Payday Loans — Like Them or Not, They are Needed by Millions

In recent years, the payday loan industry has been receiving a great deal of attention from legislators at the federal and state levels as well as from consumer “watchdog” agencies. Politicians and agency heads have decried payday loans as “usurious” and “debt traps,” accusing cash advance lenders of “preying” on vulnerable consumers. However, whether politicians

Why George Soros is Short the S&P – and Long Gold

George Soros, the billionaire investor and philanthropist, is betting against the Standard and Poor 500 index due to his fear of another global financial crisis. During the first quarter of 2016, Soros sold 37 percent of his S&P stocks. Market Watch reported that he transferred these funds to gold and stocks for gold producers. Soros’

Installment Loans – Ugly, but Necessary

When traditional lenders decided to put the kibosh on approving funds for people with imperfect credit histories, they forced those in need of emergency cash to look elsewhere for money. Because of this, installment loans are ugly but necessary. People Use Installment Loans When Borrowing Options are Slim Payday loan lending got its start in

Further Bloodletting in Store For the Shale Oil Industry

In 2014, shale oil emerged in America and Canada as an ideal substitute to foreign crude oil. By 2015, the reduced demand for shale oil greatly weakened OPEC. Unfortunately, the massive supply glut in the oil industry has kept energy prices low. While these low prices have diminished the influence of OPEC, companies in the

What Happens when Japan’s Debt Monolith Implodes

Depending on who is in charge of the numbers, Japan’s national debt ranges from 230 percent to 250 percent of its gross domestic product or GDP. To compare, the United States is around 105 percent, so Japan’s numbers are significant. If Japan’s debt monolith implodes, it could have far-reaching consequences. Japan Avoids a Debt Implosion

Installment Loans – Let the States Decide

Called by different terms that include marketplace loans, nonbank loans, shorter term lending and Internet-based loans, installment loans work differently than most payday and short-term loans such as auto title loans. These loans allow consumers — and a significant number of small businesses — to borrow amounts that range from $200 up to $5,000 and

The Payday Lending Industry and CFPB Overreach

The payday lending industry is increasingly gaining support from some surprising sources in its campaign against CFPB overreach and the agency’s purported plans to regulate payday lending out of business. The Consumer Financial Protection Bureau, which was established in 2010 to protect consumers from predatory lending practices, was originally expected to limit payday lending severely

End Onerous Payday Loan Regulations – It’s Supposed to be a Free Market

With the creation of a new federal agency designed to oversee the protection of consumers, economic experts are beginning to consider whether more government oversight is needed. The country may function better by allowing the free market to be free. To this end, it’s time to stop payday loan restrictions now. The Advantages of a

Ominous Omens Build for a Stock Market Crash

Stock market crashes destabilize economies and make investors leery. When they happen, a recessionary period marked by slow economic growth usually follows. Because the markets face continuous exposure to risk, it’s tough to predict crashes. They are also impossible to avoid. In the past, stock market crashes have sent industry experts and investors searching for

Why the Cash Advance Industry Should Be Regulated

Federal regulations on the financial industry were few prior to the 20th century. However, in recent years, the government has become increasingly aggressive in regulating the financial industry. Federal efforts became even more intense following the financial crisis of 2008, which was described by the New York Times as “avoidable.” Excessive risk-taking, lacking of government

The Pension Funding Crisis Has Begun

Recent fiscal reports combined with current economic conditions show that the pension crisis has begun. The crisis is occurring at the state, federal and corporate level, and it is happening across America. According to industry experts, the financial catastrophe is hitting now because of a disparity between pension commitments and the funds set aside to

Payday Loans and the Hidden Cost of Bank Fees

While excessive interest rates and hidden fees have been top concerns in the payday lending industry for years, the burdensome banking penalties often associated with automatic loan repayments are now coming under heavy criticism. A recently released report by the Consumer Financial Protection Bureau (CFPB) found that nearly half of 20,000 payday loan accounts had

Protecting Your Wealth in an Economic Crisis

No one knows his way around a financial crisis better than Warren Buffett does. From October 2008 to March of 2009, shares in Berkshire Hathaway, Mr. Buffett’s company, fell by 32 percent. Because Berkshire owns numerous companies that performed well, the book value of the corporation ended up seeing a decrease of just 9.6 percent

How Payday Loan Regulation are Fueling the Rise of Loan Sharks in England

The number of borrowers who are approaching loan sharks for emergency money is on the rise in England due to stricter regulations on payday loan lenders. According to the Consumer Finance Association, or CFA, which is an organization that represents the country’s short-term lenders, recent restrictions against the industry have decreased people’s access to these

CFPB Report Hits Payday Loan Industry Hard

When the Consumer Financial Protection Bureau, or CFPB, began considering regulations for the short-term loan industry, the agency started the process by doing its homework. Recently, the CFPB released its findings, which hit the payday loan industry hard. During a press conference, Richard Cordray, the agency’s director, said, “We promise to consider this data further

Stop Payday Loan Restrictions Now — Let the Free Market be Free

In recent years, the payday loan industry has come under increasing scrutiny and criticism. Terms such as “predatory” and “abusive” have been hurled by opponents of payday lenders to describe these companies’ lending practices. Defenders of the payday loan industry feel that the government is overstepping its powers by attempting to regulate the free market.

Online Payday and Installment Lenders Face Ominous Risks

Online payday and installment loan lenders face ominous risks. Heavy regulation, prosecution and too many delinquent accounts are just a few of the perils confronting the industry. Payday Loan Industry Faces Onerous Regulation Burdens According to CNN, about 12 million Americans take out short-term loans each year. The success of the business and its reputation