom house they bought for £ 580,000 in North London.  It's worth more than double today

In 2002 Errol Damelin and his family moved into a six bedroom house they bought for £ 580,000 in North London. It’s worth more than double today

Managing director Mr Damelin, 42, who reportedly earned £ 1.6million last year, lives in the six-bedroom, four-bathroom house and has a BMW X5 parked in the driveway, has reported the Sun.

Wonga, which sponsors Blackpool Football Club, has grown tremendously to around £ 384million, with an astonishing representative annual percentage rate on loans of 4.214%.

Meanwhile, the chairman of Dawn Capital, one of Wonga’s biggest shareholders, is Adrian Beecroft, and he lives in a £ 6.5million house in North London. But that’s not the only amazing house he owns.

Additionally, the 65-year-old venture capitalist and Conservative Party donor owns a lavish £ 2.75million five-bedroom townhouse, also in north London, and even a castle in Oxfordshire. , reported the Sun.

Lots of money: Errol Damelin and Jonty Hurwitz (pictured) are the two founders of the payday loan company Wonga

Lots of money: Errol Damelin and Jonty Hurwitz (pictured) are the two founders of the payday loan company Wonga

Base: The headquarters of the company, which has made four million loans worth £ 1 billion, is in an impressive Georgian townhouse in an upscale central London area that borders Regent's Park.

Base: The headquarters of the company, which has made four million loans worth £ 1 billion, is in an impressive Georgian townhouse in an upscale central London area that borders Regent’s Park.

The headquarters of the company, which has made four million loans worth £ 1 billion, is in an impressive Georgian townhouse in an upscale area of ​​central London that borders Regent’s Park.

“Anyone who thinks the big profits reported by Wonga this week are a sign of a healthy UK market needs a heads up.”

Stella Creasy MP

A spokesperson for Wonga said its success was due to “a very high level of customer satisfaction and low arrears rates among the best in the industry” and that the company was making “very careful lending decisions. “.

He added that he always checks that clients have “full bank accounts, regular income and access to a range of credit providers” and that he is proud to “build a UK business success”.

But Shadow Home Secretary Stella Creasy MP told The Sun: “Anyone who thinks the big profits announced by Wonga this week are a sign of a healthy UK market needs a heads-up.”

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Urgent warning from Martin Lewis to anyone who has ever taken out a payday loan https://stevenwesleyphotography.com/urgent-warning-from-martin-lewis-to-anyone-who-has-ever-taken-out-a-payday-loan/ https://stevenwesleyphotography.com/urgent-warning-from-martin-lewis-to-anyone-who-has-ever-taken-out-a-payday-loan/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/urgent-warning-from-martin-lewis-to-anyone-who-has-ever-taken-out-a-payday-loan/ People sometimes find themselves in financial difficulty and, out of desperation, take out a payday loan as a quick fix to their problems. These payday loan companies have become popular over the past 10 years, but they are now regulated and in danger of disappearing. Wonga was the headliner of these companies but collapsed into […]]]>


People sometimes find themselves in financial difficulty and, out of desperation, take out a payday loan as a quick fix to their problems.

These payday loan companies have become popular over the past 10 years, but they are now regulated and in danger of disappearing.

Wonga was the headliner of these companies but collapsed into administration in 2018.

Similar companies, including Juno Loans and Wage Day Advance, have also disappeared.

Money saving expert Martin Lewis explained in his weekly newsletter that anyone who has taken out a loan from a payday lender may have the right to get money back. He said: “These irresponsible companies have fallen under the weight of allegations of unaffordable gouging and price caps from the regulator.”

But that does mean that if you or someone you know has taken out a loan, you have very little time left to see if you owe cash back because of questionable practices, the Mirror reports.

“If you’ve been sold poorly and a business is solvent, you get the full amount back, but if it goes bankrupt, you’re just one of the creditors and you’re lucky to get a few cents per pound. So hurry up, ”Martin explained.



People with money problems may be owed money from a payday lender

You have to act fast

The first thing payday loan customers need to do is determine if they can claim it. The good news is that a lot of people can.

“Lenders should look at your finances to make sure you can pay the loan and the fees. If, as was often the case, it was not done correctly and you should not have received the money. , or if the costs or the repayment schedule weren’t clear, you were sold badly, ”Martin explained.

