Cruise Ship Adventures – Infos Voyage http://infos-voyage.com/ Mon, 13 Sep 2021 06:57:14 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://infos-voyage.com/wp-content/uploads/2021/09/icon-28-150x150.png Cruise Ship Adventures – Infos Voyage http://infos-voyage.com/ 32 32 Parents forced into payday loans to fund treatment of baby girl’s deformed head after NHS refused to help https://infos-voyage.com/parents-forced-into-payday-loans-to-fund-treatment-of-baby-girls-deformed-head-after-nhs-refused-to-help/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/parents-forced-into-payday-loans-to-fund-treatment-of-baby-girls-deformed-head-after-nhs-refused-to-help/ Parents forced into payday loans to fund treatment of baby girl’s deformed head after NHS refused to help Molly Askham had “flat head syndrome” and her skull looked misshapen She needed a specially designed £ 2,000 helmet to reshape her head The NHS would not fund the treatment because it deemed it ‘cosmetic’ Parents borrowed […]]]>


Parents forced into payday loans to fund treatment of baby girl’s deformed head after NHS refused to help

  • Molly Askham had “flat head syndrome” and her skull looked misshapen
  • She needed a specially designed £ 2,000 helmet to reshape her head
  • The NHS would not fund the treatment because it deemed it ‘cosmetic’
  • Parents borrowed £ 400 in high interest loans to pay for private treatment

When Molly Askham was only ten weeks old, her parents noticed that one side of her head was much flatter than the other.

Doctors diagnosed her with a severe deformity of the skull called plagiocephaly or ‘flat head syndrome’ – but told Michelle and Peter Askham that treatment was not available on the NHS.

Eager to improve their granddaughter, Mr. and Mrs. Askham were forced to take out a payday loan to finance private care.

Molly Askham (pictured with her mother, Michelle) developed ‘flat head syndrome’ as a newborn baby, which means her skull has become deformed

Plagiocephaly affects the soft skulls of newborns and, in Molly’s case, was so extreme that an ear seemed to have moved to the back of her head.

Doctors told Ms Askham, 27, and her 32-year-old husband the problem should cure itself – but instead it got worse.

Molly's condition, which began to appear when she was ten weeks old, was so extreme that an ear seemed to have moved to the back of her head.

Molly’s condition was so extreme that an ear seemed to have moved to the back of her head

The couple contacted a private clinic that uses a helmet specially designed to reshape the head, but the treatment cost £ 2,000 and a deposit of £ 500 was required before they could begin.

With no savings to fall back on, the couple searched the Internet for lenders.

They took out a high interest £ 200 ‘payday loan’ and another expensive £ 200 ‘home loan’.

The family organized fundraisers to get the rest of the money, and eventually Molly received her helmet.

It works by keeping the normal side of the head in position while providing “space” for the flattened side to expand.

After wearing her 23 hours a day for four months, her head has returned to normal shape – but her parents are still in debt.

Ms Askham, whose husband has a low-paying job in a welding company, said they regularly pay the home lender off and had to borrow money from her parents to pay off the other cash loan, which had already doubled.

She needed a specially designed £ 2,000 helmet to reshape her head, but the NHS would not pay for the treatment as they saw it as 'cosmetic' and doctors believed it would correct itself

She needed a specially designed £ 2,000 helmet to reshape her head, but the NHS would not pay for the treatment as they saw it as ‘cosmetic’ and doctors believed it would correct itself

Molly askham
Molly askham

Molly’s worried parents had to turn to payday and home loans to fund her treatment and after she wore the helmet for just 17 weeks, she had recovered enough that she no longer needed them.

What is the syndrome

The mother-of-two said she was ‘shocked and angry’ to find that treatment for such a severe form of plagiocephaly was not available on the NHS because it was considered ‘cosmetic’ – even though surgery breast augmentation and tattoo removals were sometimes provided.

Ms Askham, from Leeds, said: ‘Funding should be available for a distortion as serious as this.

“It’s horrible to think your child is deformed, but it is.

“Her ear was not where it was supposed to be and her nose was moving as well.”

These headsets work and have worked great for Molly.

“But it was very scary and it seemed like his skin was moving. It was a little girl and one ear was in a strange place.

Molly’s head was normal when she was born five weeks preterm last August at St James’s Hospital in Leeds, weighing 4 pounds 14 ounces.

She spent two periods in the hospital during the first weeks of her life because she developed intolerance to cow’s milk and had meningitis.

By the time she was ten weeks old, it was “very noticeable” that one side of Molly’s head had become flat.

The local NHS Airedale, Bradford and Leeds Primary Care Trust was recently dissolved, but in an earlier statement on the case it said: “The NHS does not generally fund the use of cranial reshaping orthoses for babies with the condition. of plagiocephaly.

