Predatory lending debt: the poor pay more
Money talks. Most politicians can't get elected without getting complete support from centralized financial systems and the real estate industry. Politicians from both parties are bought and paid for. We may well be on our way to seeing a credit card and sub-prime lending economic tsunami that could create chills down the spines of all. In March 2007, the Senate Banking Committee started investigating lending practices and how they negatively impacted middle-class, low -income consumers and students. There used to be a law that capped the amount of interest that could be charged. Thanks to the politicians who needed the financial banking from industry, the Usury law and other consumer protections have been wiped out and replaced with "market competition". We see how well market competition works. California has almost no consumer protections left in telecommunications where giant carriers have merged to provide more options in technology and almost no competition. We see how well it works in the oil industry where the major players work together with refineries to keep supplies "appearing" low and prices higher than most of us can pay.
Banking Committee Chairman Carl Levin of Michigan said, "Millions of families...are kept in debt and are in over their heads not just because of their own purchases...but because of the abusive practices and excesses of the credit card companies." Who cares whether the debt is personal or global if we see continually growing foreclosures and bankruptices ripping through our economy and world markets?
Debt is taught via advertising from the time we learn to point to something we want. Our children are indoctrinated with ads and we are forever trying to live the American dream as it's marketed to us. I went to H&R Block and was offered both a loan to pay my taxes if I owed money and was offered an advance if I couldn't wait for a possible tax refund. It looked like a 600-700% return on the company's money to offer me money in advance or to take out a loan; whichever was going to apply. While waiting, I watched two people sign on the dotted line without taking the time to read all of the terms and conditions.
When my daughter was in med school in the 90's, MBNA sent credit cards and blank checks for cash advances to all of the students in their first year at Texas A&M. We found out that being academically bright does not translate into being financially bright. The parents were furious! many students were there on student loans, scholarships and grants and had NO credit. After meeting with the parents and the school, no one was clear on how MBNA got the student names. The question posed to the school officials as to whether or not the school gave out the names was never answered. The real issue is how credit card companies can issue credit to students not earning a dime. The company swore it checked out credit worthy applicants. Yeah, right. The truth is that credit card companies were looking at potential earnings only. My story is not unique as I listened to the televised testimony before the Senate Banking Committee. On top of college, living expenses and then med school, we're talking some serious money that could have followed my daughter and her peers the rest of their lives.
It would have been my fault that I failed to educate my daughter properly on credit and debt if I had known this type of predatory lending was possible. All I know for sure is that market competition and lack of regulation in almost every arena could well create a spiral downfall that will become another lesson not learned.
"In Debt We Trust: America Before the Bubble Bursts" is a direct documentary worth viewing. I am not a film critic and can only say that few have tackled the topic of credit in plain English as forthright as this writer and producer. Perhpas it will be helpful to the target populations---You and Me!
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No Fax Payday Loans
Is it fair enough to accuse all payday companies that they are predators? We cannot really say that a particular payday loan company is guilty of deceiving their consumers after all there’s no complaint filed in the court and there’s a final verdict being made. Sometimes we really can’t avoid payday loan especially when we ran out of money unexpectedly. But as a consumer it is our prime duty to choose well what payday loan company to trust. We must conduct a research about those companies that can be trusted. This site has articles about the pros and cons of loans: http://personalmoneystore.com/moneyblog/. You’ll be surprised on how some big payday loan companies play dirty tricks on its consumer.
The Real Predator
Talking about money is very common nowadays, because as far as I know, this is the only thing that everyone need in every days of life that we are living. Even though we have stable job, we will surprise of what life’s bring. Sometimes we are facing an emergency of needing instant cash. For this matter, we should look for a better solution to solve this problem.
Banks criticize no fax payday loans about high interest rates without revealing their secrets about it. View - http://personalmoneystore.com/moneyblog/2008/08/05/banking-purchases-tri... and you’ll be realize and surprised of what you will find out. We can’t blame anyone about the existence of this industry because ‘no fax payday loans’ is just giving people an option when they need instant cash.
Based on what payday loan companies doing, I know that online payday loans are a wonderful thing when you're strapped for cash to pay the rent, but don't want to pawn your jewelry, your household TV, or other personal belongings.
People have turned to cash advances to help themselves in their time of need, whatever their situation may be.
Some low fee payday loan companies, nowadays, even have begun to offer payment plans. This means that, upon being offered the option you either can pay the full amount back upon the arrival of your next paycheck or do so in the form of equal installments.
The stress you had ten minutes ago has now vanished, as you've been assured that someone is here to help you with at a moment's notice. After all, we're regular people, too. http://personalmoneystore.com/moneyblog/
HARVARD GETS HACKED by scam Mortgage Site
Creating a page and improperly set their mortgage loan page within some reputable no commercial domains such as .gov, .org, and .edu is the main objective of hackers that may lead to substantially compromised of the safety and integrity of those reputable non commercial domains. Hackers want to put their site in a position that take the favorable Google page rank of the violated web page. http://personalmoneystore.com knows that public should be aware of this Google results disturbance because it may lead to confusion and deception of these acts of fraudulent to gain several unfair and dishonest advantages. http://personalmoneystore.com/moneyblog/2008/08/16/harvard-gets-hacked-b... has the article about this topic. You may visit that site for further information about these illegal perpetrators.