And the payments can run into the thousands – because people can get all of their interest, fees, and charges as well as 8% per annum interest on all money owed to you.

Money Saving Expert has a checklist here where you can see if you qualify.

It’s also important to point out that you don’t need a claims management company to get your money back – with free tools like those offered by Resolver.co.uk available to walk you through the process.

The best news is, if you fend for yourself, you don’t have to pay a claims handling company fee that can eat up more than a quarter of your payment.

And what about people who had a loan from a business, like Wonga, which has since gone out of business?

Well, all is not entirely lost.

“If a credit company goes bankrupt, you join a long line of other creditors,” explained James Walker of the free customer complaints service Resolver.co.uk.

In Wonga’s case, it’s Grant Thornton – who has now opened a Wonga claims portal.

But you don’t have quite the same rights as if the business is still in operation.

“If you don’t like the response, there’s not much you can do,” Walker said.



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The latest breaking news will go straight to your news feed, including updates from the police, ambulance and fire department. We’ll also bring you updates from our courts and advice, along with some lighter long reads.

We also post your photos and videos, so send us a message with your stories.

Like the My London Facebook page here.

You can also follow us on Twitter here and Instagram here.





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Top Payday loans Online: Fast Low-Credit Loans for Bad Credit with Guaranteed same-day approval https://stevenwesleyphotography.com/top-payday-loans-online-fast-low-credit-loans-for-bad-credit-with-guaranteed-same-day-approval/ https://stevenwesleyphotography.com/top-payday-loans-online-fast-low-credit-loans-for-bad-credit-with-guaranteed-same-day-approval/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/loans-over-200-interest-are-ineligible/ Top Payday loans Online: Fast Low-Credit Loans for Bad Credit with Guaranteed same-day approvalIf bad credit is involved, the process of applying for and getting approval for a short-term or emergency loan may be a challenge. Some lenders may not give you money if there is an unproven previous history of not repaying the debt on time or financially in bad standing. People are seeking financial aid more than […]]]> Top Payday loans Online: Fast Low-Credit Loans for Bad Credit with Guaranteed same-day approval

If bad credit is involved, the process of applying for and getting approval for a short-term or emergency loan may be a challenge. Some lenders may not give you money if there is an unproven previous history of not repaying the debt on time or financially in bad standing.

People are seeking financial aid more than they have ever had before because of the current pandemic as well as other global problems. This is why new loan lending companies like https://gadcapital.com/ have been created to take advantage of the fast rise. These loans can be lifesaving for numerous people. Due to the popularity of instant loans fraudsters have come on the scene and started to defraud consumers.

We will show you how to identify an payday loan online and what you need to think about when applying for a quick loan. Let’s take a look!

How do you choose the Most Effective Payday Loans?

Your credit score is an essential aspect of your financial situation. Poor credit, no matter if you are happy with the idea or not can have significant impact on your life. Additionally, financial difficulties can strike at the time you least anticipate it, and if you don’t plan beforehand, you could be in deep difficulties. This is where a short loan that can be approved on the same day could aid.

The most effective online payday loans for those with bad credit scores must offer:

  1. A Good Name: Find lenders who have been in the loan lending industry for a long period of time and have a strong reputation, and provide reliable service. The lender must have positive customer reviews and should be accredited by BBB.
  2. Credit Flexibility Its goal is give loans to people who have bad credit. So, you should examine every lender to determine whether they are willing to lend to those with poor credit histories.
  3. Faster Funding: The minute counts, especially when you need emergency cash. You should look for lenders that are able to provide loans as fast as a day.
  4. Transparency As you’re sharing sensitive personal information These lending institutions must be transparent and open to the public.

What are the essential factors to consider when obtaining instant loans for bad credit?

When deciding on an instant bad credit loan, several aspects must be taken into account. Keep these considerations in your mind:

1. The loan amount you’ll require

Knowing how much money you will need is the first step to deciding on the right loan. Payday loans are available in a range of $200-$5000 and even more.

If you’re looking for under $200, it’s best to save a few dollars or seek out a family member to help. It won’t cost you interest charges or face the hassle of requesting the loan in this manner. Choose payday loans if the amount you need is greater than $200.

2. Repayment Method Repayment

Different lenders have different rules in regards to when and how borrowed funds are returned. Certain businesses offer options of automatic debits from your account every month. This could result in a reduction in rate of interest in certain circumstances.