“This is essentially a cosmetic problem and in the majority of cases the problem will resolve itself spontaneously with advice on the positioning of the baby.”

Molly's head was normal when she was born five weeks preterm last August at St James's Hospital in Leeds, weighing 4lb 14oz

Molly’s head was normal when she was born five weeks preterm last August at St James’s Hospital in Leeds, weighing 4lb 14oz

She spent her first few weeks coming and going in the hospital because she developed meningitis, but she is now a healthy baby.  His parents continue to repay the loans

She spent her first few weeks coming and going in the hospital because she developed meningitis, but she is now a healthy baby. His parents continue to repay the loans



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How To Take A High Interest Loan And Avoid The Debt Cycle Smart change: personal finance https://infos-voyage.com/how-to-take-a-high-interest-loan-and-avoid-the-debt-cycle-smart-change-personal-finance/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/how-to-take-a-high-interest-loan-and-avoid-the-debt-cycle-smart-change-personal-finance/ But the “simple loan” of the American bank offers a rare example. The loan typically has an APR of around 71%. Borrowers with automatic payments pay a fee of $ 12 for every $ 100 borrowed and repay the loan over three months. OppLoans, a Chicago-based online lender, provides loans to borrowers with bad credit […]]]>


But the “simple loan” of the American bank offers a rare example. The loan typically has an APR of around 71%. Borrowers with automatic payments pay a fee of $ 12 for every $ 100 borrowed and repay the loan over three months.

OppLoans, a Chicago-based online lender, provides loans to borrowers with bad credit and has APRs of up to 160% in some states. CEO Jared Kaplan says it’s more expensive for his business to acquire and subscribe to customers, resulting in higher rates.

“Whether [your APR is] at 79, 99 or 160, you’re dealing with a risky customer base and the price should justify that risk, ”he says.

Choose a lender who verifies your financial data

Lenders who do not determine your repayment capacity using information such as your income, existing debts, and credit information tend to offer high interest loans with short repayment periods, which makes them difficult to repay and trap you in a cycle of debt.

Banks and other lenders who can access your bank account information and payment history can determine if you can afford the loan.

Simple loan applicants must have a checking account for six months and have direct deposits sent to the account for three months before they can apply, said Mike Shepard, senior vice president of consumer loans at the US Bank.



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Supreme Court Rules Against Payday Lender, Bans Grace Periods That Extend Loans, Increase Interest Payments https://infos-voyage.com/supreme-court-rules-against-payday-lender-bans-grace-periods-that-extend-loans-increase-interest-payments/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/supreme-court-rules-against-payday-lender-bans-grace-periods-that-extend-loans-increase-interest-payments/ The Nevada Supreme Court has ruled in favor of the state agency overseeing high-interest, short-term “payday” loans in a case challenging the creative use of “grace periods” to extend loans. loans beyond the period required by law. The notice, which was unanimously approved by the seven-member tribunal and released Thursday, says leading securities lender TitleMax […]]]>


The Nevada Supreme Court has ruled in favor of the state agency overseeing high-interest, short-term “payday” loans in a case challenging the creative use of “grace periods” to extend loans. loans beyond the period required by law.

The notice, which was unanimously approved by the seven-member tribunal and released Thursday, says leading securities lender TitleMax violated state law by offering a new loan product “deadline. grace ”that has exceeded the 210-day limit required by state law. Although the company, which has more than 40 locations in Nevada, stopped offering this specific loan product in 2015, the state estimated that using the loans resulted in additional interest payments of $ 8 million. of dollars for over 15,000 people while it was in place. .

Nevada does not cap the interest rates that a lender can charge an individual on a loan, but any business that assesses 40% or more interest on a loan is subject to legal restrictions, including a maximum time to repay a loan and several protections if an individual cannot repay a loan on time.

The law also allows lenders to use “grace periods” to defer loan payments, as long as this is not conditional on charging a higher interest rate or taking out a loan. new loan.

“Grace Periods” were used by TitleMax to create a loan product called “Grace Period Extension Agreements”, an option for clients that essentially speeds up a grace period by sending the upfront interest payments on a loan. and additional payments on the principal amount. , extending them beyond the 210-day limit set by state law.

But the practice was challenged by the state’s financial institutions division, which discovered the use of the loans during its 2014 annual review of TitleMax. He pointed to examples of people being charged much higher interest than they would pay on a traditional loan; including an actual loan offered by the company of $ 5,800 at an interest rate of 133%.

Under the traditional loan structure, an individual would repay the loan in seven monthly installments of $ 1,230, but the “Deferral Agreement” allowed him to make lower monthly installments ($ 637 for seven months, then $ 828). $ for seven months) but ultimately nearly doubled the amount of interest paid to TitleMax ($ 4,462 to $ 2,813.16).

