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
Cash advance loans advertising quick money is a temptation for those who are experiencing a cash shortage. However, online cash advance loans are rife with fraud, FTC warns. According to the Federal Trade Commission, lenders don’t always follow regulations. They violate the law by lying about fees and by requiring cash advance borrowers to give
If money is tight during the holidays, then using a payday loan to cover Christmas costs is tempting since the lending option gives borrowers access to hundreds of dollars. However, payday loans make the holidays even more expensive. High fees cause the interest rates for payday loans to escalate to outrageous levels, increasing the price
Pawn shops tend to get a bad rap. These businesses are often lumped into the same category as payday loan and auto title loan lenders. However, pawn shops are a cheaper alternative than payday loans. Pawn shops operate by giving people loans with personal property as collateral. Many shops allow loan borrowers to repurchase their
An unexpected expense can wreak havoc on your monthly budget or leave you scrambling to find a way to cover the bill. However, according to a report appearing in USA Today, many Americans do not have the savings to cover an unexpected expense of $1,000. Approximately 75 percent of households earning less than $50,000 per
Borrowers who take out payday loans should understand that it’s critical to be able to repay these loans as agreed, or they could face high overdraft fees and additional interest charges for financing their loans for longer periods if the money isn’t in the bank to cover any scheduled payments. Unfortunately, payday lenders don’t control
With cash-strapped students turning to cash advance loans for financial aid, it’s time for government agencies to do some soul searching. While short-term lending provides immediate relief, it also results in students falling deeper into debt. Recent studies and surveys confirm the depth of this problem. Broke Students are Searching for Financial Aid from Cash
Sweeping reform in the direction and tone of congressional legislation is increasingly likely under unified Republican control of the executive and legislative branches of government, and one of the biggest items on the conservative agenda is replacing Dodd-Frank and the CFPB’s regulations of cash advance loans and other financial products. Rep. Jeb Hensarling, who chairs
Payday advance lenders face increased regulations and a challenging job in trying to reform the industry’s image under increased regulatory efforts at the state and federal levels. Many responsible lenders are working within trade associations and trying to comply with new regulations from the states and the CFPB, but maverick lenders paint all short-term lenders
Online installment loans face increased scrutiny that also applies to payday lenders, banks, credit unions and alternative lenders such as Native American lenders who don’t necessarily have to follow state and federal regulations. The intention of the Dodd-Frank Act of 2010 and its creation of the Consumer Financial Protection Bureau was to protect families with
Few financial services have raised as many issues and concerns as getting a cash advance online, but what are the facts? The payday loan industry makes these loans available to most consumers who don’t abuse the process or default on their loan obligations, but critics have attacked the industry because of its high interest rates.
Controversy has surrounded the Consumer Financial Protection Bureau and its self-imposed mandate to regulate the payday loan industry and other financial services. Republican lawmakers have been among the most vocal critics of the agency since its creation was authorized by the Dodd-Frank Act. Supported by President Obama, most Democratic lawmakers and consumer-protection advocates, the CFPB’s
The Consumer Financial Protection Bureau’s war on installment loans disenfranchises the people that it’s charged with protecting according to a report posted at Investors.com. The agency not only exceeds its legislative mandate but also uses questionable tactics that generate de facto legislative actions by enforcing laws that have not been passed by any legislative body.
The Consumer Financial Protection Bureau, the agency created after the financial meltdown of 2008, has taken aim at the cash advance loan industry almost since the agency opened its doors. The CFPB’s latest attack is in the form of proposed rules that many people believe would “regulate cash advance loans out of existence.” The proposed