After 30 days, you’ll likely have to start paying back the loan with monthly payments. The majority of the payment terms span between five and six years. The monthly installment as well as the interest rate are determined by the size in the amount of money you obtained.

3. The Interest Rate

The rate of interest is an important element to be considered when applying for an loan. This is determined by a variety of aspects, such as the amount of the loan, scores on credit, and the duration of payback. Some companies offer prices as low as 4.4%, and up to 30 percent.

The rates of interest for different loans as each will require different data. Once the loan is approved the rate will be steady throughout the loan duration.

4. Time of Payment

If you are applying an advance loan you can choose choosing how you wish to pay it back, depending on your cash flow and the income. Certain lenders allow autopay as an option, which reduces the interest rate by 0.5 percent.

Some loan holder prefer to keep their monthly payments as low as they can. This is why they prefer to pay off the loans over time, or over years. On the other hand some prefer to repay the loan as fast as they can and get an interest rate that is low, however a substantial monthly sum.

If you decide to go with the more lengthy route and you decide to go with the longer route, you can expect to pay a substantial interest rate for your loan. This may not appear to be much considering that each month’s installments seem low and the payback time is lengthy. In the long period, you could be paying more to repay the loan.

5. APR (Annual Percentage Rate)

Annual percentage rates are the same as the interest rate however, it is also a part of the extra costs that lenders charge for prepayments, like the cost of a prepayment or an origination charge. While many credit institutions don’t charge a sign-up or orientation fee but certain ones charge one.

Origination fees are a single fee that is deducted from the loan to pay for the lender’s processing and administration costs. The fees typically range from between 1% and 5% and the possibility of a flat rate being occasionally applied.

6. Penalties and Fees

The world doesn’t always go as planned You may be late or make a late payment. This is why it’s crucial to pick the lender that offers the flexibility to make payments.

If you’re late on a due date and you are late, you’ll be asked be charged a charge. Some lenders will offer grace periods to their clients, other lenders are just looking for an opportunity to earn more cash. If you’re late on payments, call the lender and inform them immediately so that you don’t incur a huge cost.

Conclusion

It’s not impossible to get a loan even if you commit financial errors and have a poor credit score. Payday loans are an easy way to get loans, especially for those who have bad credit. Many have experienced quick bad credit loans to assist those in overcoming financial challenges as well as you.

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More Canadians Use High Interest Car Title Loans During Recession – Business News https://stevenwesleyphotography.com/more-canadians-use-high-interest-car-title-loans-during-recession-business-news/ https://stevenwesleyphotography.com/more-canadians-use-high-interest-car-title-loans-during-recession-business-news/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/more-canadians-use-high-interest-car-title-loans-during-recession-business-news/ Photo: The Canadian Press If internet search trends are a window into the minds of consumers, a recent report suggests that a growing number of Canadians are considering unwise financial options, observers say. Amid a resurgence of pandemic-related interest in personal finance information, the number of searches involving auto title lending nearly tripled in Canada […]]]>


If internet search trends are a window into the minds of consumers, a recent report suggests that a growing number of Canadians are considering unwise financial options, observers say.

Amid a resurgence of pandemic-related interest in personal finance information, the number of searches involving auto title lending nearly tripled in Canada from March through September this year to 16,900 per month, from about 5,900 searches per month at the same time. times a year earlier, according to SEMrush.

The Boston-based marketing firm that studies internet search trends said Canadian searches for payday loans, meanwhile, fell 43 percent to 22,900 from 39,700 in the same period. , which has been marked by millions of people who have lost their jobs as non-essential stores and industries have been forced to shut down in order to contain the spread of the COVID-19 virus.

“The most surprising thing we have noticed is an increase in demand for auto title loan research which is, I think, quite unique for Canada compared to the United States, where we haven’t seen this guy. increase, ”said Eugene Levin, chief strategy officer for SEMrush, in an interview.

He said he was unsure why searches in the United States had not also increased, but suggested that a possible explanation for the increase in searches for auto title loans and the corresponding decline in loans on auto securities. salary in Canada could be that potential applicants have a car but no job.