Despite the division’s order, the company refused to stop offering the loans, which led to a case before an administrative law judge who ruled in favor of the state and fined $ 307,000. to the society. TitleMax appealed to the district court, winning an overturn from Clark County District Court Judge Joe Hardy in 2017.

This led to an appeal to the State Supreme Court, which heard arguments in the case in March 2019. The order, drafted by Judge Lidia Stiglich, agreed with the state agency and found that extending loans through a grace period resulted in illegal collection of excess interest that had to be repaid in same time as the principal amount owed on a loan.

“This restriction on a 210-day title loan cannot be circumvented by providing a grace period that effectively recalculates payments over the original term of the loan so that they no longer proportionately and fully amortize the loan. all principal amount and interest payable on the loan, ”she wrote in the order. “To be sure, (state law) provides that interest may be charged during a grace period; it simply cannot be “additional”.

But the court also overturned the administrative fine imposed on TitleMax, declaring that the penalties against the company were not justified given the actions of the company and the “reasonable”, but incorrect, interpretation of the law. ‘Status on Grace Periods.

“While we find that the (deferral agreements) violated (state law), TitleMax’s actions following the 2014 inspection reveal revealingly that it was unsure whether it violated applicable laws and that it took active steps to determine whether the (deferral agreements) violated the legal regime, ”Stiglich wrote in the ordinance.

Efforts to impose restrictions on payday loans in Nevada have generally been rejected by the legislature, with bills to set interest rate caps and create other restrictions unsuccessful in the 2017 and 2019 legislative sessions. Lawmakers have made approve a bill in 2019 the creation of a statewide payday loan database, against strong industry opposition.

But the most recent restrictions on the payday loan industry have come from legal challenges. The State Supreme Court ruled at the end of 2017 that lenders cannot bring civil suits against people who contract and default on a secondary loan used to pay off the balance of an initial high interest loan.

The court also another more recent case involving TitleMax; a state appeal on “refinancing” restrictions on securities lending (prohibited for deferred deposits and other high interest loans, but not specifically for securities lending.)

According to Center for Responsible LendingNevadans pay on average the fifth highest interest rate on payday loans at around 652 percent. The state has 95 approved “high interest” lenders with more than 300 branches statewide; a check last year found that nearly a third of lenders had violated state laws or regulations in the past five years.

Title Max Supreme Court Decision … through Riley snyder on Scribd



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Medicaid Extension, Primary Approved Payday Loan Fee https://infos-voyage.com/medicaid-extension-primary-approved-payday-loan-fee/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/medicaid-extension-primary-approved-payday-loan-fee/ Mike Parson will be challenged by Nicole Galloway in the November general election. Voters in Greene County yesterday approved the Medicaid expansion amendment – joining 37 states in the legislative movement – and new regulations on local payday loan companies. In yesterday’s primary election, about 32 percent, or 53,430, of the county’s 166,222 registered voters […]]]>


Voters in Greene County yesterday approved the Medicaid expansion amendment – joining 37 states in the legislative movement – and new regulations on local payday loan companies.

In yesterday’s primary election, about 32 percent, or 53,430, of the county’s 166,222 registered voters voted, according to the unofficial election results posted by the Greene County Clerk’s Office last night.

Amendment 2
Voters in Greene County and the state narrowly approved Missouri to adopt the Medicaid expansion.

In Greene County, Amendment 2 passed with 52.3% of the vote, according to unofficial election results. There were over 27,700 votes in favor of the proposal. At the state level, the amendment garnered 53.3% of the favorable votes out of nearly 1.3 million cast, according to the unofficial results issued by the Office of the Secretary of State for Missouri.

The legislation passed means that coverage will be extended to at least 231,000 additional people between the ages of 19 and 65 who have an annual income equal to or below 133% of the federal poverty line, according to past reports from the Springfield Business Journal.

This works out to about $ 17,000 per year for an individual or $ 29,000 for a family of three. Prior to yesterday’s vote, the state’s Medicaid program, MO HealthNet, was only available to low-income people in four categories: people with disabilities, families with children, the elderly, and pregnant women. There were more than 923,000 enrolled in May, according to the Missouri Department of Social Services.

The Medicaid expansion is expected to cost $ 200 million per year and save the state $ 1.3 billion by 2026, and the expansion is expected to create 16,300 jobs, according to earlier reports.

In the January state-of-the-state address, Governor Mike Parson called the Medicaid expansion a “massive tax hike that Missourians cannot afford.” Spend more dollars on health care systems and make preventive care more accessible to childless adults aged 19 to 65.

Payday loans
The payday loan initiative was adopted by 56.7%, or more than 14,700 voters, according to the Greene County results.

