A recent Center for Financial Services Innovation and Core Innovation Capital report completed to assess the country’s financially underserved residents found that installment loans are gaining favor over their higher interest short-term counterparts. This research report offers the nation’s lenders a glimpse of the amount that financially underserved people spend on interest and fees, helping
Cash-strapped people with poor credit scores can become desperate borrowers. In this situation, those in need of money may turn to any source for funds including short-term lenders, but when it comes to payday loans for bad credit borrowers, are there other options? For many, there may be. In fact, cash-strapped borrowers may have more
In Nebraska, the cash advance industry is a thriving one. Companies that lend funds under cash advance terms have been charging excessively high interest rates and operating with few regulations. However, Nebraska is joining states that are going after the cash advance industry. Nebraska Becomes a Team Player by Targeting the Cash Advance Industry To
While the financial industry expressed a great deal of concern about the Federal Reserve’s rate hike, so far, the quarter-point interest rate increase has yet to affect personal loan rates in any significant way. Because of this, bad credit personal loans remain a valid option for debt consolidation. Dan Matysik, the vice president of personal
For years, New Mexico’s lawmakers have struggled with the problem of payday loans. While some legislators would prefer to decrease regulation, payday lending often traps the state’s borrowers in a cycle of debt. Because of this, a number of New Mexico legislators are attacking payday loans, but can they succeed? Maybe they can if they’re
While defaulting on traditional loans can have lasting consequences, the fallout usually pales in comparison to what can happen when you fail to repay a payday loan. When you default on a payday loan, very bad things happen. Things like being required to spend a day in court, having your wages garnished and negative reports
To keep their finger on the pulse of the financial wellbeing of everyday Americans, organizations like the Center for Financial Services Innovation, or CFSI, completes money-based studies and surveys. A recent assessment found that underserved American consumers paid an estimated $141 billion in interest and fees during 2015. These fees were generated from $1.6 trillion
Once the Trump administration gets its hands on the Consumer Financial Protection Bureau, or CFPB, small-dollar lenders are sure to enjoy a lot less scrutiny. The cash advance industry may find relief under the new administration since Trump’s people are sure to overhaul the country’s consumer watchdog agencies. A Business-Friendly Administration may Give the Cash
Federal oversight of banking laws and lending practices has become redundant and unnecessary because many states are already capping payday loan fees and interest rates. The federal government’s high-profile campaign against the payday lending industry, which has been spearheaded by the Consumer Financial Protection Bureau, amounts to overkill according to many critics of the agency.
Rate caps on payday loan products are already forcing payday lenders and traditional lenders to close shop, which critics suggest would impose great hardships on average families who have low credit scores in the 500s and low 600s. Bigstory.ap.org reports that the regulatory changes proposed by the CFPB could well do more harm than good.
Storefront and online payday loans decreased 23 percent in 2016, according to information released by the Center for Financial Services Innovation, also known as CFSI. Some of the decline is due to payday loan borrowers shifting to bad credit installment loans or other subprime credit products. However, the CFSI study also revealed some alarming statistics
The cash advance industry has been under fire for several years. Critics charge that the rates are excessive and that borrowers can become trapped in a cycle of debt. In June 2016, the Consumer Financial Protection Bureau released its proposed rules to regulate lenders how offer payday, title, personal installment and cash advance loans. The
There are many kinds of online installment loans, and these include bad credit installment loans for people with low-to-medium credit scores. Loans can prove to be lifesavers when financial emergencies arise, but they often carry high interest rates. Over time, the extra money that you spend servicing your debt can easily generate severe financial difficulties,
Bank overdraft fees have begun drawing more opposition than cash advance loan fees because these unexpected costs often trap consumers in cycles of debt. According to an article posted at Chicagotribune.com, overdraft fees often lead to additional bounced checks, and the costs multiply out of control. Many consumers face impossible challenges to cover these costs.
The payday loan industry actively tries to trap people in cycles of debt that the Consumer Financial Protection Bureau is attempting to eliminate, according to a recent article posted at Consumerfinance.gov. A payday loan is typically a short-term loan of between $100 and $500 that consumers can easily obtain when they need small amounts of
A recent analysis conducted by CNNMoney and SNL Financial found that three of America’s largest banks, JPMorgan Chase, Bank of America and Wells Fargo, made more than $6 billion from just overdraft and ATM fees last year. The excessiveness of the fees caused so much frustration throughout the country that they became an issue during
The holidays are a stressful financial time for many people. During the Christmas season, expenses start to escalate due to the need to pay for travel, parties and gifts. When unplanned expenses put a strain on the budget, Christmas loans may become a tempting option. However, these so-called Christmas loans are simply payday loans under