“A lot of people have cars,” Levin said. “The terms of these loans are better than payday loans, the interest rates are lower, so they are more attractive. At the same time, you don’t need a job to get an auto title loan like some payday loans do. “

An auto title loan works on the same basis as a home equity loan. They are billed as short-term business, secured by a lien on the vehicle. In the event of non-payment or default by the borrower, the lender can repossess the vehicle in order to recover his money.

Levin said statistics from SEMrush do not indicate how many researchers have actually signed up for a car title loan.

An online search for “car title loan” produces dozens of results.

Most providers offer a wide range of loan levels – one promises $ 1,000 to $ 50,000 – and many say their interest rates are the “lowest in the industry,” from “10 to 49%. “.

The Canadian Press contacted several auto securities lending companies over the story, but no representative was available.

People who are desperate for money will always find someone who is trying to take advantage of their situation, said Brian Betz, advisor for Money Mentors in Calgary, adding that car title loans are just one of many. fast money online programs that they could choose from.

“The increase in securities lending is probably more about those who have no assets. Their cars are for all intents and purposes all they have,” he said.

“Usually when you get a title loan it’s not for $ 300 to $ 500. You get a few thousand dollars on that vehicle and at their interest rates it can be very difficult to pay off. “



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Government cracked down on predatory loans https://stevenwesleyphotography.com/government-cracked-down-on-predatory-loans/ https://stevenwesleyphotography.com/government-cracked-down-on-predatory-loans/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/government-cracked-down-on-predatory-loans/ flickr / andrewbain The Consumer Financial Protection Bureau on Thursday proposed new rules that represent the federal government’s first attempt to regulate payday lending, an industry that provides quick and small loans to those strapped for financial resources with interest rates as high as 400% or more. Ssome states have tried to crack down on […]]]>


payday loans


flickr / andrewbain



The Consumer Financial Protection Bureau on Thursday proposed new rules that represent the federal government’s first attempt to regulate payday lending, an industry that provides quick and small loans to those strapped for financial resources with interest rates as high as 400% or more.

Ssome states have tried to crack down on the astronomical interest rates and fees that payday lenders impose on their generally low-income borrowers, but no national action has been taken to limit their activity to date.

New CFPB rules aim to address the quicksand-like ‘debt trap’ many people who borrow from payday lenders find themselves in – most people who use payday end up rolling them over when they mature or by borrowing again soon after their initial loan. All the while, interest and fees are mounting rapidly.

“Too many borrowers looking for a short-term cash flow solution are struggling with loans they cannot afford and are going into debt over the long term,” said CFPB Director Richard Cordray, in a press release. “It’s a bit like getting in a cab just to cross town and get stuck on a trip through the ruinous country.”

According to Washington Post, a rule proposed by the CFPB would require payday lenders “a cooling off period after three consecutive payday loans“. As the To post Note, CFPB data shows that 45% of payday clients successively borrow four or more loans, and 15% end up borrowing 10 or more.

    Protesters from


Getty


The second rule requires that payday lenders consider a borrower’s actual ability to repay the loans they end up receiving. This means looking at the income and credit of customers and limiting loans to those who can afford the loan. There are major exceptions to this, including if the loan is $ 500 or less. This is a relatively high cut-off rate, given that low-income borrowers can often quickly get trapped in four-figure debt after taking out a few loans worth a few hundred dollars.

The To post reports that the rules will be overhauled for months to come and face potential legal hurdles before they come into force.

The payday lending industry is agitated over the new rules, saying limiting its ability to provide loans will cripple its business model. But if your business model is based on trafficking the most desperate members of society for money – payday lenders collect 75% of their loan fees from customers who have more than 10 loans per year, according to the Center for Responsible Lending. This is probably something that needs to be watched closely.



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States struggle to regulate the vicious circle of payday loans https://stevenwesleyphotography.com/states-struggle-to-regulate-the-vicious-circle-of-payday-loans/ https://stevenwesleyphotography.com/states-struggle-to-regulate-the-vicious-circle-of-payday-loans/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/states-struggle-to-regulate-the-vicious-circle-of-payday-loans/ YouTube / Last Week Tonight with John Oliver New York State prosecutors indicted three executives for allegedly greatly exceeding state limits on interest rates on short-term loans, through often poorly regulated payday loans, reports the New York Times. The rare case highlights the risk that customers may face with payday loans which can lead them […]]]>


john oliver payday loan


YouTube / Last Week Tonight with John Oliver


New York State prosecutors indicted three executives for allegedly greatly exceeding state limits on interest rates on short-term loans, through often poorly regulated payday loans, reports the New York Times.