It’s part of an ordinance passed in May by Springfield City Council to reform short-term lending practices. Yesterday’s affirmative vote means the city can start collecting an annual fee of $ 5,000 – or $ 2,500 if less than six months are left in the calendar year in which the permit is issued – from residents. payday loan companies, according to past SBJ reports.

The Council’s order earlier this year required payday loan companies to obtain an annual permit from the city and post information on-site for customers to view, such as interest rates and fees, and providing borrowers with information on repayments.

Candidate results
Yesterday’s primary also included several candidate choices ahead of the November general election.

More than 84% of Missouri voters who voted Democratic sent Missouri state auditor Nicole Galloway to challenge incumbent Gov. Parson, who won 75% of the vote in the Republican poll. Also at the state level, former Missouri House of Representatives Vicki Englund was elected to hire outgoing Treasurer Scott Fitzpatrick, a Republican owner of Shell Knob-based MariCorps US LLC. The two treasurer races were unopposed.

For the 7th Congressional District seat in southwest Missouri, outgoing Rep. Billy Long got the nod with 66 percent of the vote. Democrat Teresa Montseny, who ran unopposed in the primary, will challenge him in the November elections.

Locally, homebuilder Rusty MacLachlan was chosen over State Representative Sonya Anderson for the Greene County Commission seat which is vacant by the retire Harold Bengsch.

Other candidate races include:
• Lieutenant Governor, incumbent Republican Mike Kehoe obtaining nearly 59% of the vote and Democrat Alissia Canady 73.5% of the vote;
• Attorney General, outgoing Republican Eric Schmitt running unopposed and Democrat Rich Finneran collecting 55.4% of the vote;
• the Secretary of State, the outgoing Republican Jay Ashcroft running without opposition and the Democratic candidate Yinka Faleti also running without a challenger;
• Missouri House District 131, with Bill Owen winning nearly 86% of the total Republican ballot and Democrat Allison Schoolcraft running unopposed;
• Missouri House District 132, with outgoing Democrat Crystal Quade and Republican challenger Sarah Semple both running unopposed; and
• Missouri House District 134, with Alex Riley winning 70.7% on the Republic ticket and Democrat Derrick Nowlin running unopposed.



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UK payday lenders play role in race for Connecticut governors https://infos-voyage.com/uk-payday-lenders-play-role-in-race-for-connecticut-governors/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/uk-payday-lenders-play-role-in-race-for-connecticut-governors/ HARTFORD, CT – (Update 2 p.m.) Bob Stefanowski’s role as CEO of a payday loan company was an easy target for Ned Lamont’s campaign, but in his last television commercial Stefanowski retorts that it was sort of Lamont’s family that benefited from the payday loan investments. Lamont’s campaign called the ad “patently bogus” and Lamont […]]]>


HARTFORD, CT – (Update 2 p.m.) Bob Stefanowski’s role as CEO of a payday loan company was an easy target for Ned Lamont’s campaign, but in his last television commercial Stefanowski retorts that it was sort of Lamont’s family that benefited from the payday loan investments.

Lamont’s campaign called the ad “patently bogus” and Lamont himself asked Stefanowski to withdraw the ad on Tuesday at an independent press conference.

“Annie certainly had nothing to do with it. Leave my wife out of this, ”Lamont said Tuesday.



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Real PDL Help offers programs to help clients regain control of payday lenders https://infos-voyage.com/real-pdl-help-offers-programs-to-help-clients-regain-control-of-payday-lenders/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/real-pdl-help-offers-programs-to-help-clients-regain-control-of-payday-lenders/ Real PDL Help offers a viable solution to help clients regain financial control and get out of debt. While payday loan consolidation companies come in all shapes and sizes and help consolidate payday loan debt, Real PDL Help does a lot more. Their team of Payday Loan Debt Relief Specialists work one-on-one with clients struggling […]]]>


Real PDL Help offers a viable solution to help clients regain financial control and get out of debt. While payday loan consolidation companies come in all shapes and sizes and help consolidate payday loan debt, Real PDL Help does a lot more. Their team of Payday Loan Debt Relief Specialists work one-on-one with clients struggling with overwhelming payday loans. The company’s programs are specially designed to reduce overall payday loan debt to a reasonable amount, based on income, which helps clients get out of debt quickly and realistically.

Real PDL Help guides customers through the process with step-by-step, easy-to-follow instructions, clear advice, and support for payroll consolidation ready. Their team provides the tools to settle payday loans once and for all, and help clients take action to protect themselves from collectors and get payday lenders out of their bank accounts. And most importantly, Real PDL Help provides the support needed to navigate this otherwise overwhelming and often confusing process.