Payday loans are for everyone
Payday loans are useful for those people who are in need of quick cash. It is not only for poor people, everyone can have it and that is an important thing. There are so many unexpected instances that will need a fast cash advance.
I remember a time way back when, when my paycheck had run out several days before I was to be paid again, though had bills that were coming due. I truly was not sure what I was going to do.
Scrambling, I remembered those commercials for payday loan places I'd seen on tv and logged on to see what they were all about.
The website explained to me, in plain English, what steps I would need to apply for, and hopefully be approved for, a payroll advance.
The online payday loan application took only a few minutes to complete and I was approved in seconds. Best of all, I had the cash I needed in just a few short hours, allowing me to put groceries back on the table in borrow flat. Thanks to a no fax cash advance, a huge burden was lifted off my shoulders.
Here is an article related in cash advance:
http://personalmoneystore.com/moneyblog/
Payday Loans are very useful
Payday Loans are very useful to the people. It has a great help to the consumers especially to those who need cash in an emergency
Cash advances are helpful in many different ways.
For example, if a disaster happened such as a fire and your house burnt down, how are you going to survive? A low fee payday loan could help pick up the tab on food, bedding, clothes, temporary lodging and other essential items you cant live without.
The extra money from a payday cash loan would help you get through until you are paid again, either from your insurance company or your employer.
If there were no easy payday loans available, so many people on the streets with nowhere else to go. Furthermore, if there were not cheap payday loans available where would people end up getting money from? There would be no solution for a tragic accident unless we all had a person in our lives that could always help, which very few of us do.
It is for these reasons and more that these no fax payday loans are very helpful in many different ways and why we should we get rid of the option. Here’s a site for you guys: http://personalmoneystore.com, their articles are written in the blog that discussed the pros and cons of having a payday loan.
Response to Preditory Lending Articles in favor of cash advances
There are many who put forth their theory that the payday loan industry is a giant conspiracy to rob poor people. The Federal Trade Commission reports that cash advances actually reduce the poor's dependence on emergency government funds.
Payday Loans or Cash Advances are a great short term loan option. Of course they are not micro business loans but they do come in handy if the fees are worth it to you. There is much controversy about payday loans and many claim that there is a high rate of predatory collection practices. Consider this:
What happens if an individual is late in paying back a no fax payday loan?
We fully understand that as life happens, sometimes individuals
ability to make a payment on a loan can be hindered. If anyone finds
themselves in this situation, we encourage you to contact your
cash advance
lender as they typically will do everything they can to work out a
payment plan with you.
You are probably aware that the practice of not reporting to credit
bureaus is in direct contrast to that of traditional creditors such as
credit card companies or banks. When you make a late payment, they are
quick to file negative reports with the credit bureaus.
Typically, credit checks are not required when you apply for a
no fax payday loan
through our company. Thus, in many cases, whether an individual is
applying for a
cash advance online
or attempting to work out a repayment plan with a lender, financial
privacy is respected.
In providing services to individuals, we strive to make the
experience as fast and private as possible. Once you see what
payday loan
services have to offer when you’re in need of temporary financial
assistance, we trust you’ll come to appreciate the convenience and
benefits of personal loans.
Respond on our blog:
http://personalmoneystore.com/moneyblog/
Visit our site:
http://personalmoneyblog.com
no fax payday loan
Credit cards
Citibank got rid of universal default under pressure from Congress. How many millions did they trap and take advantage of before they stopped?
I wouldn't trust Citi at all. I am sure these Goliaths of Greed have many more tricks up their sleeves.
The National Consumer Law Center recently came out with a 36 page report on Fee Harvesters. Banks like First Premier of South Dakoto were mentioned along with many other predators. They are the worst of the worst, sending dreadful offers to the newly bankrupt. Unfortunately some people are navive, desperate or just plain uninformed and fall into these traps.
Nobody needs a credit card. It is crazy to even offer credit cards to the poor. What the poor need is to pay their essentials on time, establsih stability, an emergency fund and then be offered credit at a decnt rate.
Many people live without credit cards. Faithful followers of Dave Ramsey live without credit cards.
So do members of Debtors Anonymous.
This ridiclous notion that everyone "needs" a credit card to establsih credit or re establsih credit is insane.
More attention needs to be paid on a persons stabilty< lenght of time at job, lenght at home or apt> and savings in determing any " credit score" .
Playng the credit card game is too risky for many.
The credit card co's hold the cards, and the deck is stacked against the consumer!
Disclosure
I'm not sure exactly what a "fair set of rules" are, but banks are required to make full disclosures of the terms and conditions of their products. Now I will readily admit that one needs a lawyer to figure out all the fine print, but many consumers do not make any effort to read them. Bank products are like any other consumer decision, if you do not like the terms do not get one.
Meanwhile, there is some good news for Citibank credit card holders, since they eliminated universal default. It used to be if you were behind on your payments to any unsecured creditor Citibank could increase your APR. Not anymore, they just looks at your record with them and not others in your credit report.
Rapacious lending for the uninformed by the unenlightened…
Thank you for the excellent article, Dr. Macomber. All of us, except the entitled wealthy 2% of the populace, are easy fodder for the lenders you describe in your piece. It only takes one accident or illness to end up watching your 5% credit card from WAMU, BOA, or GE ratchet quickly to the stratospheric level (25% to 35%) of usury. We all know banks are not are friends, nor should they be. They are in business to make money and turn a profit, and that is fine. But shouldn’t they have to play by a fair set of rules?
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