The rare case highlights the risk that customers may face with payday loans which can lead them to serious financial hardship. It also sheds light on a multibillion-dollar industry that has rarely been the subject of criminal action, the Times points out.

According to the Consumer Financial Protection Bureau, payday loans typically cost less than $ 500 and are due on the borrower’s next payday. Loan financing fees can range from $ 10 to $ 30 per $ 100 borrowed, with a typical two-week loan amounting to an annual percentage rate (APR) of nearly 400%, compared to 12% to 30%. for credit cards.

Carey Vaughn Brown is said to have owned a dozen companies in the US and overseas in an attempt to dodge US authorities while controlling all parts of an abusive lending process, including granting interest rate loans exorbitant interest between 350% and 650% and collecting automatic bank payments from borrowers. accounts.

Business Insider contacted Brown’s attorney for the case, Paul Shechtman, for a comment and will update if we hear back. He told the Times his client “has acted in good faith and is eager to show his innocence.

Although New York City has laws capping interest rates at 25%, these fees are rare as lenders continue to get away with illegally extending loans at much higher rates. In total, 18 states and the District of Columbia are banning excessively high-cost payday loans through various measures, according to the Consumer Federation of America. But 32 states still allow payday loans at triple-digit interest rates, some without even setting a rate cap.

The biggest problem for payday loan clients is what happens when they miss payments, leaving them vulnerable to fees they might not be aware of and huge interest levels like John Oliver As pointed out in a segment of his talk show “Last Week Tonight.” Over 75% of the payday lending industry’s lending volume is generated by borrowers who are forced to borrow again before their next pay period, Oliver reported.

A payday loan company training manual features a pie chart that clearly shows a vicious cycle that customers may face. “A real Ace Cash training manual for employees features a diagram that starts with the client applying for an ACE loan, goes through them spending the money from that loan, being unable to repay it, and then being forced to apply. an ACE loan. again, ”John Oliver said on his show.

We’ve reached out to ACE Loan to give them the opportunity to comment on the Oliver segment, and we’ll update this post if we have any news.

The problem persists because payday loan companies are finding ways to get around the law in many states through minor changes. For example, businesses in Ohio have registered as mortgage lenders to evade legislation targeting businesses licensed as short-term lenders – while maintaining the same practices. “For regulators, it’s like playing legislative pranks,” Oliver said. “Just when you think you’ve run over them, they appear elsewhere with a completely different outfit.”

This vicious cycle impacted poet and author Joylynn M. Jossel of Columbus, Ohio, after borrowing a few hundred dollars but was unable to pay it back two weeks later, DailyFinance reported. As she could not repay her debt on time, she fell prey to excessive interest rates.

Jossel then borrowed from another payday lender to pay off her first loan, creating a slippery slope that forced her to owe money to four different lenders. When she paid off her loans, she immediately had to take out another loan to pay her bills. Eventually, she was paying $ 1,800 for these loans every month.

This led to harassment from collection agencies. “They tell you everything to get you in and pay the check that hasn’t cleared,” Jossel told Daily Finance. “They will say to you, ‘You are a criminal, you wrote a bad check. It is against the law, it is a crime, you are going to jail.’ They call all your references and your work. It’s horrible. I felt so suffocated. I felt like I was in this black hole that I just couldn’t get out of. “

Jossel escaped the cycle after receiving money from an unrelated civil lawsuit. “I have never, and I mean never, thought twice about visiting a payday loan center in my life,” she said.


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CFPB does not regulate payday loans, it abolishes them https://stevenwesleyphotography.com/cfpb-does-not-regulate-payday-loans-it-abolishes-them/ https://stevenwesleyphotography.com/cfpb-does-not-regulate-payday-loans-it-abolishes-them/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/cfpb-does-not-regulate-payday-loans-it-abolishes-them/ This is not quite what the Bureau of Consumer Financial Protection says, of course, that it intends to abolish payday loans. But that is the practical effect of the new regulations that they intend to publish. It is not immediately obvious that this is a good idea as pointed out by the Federal Reserve. People […]]]>


This is not quite what the Bureau of Consumer Financial Protection says, of course, that it intends to abolish payday loans. But that is the practical effect of the new regulations that they intend to publish. It is not immediately obvious that this is a good idea as pointed out by the Federal Reserve. People use payday loans because they perceive payday loans to be valuable to them. Why regulation should be used to prevent people from doing what they want, as long as it doesn’t harm others, is one of those things that no one really explains. But since Senator Elizabeth Warren and others seem to think that people shouldn’t borrow small amounts of money for short periods of time, it seems like people won’t be able to borrow small amounts of money for short periods of time.