The company works with its clients to negotiate a lower interest rate on payday loans and consolidate loans to make repayment manageable. By consolidating loans, it also decreases the number of lenders that a customer has to pay monthly. Instead, clients make a one-time monthly payment to the payday loan specialist who in turn pays the amount to various lenders. Additionally, Real PDL Help will work with lenders to reduce or completely eliminate late fees. Clients are better able to manage their debt and free themselves from harassing calls from creditors and their debt collectors.

“Taking out a payday loan can be an easy and quick way to overcome a financial crisis, however, payday loans lead to a slippery slope of large amounts of unwanted debt that may be impossible to repay,” explains Todd webb, CEO of Real PDL Help. “If you are struggling with growing debt and the stress of increasing payday loans, you are not alone. The vicious cycle of revolving loans and interest-only payments is not your only option.

Real PDL Help provides free advice to help their clients find a realistic and manageable way out of payday loan debt. For more information visit RealPDLHelp.com.

About Real PDL Help

Real PDL Help works one-on-one with clients struggling with the crushing burden of payday loans. Their goal is to reduce stress, help clients get out of debt, and do so in a way that matches their specific income level. Contact Real PDL Help for a free consultation.

Contact:

Todd webb
Telephone: Toll free: +1 (855) 413-4998
E-mail: [email protected]

This content was posted through the press release distribution service at Newswire.com. For more information visit: http://www.newswire.com

SOURCE Actual PDL Help

Related links

https://realpdlhelp.com



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Payday lenders start closing after voters cut interest rates https://infos-voyage.com/payday-lenders-start-closing-after-voters-cut-interest-rates-2/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/payday-lenders-start-closing-after-voters-cut-interest-rates/ This is an archived article and the information in the article may be out of date. Please look at the history’s timestamp to see when it was last updated. DENVER – Proposition 111, which passed in Colorado in the 2018 midterm election, caps payday lender interest rates at 36%. Currently, the average Colorado payday loan […]]]>


This is an archived article and the information in the article may be out of date. Please look at the history’s timestamp to see when it was last updated.

DENVER – Proposition 111, which passed in Colorado in the 2018 midterm election, caps payday lender interest rates at 36%.

Currently, the average Colorado payday loan has an interest rate in Colorado of 129%.

The measure is already forcing some businesses to close.

Payday Loans in Aurora, which has been in existence for 25 years, has announced its closure. The owner told FOX1 off-camera that the risk of lending money to subprime borrowers is no longer worth it.

Proponents of Proposition 111 remain grateful to voters who overwhelmingly adopted the measure. The aim of the campaign was to curb these businesses – calling them “predators”.

“It will take effect on February 1 of next year,” said Corinne Fowler, campaign manager for Proposition 111.

“Most likely, some will close,” Fowler added.

The payday loan market will not go away, however.

Traditional banks are not subject to these regulations because they are regulated by the federal government. FOX31 has learned that these banks are exploring possible short-term loans to fill the void in the market.

Dez, a Payday Loans client, says she needs a financial option to help pay her bills during the months she struggles.

“It’s just to get through pay week and stuff,” Dez said.

“Although it’s not the best thing to do all the time, but right now it’s useful,” Dez added.

Kym Ray disagrees.

Ray was a victim of loans and says it resulted in hundreds of dollars in unnecessary costs and fees – on a small loan of $ 300.

“They’re loan sharks – it’s awful,” Ray said.





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Traditional banks also offer payday loans – The Mercury News https://infos-voyage.com/traditional-banks-also-offer-payday-loans-the-mercury-news/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/traditional-banks-also-offer-payday-loans-the-mercury-news/ Tired of being buzzed around a storefront covered in bulletproof glass, Carl Martineau found a more dignified place to get a cash advance on his Social Security checks: a branch of Wells Fargo Bank. For California residents who simply can’t make ends meet, the bank’s tidy decor looks so much more appealing than the gritty […]]]>


Tired of being buzzed around a storefront covered in bulletproof glass, Carl Martineau found a more dignified place to get a cash advance on his Social Security checks: a branch of Wells Fargo Bank.

For California residents who simply can’t make ends meet, the bank’s tidy decor looks so much more appealing than the gritty payday loan stores that offer triple-digit interest rates in poorer neighborhoods across the country. the state. However, more and more traditional financial institutions are selling similar loans.

In California, payday lenders charge an annual interest rate of 460% for a two-week cash advance on a borrower’s paycheck or benefits. Conditions at major commercial banks are only slightly better – an average of 365% for a 10-day cash advance.

“People who know to avoid payday lenders think that if a bank offers it, it has to be safe,” said Lauren Saunders, chief counsel for the National Consumer Law Center. Yet “a bank payday loan presents the same problems as a traditional payday loan. You are caught in the same debt trap.

Bank officials say low-income customers are sometimes in desperate need of cash advances. But they stress that they don’t advise renewing the loan because of the admittedly high cost of the product – which banks say they don’t strongly promote.

