Business

Millions of Americans Need Payday Loans; New CFPB Rules Would Prevent That

The Consumer Financial Protection Bureau finally issued regulations that affect the payday lending industry. The new rules would require lenders to ensure that borrowers have the ability to repay their loans and limit how many times electronic debits could be presented at banks. Presenting electronic checks multiple times for payment escalates bank service charges, but

Payday Loans – Addictive as Drugs

Payday loans can be addictive because they’re readily available and easy to get, so people turn to them often when they need cash to tide them over during financial emergencies. Unfortunately, these loans were meant only for short-term, emergency cash needs and carry high interest rates to keep them available to everyone–even people with bad

With Rising Oil Prices, Could Shale Oil be Set for a Recovery?

2016 has been a time of volatility, speculation, and uncertainty for the global energy markets. During the first quarter of 2016, oil prices were at low levels that threatened the profitability of many energy firms. These price-related issues were caused by a supply glut in the global market for oil. This excess supply was partly

Why the Smart Money is Getting Out of Stocks

Despite the Dow’s record setting numbers, experts report that smart money is getting out of stocks. Smart money earned its nickname from making better decisions than average investors, so if those who are in charge of these funds are shifting their investment strategy, then everyday stockholders should consider following suit. Why is Smart Money Fleeing

Are High Interest Installment Loans any Better than Payday Loans?

Increased state and federal regulations are forcing many short-term loan lenders to switch their business tactics. Instead of offering traditional payday loans, these lenders are transitioning into providing installment loans. Are high interest installment loans better than payday loans? The answer to this question comes down to the consumer and his or her needs. What

If not for Payday Loans, Would Loan Sharks Fill the Void?

The term “loan shark” was coined in America during the latter half of the 19th century, according to an article published in the Washington and Lee Law Review. The epithet was applied to lenders offering salary advances and chattel mortgages, which were types of loans that become prominent around the time of the Civil War.

Does the Payday Loan Industry Qualify as Predatory Lending?

Critics of payday loans frequently call the industry’s lending practices “predatory.” Since there is no universal legal definition of predatory lending, it is necessary to review what financial experts consider predatory practices. Only then will it be possible to decide whether the payday loan industry is guilty of predatory lending practices. What Qualifies as Predatory

Google Kills Advertising for the Payday Lending Industry

Taking the payday loan industry by surprise, Google announced that it intends to kill advertising for short-term loan lenders. While making this announcement, the Internet company accused the industry of using harmful and deceptive business practices. Google could have a greater impact on payday loan lenders than government agencies since many of these loans begin

China’s Pending Lehman Moment Will Collapse World Markets

With billions of dollars taking their leave of the country, China could be facing a Lehman moment. If this happens, world markets may collapse. The global stock markets recently entered panic mode when shares plummeted in Europe and Asia for the second day in a row. This situation sparked fears that the global economy may

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

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

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

Federal Regulators Begin Reign of Terror on the Payday Lending Industry

With the Consumer Financial Protection Bureau, or CFPB, gearing up to enact its reign of terror on payday lenders, some companies are digging in their heels while others are bailing out. The agency spent more than four years completing studies and listening to industry experts to decide what regulations to put in place. Change is

Explosive Credit Growth Forestalls Chinese Economic Collapse

To fortify its tenuous economic pickup, China’s local governments recently embarked on a new cycle of debt financing. While this step may be effective in the interim, industry experts point out that the rest of the world should consider it a revelation regarding China’s actual financial stability. The country’s explosive credit growth is supporting its

The Future of the Installment Loan Industry – Will Federal Regulation Kill It?

A year ago, the Consumer Financial Protection Bureau, or CFPB, took steps toward regulating the temporary loan industry. Ed Groshans, a financial specialist for Height Securities, said, “The CFPB made it extraordinarily clear that the path they’re going down is intended to eliminate the vast majority of payday lending.” The agency’s recent proposals will surely