The news is that they publish regulations:

The Obama administration will announce on Thursday the first step the federal government has taken to regulate low-cost, high-interest “payday loans”, a $ 38.5 billion market currently left to states.

The crackdown on the payday industry – largely storefront lenders extending credit to 12 million low-income paycheck households – follows a series of actions by President Barack Obama and his aides to cement a shift in the balance of power between consumers and financial institutions during their last year in office.

All of this has to be done by regulation, not by properly considering the issue and drafting a law about it of course:

Under guidelines from the Consumer Financial Protection Bureau – the watchdog agency created as a result of the 2010 banking legislation – lenders will in many cases be required to verify their clients’ incomes and confirm that they can afford to repay the money they borrow. The number of times people could roll over their loans into newer, more expensive loans would be reduced.

The new guidelines do not need congressional or other approval to go into effect, which could happen as early as next year.

The Federal Reserve had something to say on this point:

With the exception of the ten to twelve million people who use them every year, just about everyone hates payday loans. Their detractors are many law professors, consumer advocates, clergy, journalists, policy makers and even the President! But is all the enmity justified? We show that many elements of the criticism of payday loans – their “ineligible” and “spiraling” fees and their “targeting” of minorities – do not stand up to scrutiny and the weight of evidence. Having given up on these bad reasons to oppose payday lenders, we focus on one possible good reason: the tendency of some borrowers to renew their loans repeatedly. The key question here is whether roll-over borrowers are consistently overly optimistic about how quickly they will repay their loan. After reviewing the limited and mixed evidence on this point, we conclude that more research into the causes and consequences of refinancing should be done before any comprehensive payday credit reform.

People who take out payday loans do so because the payday loans benefit those people. Why should they be prevented from doing so? Of course, the CFPB is not saying that it is going to stop it: it is simply saying that there will be regulations. Who can be found here.

And here is the part that tells me that they ban, not just regulate, payday loans.

“The very economics of the payday loan business model depend on a substantial percentage of borrowers unable to repay the loan and borrow over and over again at high interest rates,” said Richard Cordray, director of the consumer agency.

The economy of a business is what makes a business run. Destroy this economy and you destroy this business. And they’re really quite clear in their mind that the economy here depends on re-lending over and over again. So what are these “regulations” then? They have to ban re-lending over and over again.

By their own analysis, they kill the economy of the company: and so they kill the company. As the Federal Reserve points out:

Even though payday loan fees seem competitive, many reformers have called for price caps. The Center for Responsible Lending (CRL), a nonprofit created by a credit union and a staunch enemy of payday lending, has recommended capping annual rates at 36% “to trigger the (debt) trap” “. The CRL is technically correct, but only because a 36% cap completely eliminates payday loans. If payday lenders make normal profits when they charge $ 15 per $ 100 every two weeks, as the evidence suggests, they must surely be losing money at $ 1.38 per $ 100 (equivalent to an APR of 36%.) In fact, Pew Charitable Trusts (p. 20) notes that storefront payday lenders “aren’t found” in states with a 36% cap, and researchers view a 36% cap as a limit. outright ban. With this in mind, the “36 percent” might want to reconsider their position, unless of course their goal is to eliminate payday loans altogether.

Or, as you could say, kill the economy of a business and you kill that business.

The sad part is that there is actually no solution. Publicly traded payday lenders do not make better returns on their capital (the useful measure of “profit” here) than other loan companies. So, in fact, they don’t charge more than the odds for their loans. Of course, these interest rates seem expensive as an APR, but there is a hard truth that needs to be recognized here. Short-term loans of small amounts of money are expensive, so small, short-term loans will be expensive. Goodwill found out some time ago while running them as a nonprofit business:

But alternative payday loans have also drawn criticism from some consumer advocates, who say the programs are too similar to for-profit payday loans, especially when they ask for the principal to be repaid in two weeks. At GoodMoney, for example, borrowers pay $ 9.90 for every $ 100 they borrow, which translates to an annual rate of 252%.