Still, Martineau, who lives with his Honda Civic and has relied on as many as five payday loans at a time from mainstream stores, sees the bank as another salvation. He made his first Wells Fargo lead start in December.

“Payroll locations are very stigmatized. We really feel like we’re at the bottom of the barrel, ”said Martineau, 59. “Going to the bank is much more dignified. You don’t feel so ostracized.

Not subject to prohibitions

Last month, the Bay Area News Group reported on the proliferation of payday lenders in California and the powerful lobbying industry that fuels their success. Although 17 states have pushed lenders out of business, family-owned outfits and national chains have attracted hundreds of thousands of new California customers, while donating to politicians now pushing an industry-backed bill to expand. the loans.

Traditional banks avoid the title of “payday loan”, perhaps because of the stigma. They call their transactions “advances” on direct deposits and argue that they are not subject to bans in various states because national banking standards take precedence over state laws.

Banks also lend to US troops, using a loophole in a 2006 federal law that bans military payday loans at rates above 36%. Congress passed the law after a Pentagon report described payday loans as “predatory” and a national security threat to devastating military assets.

There is little publicly available data on the reach of bank payday loans, unlike non-bank point-of-sale loans, which reached $ 3.1 billion last year in California. However, federal regulators are starting to pay more attention to it.

In 2011, Regions Bank became the last major bank to offer payday loans in recent years, joining Wells Fargo, US Bank, Guaranty Bank and Fifth Third Bank: all of which offer payday loans in states that prohibit three-way loans. figures in stores.

Georgia has made payday lending a racketeering-fee crime for non-bank payday lenders, but Guaranty Bank offers a similar loan in Georgia. In Ohio, where voters have passed an interest rate cap for payday loans of 28%, Fifth Third Bank’s “Early Access Loan” has an annual percentage rate of 520% ​​for loans taken out. one week before payday.

Borrow more easily

Banks have also made payday advances much more convenient. They can be arranged online or over the phone 24 hours a day, 7 days a week.

Wells Fargo spokesperson Ruben Pulido described his bank’s Direct Deposit Advance program as “designed to help people facing an emergency, something short-term or unexpected, like a car “. High-cost loans are “not meant to solve long-term financial needs,” he added.

Wells Fargo customers who have a checking account and recurring direct deposit can borrow up to half of their monthly income, or a maximum of $ 500. At most banks, fees average $ 10 for every $ 100 borrowed. Wells Fargo charges $ 7.50 for every $ 100. Non-bank lenders charge $ 15 per $ 100, but under California law they can only lend $ 300 at a time.

Officials at the bank were unwilling to reveal how many loan clients it has, but said clients who use payday advances appear satisfied. “People say they have a sense of security that they will pay the full amount on their next deposit,” Pulido said, “and they don’t have to charge it on their credit card.”

But there are signs of hidden distress. Depending on the banking conditions, loan amounts are automatically deducted from the customer’s next direct deposit, even if this results in an overdraft fee.

“They get the first cut in your income – whether it’s wages or public benefits – before you pay for food, rent or medical bills,” said attorney Saunders.

Studies of borrowing patterns show that the vast majority of customers are so broke that once they take out a first loan, it almost always leads to more loans. This piles fees on top of fees until a significant portion of borrowers’ already low income goes to the lender, not household bills.

Rising interest

In an analysis of bank payday loan customers, the Center for Responsible Lending reported in July that loans last an average of 10 days.

Because the fee is a fixed percentage of the loan amount, the shorter the loan term, the higher the interest rate. While a one-month loan carries 120 percent interest, for example, a 10-day loan has 365 percent interest.

According to the center’s report, payday borrowers took on an average of 16 loans per year; some have borrowed more than 35 times. Social security recipients were more than twice as likely to use the loans as other bank customers.

Consumer advocates warn that banks trick customers by downplaying annual percentage rates – the benchmark that calculates fees and interest measured over a year. The APR is a central consumer protection of the Truth in Lending Act of 1968, as it allows borrowers to weigh one loan against another.

When approving payday advances, banks don’t measure the borrower’s ability to repay the loan, other than determining that the customer has direct deposit of a check.

Banks recognize the dangers of repeat borrowing.

US bank spokeswoman Teri Charest said her bank only provides account advances to “a very small percentage” of customers. After three months, they are contacted “to see if there is a better alternative for their credit needs,” she said. And after nine consecutive months, the bank imposes a “cooling off period” of three months.

Slice of the pie

Despite the warnings, more and more banks are being pushed by industry consultants to join the market to make up for lost revenue due to new federal regulations that limit overdraft fees. Representatives from Fiserve, an industry software vendor, present the market for lending small dollars to banks as “a very attractive income opportunity” – and a way to “make real money”.