The reason is that there are simply overhead costs associated with granting a loan. Someone somewhere has to look at the documents and make a decision. This human time must be paid for. The cost of this human time will be a smaller portion of a $ 5,000 loan than a $ 100 loan. So, expressed as an interest rate, the cost will be higher for the smaller loan. Given this basic economy, that means making loans cheaper means we should do less analysis of who should get a loan. The CFPB has decided to insist on more analysis: making the loans more expensive to issue. They really don’t help things much there: Unless, as the Fed points out about usury rates, their goal is to shut down the business altogether.

And that is, in my opinion, what they do. The CFPB says the heart of the company’s economy is repeat charges and renewals. They are going to ban this: and so they gut the economy of the company. They are not trying to regulate here, they are trying to ban payday loans.



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Study Finds Payday Lenders Charge 300% Interest (And Yes, It’s Legal) https://stevenwesleyphotography.com/study-finds-payday-lenders-charge-300-interest-and-yes-its-legal/ https://stevenwesleyphotography.com/study-finds-payday-lenders-charge-300-interest-and-yes-its-legal/#respond Tue, 09 Mar 2021 11:35:01 +0000 https://stevenwesleyphotography.com/study-finds-payday-lenders-charge-300-interest-and-yes-its-legal/ What is the correct amount of interest to charge for a short term loan? Someone is unlikely to say 300%. Still, it’s a likely outcome if the move towards installment loans among payday loans continues unchecked, according to a review of the payday loan market by The Pew Charitable Trusts. Photographer: Gary Tramontina / Bloomberg […]]]>


What is the correct amount of interest to charge for a short term loan? Someone is unlikely to say 300%. Still, it’s a likely outcome if the move towards installment loans among payday loans continues unchecked, according to a review of the payday loan market by The Pew Charitable Trusts.

In a report released yesterday, Pew found that 13 of the 29 states where payday lenders and auto title lenders operate only issue single payment loans typically due in two to four weeks, but the remaining 26 have started to grant installment loans over longer periods with high annual percentage rates between 200% and 600%.

Without any additional limits or restrictions, this should continue, says Nick Bourke, director of the Pew Small Dollar Lending Project. Some states have attempted to reform payday lenders, such as Ohio, which regulated the cost of payday loans to a maximum interest rate of 28% in 2008. where they could make a higher profit.

“Now we see that the prices have gone up,” Bourke said, pointing to interest rates of 275% to 360%. “Loans are not pretty.

Frankly, none of these loans look very nice. And that’s the problem. The payday loan market is often the loan of last resort for Americans who do not have better access to credit. After all, no one would choose to borrow $ 500 and pay off a total of $ 1,200 if they had more reasonable interest rate options. Yet, as I wrote in June, banks and credit unions that could provide short-term loans at a fraction of the cost are reluctant to go into the business without clear direction from the Consumer Finance Protection Bureau.

The CFPB draft rules released in June do not clarify the affairs of banks and credit unions, as Bourke told me at the time. It would seem like a logical and natural solution for banks and credit unions to offer some type of short term loan given that by definition payday borrowers must already have a bank account (payday lenders need direct access to an account for immediate payment). The borrower earns around $ 30,000 per year, or $ 15 an hour, but may struggle to pay bills month to month.

Pew’s research in this area shows that in theory, installment loans would help borrowers by spreading the payment over more time, rather than demanding the balance owed over the typical two-week payday loan term. But without any guidelines or regulatory limits, installment loans from payday lenders often require too much monthly payment of $ 200 or more, double what Pew’s research shows borrowers say they can afford. Payday lenders also offer refinances, which usually incur additional fees and will extend the term of the loan.

What is a reasonable solution? Bourke would like to see guarantees that require affordable payments of 5% of the borrower’s salary, limiting charges to interest charges, rather than also allowing origination fees which can encourage loan reversals, limiting the duration. excessive loan terms – two weeks is too short, but one year is too long and the uncompetitive rate cap – 300% is far too high.

Without such limits, “they can charge any fee, they can set any monthly payment,” Bourke says. “The lender gets virtually unlimited access to the borrower’s account or to the title of the vehicle.”



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