Jean Ann Fox, director of financial services for the Consumer Federation of America, noted the trend: “The banks have said, ‘Look at all this money that payday lenders are making from our customers; why should we share with them? Let’s go ourselves. “

The United States Office of the Comptroller of the Currency, which oversees 1,500 federally chartered commercial banks, is drafting guidelines that will prompt bank examiners to determine whether payday advances lead to consumer abuse.

Fox said federal overseers have so far failed to take meaningful action. This, she added, fuels the industry as a whole.

“To the extent that banks get away with scot-less has become a lobbying point” for payday lending stores, she said. “This is helping to undermine the state’s efforts to control and curb the market for low-cost and high-cost loans.”

Contact Karen de Sá at 408-920-5781.



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A problem with a personal loan? The feds want your complaint https://infos-voyage.com/a-problem-with-a-personal-loan-the-feds-want-your-complaint/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/a-problem-with-a-personal-loan-the-feds-want-your-complaint/ The Consumer Financial Protection Bureau has expanded its database of consumer complaints to include payday loan issues. The CFPB is the first federal agency with the regulatory authority to oversee this industry. “Before the Office of Consumer Affairs, consumers who had problems with payday loan products had few places to turn,” CFPB director Richard Cordray […]]]>


The Consumer Financial Protection Bureau has expanded its database of consumer complaints to include payday loan issues. The CFPB is the first federal agency with the regulatory authority to oversee this industry.

“Before the Office of Consumer Affairs, consumers who had problems with payday loan products had few places to turn,” CFPB director Richard Cordray said in a statement. “By accepting consumer complaints about payday loans, we will give people a greater voice in this market. “

The CFPB has said it will accept customer complaints about:

  • Unexpected fees or interest
  • Unauthorized or incorrect charges on their bank account
  • Payments that haven’t been credited to their loan
  • Contact problems with the lender
  • Not receiving money after applying for a loan

The CFPB also wants to hear from anyone who received a loan that they did not apply for. This can happen when the lender mishandles personal information, such as a bank account number or social security number.

“We are delighted that the CFPB is accepting complaints regarding payday lenders,” said Lauren Saunders, lawyer at the National Center for Consumer Law. “The payday loan is one of the most abusive forms of lending. It’s time for someone to take a close look at them.

The Community Financial Services Association of America (CFSA), a trade group that represents payday lenders, also praised the CFPB’s announcement.

“The CFSA strongly supports the CFPB’s efforts to tackle illegal or unethical lending practices, and we believe the recently launched complaints portal will help both regulators and consumers identify the bad actors on the market. market, ”he said. in a report. “Prior to the launch of the portal, many of our members voluntarily signed up to participate in the process whereby they will work through the CFPB to quickly handle and resolve a complaint with a client. “

An attacked industry
Payday loans are big business. About 12 million Americans use a payday loan service each year, according to a report from Pew Charitable Trusts published last month. These small, short term loans are usually less than $ 500. It is a way for a person without credit to obtain a loan. But, it often comes at a high cost.

With most payday loans, borrowers have to repay the loan the next time they are paid. And they are usually required to give the lender access to their checking account to repay this loan.

Pew research found that most payday loan clients cannot make the full payment when due, so they take out a new loan every two weeks. It can go on for months. The bottom line: The average borrower spends $ 520 in interest to pay off a $ 375 loan.

The industry insists that it is providing “a valuable service” to clients who want and need these loans.

“Payday loans are often the cheapest option for many people,” said Amy Cantu, CFSA director of communications. “Our clients have done the math and they choose the payday loan because it is the cheapest option for them.

Where is it? In a report released earlier this year, the CFPB concluded that “some consumers may misunderstand the costs and risks”, particularly those associated with repeat borrowing.

“We all agree that people should have access to help when they are in trouble, but payday loans don’t help,” said Nick Bourke, director of Safe Small-Dollar Loans Pew Research Project. “By taking a third of the borrower’s next paycheck, payday loans just make ends meet. “

Based on his research, Pew called for tighter regulation of this market in order to make small loans safer and more affordable.

How to complain
Complaints can be filed online, by phone (toll free at 1-855-411-2372 or TTY / ATS at 1-855-729-2372), by fax (1-855-237-2392) or by mail (CFPB, PO Box 4503, Iowa City, Iowa 52244).

Each complaint is forwarded to the company which is invited to respond within 15 days on the measures taken or envisaged. The complaint and the response are published in its public database. The CFPB plans to close all cases, except the most complicated, within 60 days.

The CFPB accepts complaints about mortgages, credit cards, student loans, auto loans, money transfer services, credit reports, and debt collection.

You can get clear and unbiased answers about payday loans via Ask for CFPB or by calling the CFPB toll-free at 1-855-411-2372.

More information:

Herb Weisbaum is the ConsumerMan. Follow him on Facebook and Twitter or visit The Consumer Man website.





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The other Scott Gilmore and the cruelty of payday loans https://infos-voyage.com/the-other-scott-gilmore-and-the-cruelty-of-payday-loans/ Tue, 09 Mar 2021 11:34:59 +0000 https://infos-voyage.com/the-other-scott-gilmore-and-the-cruelty-of-payday-loans/ The payday loan industry benefits the poor and bleeds users dry. And it took a case of mistaken identity to drive Scott Gilmore crazy about it. Gary Tramontina / Bloomberg / Getty Images A month ago, a troubleshooting company started emailing me. I ignored them, assuming it was just spam. When they kept coming, I […]]]>


The payday loan industry benefits the poor and bleeds users dry. And it took a case of mistaken identity to drive Scott Gilmore crazy about it.

Gary Tramontina / Bloomberg / Getty Images

A month ago, a troubleshooting company started emailing me. I ignored them, assuming it was just spam. When they kept coming, I thought it was a phishing attempt trying to trick me into giving out personal details. I deleted them. They continued.

I then feared that someone had stolen my identity to borrow money. I called the company. A woman listened to me patiently. She told me that “my” account would be reviewed.

Shortly after, a sternly worded email arrived. “We regret to inform you that your request to delete your personal information cannot be honored. And the payment was due.

Alarmed, I clicked the link in their email and logged into “my” account. I discovered that another Scott Gilmore had borrowed money and inadvertently entered my email address.

It is strange to scrutinize the life of your double. This Scott is younger. He works in a barbecue restaurant. He is single. He earns $ 500 a week. I found his Facebook page. In his profile picture, he is holding a young son in his arms.

But when I saw the terms of the loan that led to this strange encounter, my curiosity turned to shock. Scott had borrowed $ 300, to be repaid over four months, at 400% interest.

I am familiar with the exorbitant practices of the payday loan industry. I casually knew that it benefits the poor. But I must have bumped into someone with my name who was getting ripped off for money they didn’t have, before I got mad.

There are over 1,400 points of sale across the country. They mainly target people with low to moderate incomes and without assets. Almost two million Canadians took out a payday loan last year. They are respectable people whose jobs are facing an unexpected car repair or who are too short of back-to-school supplies. People like you and me, a little less fortunate this month.

Canadian usury laws prohibit more than 60% interest on loans, but in 2006 the federal Conservatives passed a law exempting payday lenders from criminal penalties and effectively removing the interest limit. Since then, the industry has metastasized.

Regulations vary. Manitoba limits prices to $ 17 for every $ 100 borrowed. In Ontario, it’s $ 21. Sounds reasonable, but it’s an annual percentage of over 540% – double the traditional strength charged by loan sharks. Stan Keyes, former federal cabinet minister and now president of the Canadian Payday Loans Association, argues that it’s unfair to calculate the interest rate this way, since loans typically only last two weeks. However, he concedes that many borrowers take out multiple loans during the year.

It’s getting worse. A quarter of the loans are initially in default. Lenders really want this. For an additional fee, they are happy to extend the loan for another two weeks. Week after week, borrowers are slowly bled dry, often paying back several times more than what they borrowed. What other businesses benefit from keeping their customers away? Is there a more morally bankrupt industry?

The impact is immense. When people fall behind in their payments, the costs add up, creating a painful financial drain on those who can least afford it. The stress this creates is immense. A recent study from St. Michael’s Hospital in Toronto found a relationship between the number of payday lenders in a neighborhood and premature mortality.

The industry maintains that it is simply responding to market demand. Keyes told me. “It is blatant paternalism to prevent low-income people from borrowing money when they need it.” But it really is a market failure. Their customers can always find better deals at a fraction of the cost at credit unions or traditional banks. But payday lenders hide their ruinous interest charges, take advantage of financial illiteracy, and create a path of least resistance to their plexiglass cubicles.

There is hope. Banks have made credit cheap, and payday lenders have made it easy to obtain. New startups, like Toronto-based Borrowell, are trying to beat the two by offering cheap and easy credit. It only takes a minute to apply for a loan on their website which is even faster than going to the check cashing store. What about their interest rates? A relatively human 13% on average. They have already received over $ 100 million in claims to date.

Keyes complained to me, “The media like to demonize short-term loans and perpetuate stereotypes that people who take these loans are helpless and stupid. May be. I wouldn’t say the other Scott Gilmore is either of those things. Nonetheless, his lender is taking advantage of the fact that he does not know of other cheaper options.

At the end of our interview, I asked Mr. Keyes if he had ever taken out a payday loan himself. In an unexpectedly frank moment, he replied, “No. I was lucky. I have financial literacy.



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