Bank of America has just set aside some cash to compensate Freddie and Fannie for bad guaranteed loans the bank is responsible for. Image: MoneyBlogNewz/Flickr/CC-BY

Bank of America has reached an agreement to compensate Freddie and Fannie for selling them toxic guaranteed loans. The largest bank in the nation will pay more than $3 billion to the troubled mortgage houses. B of A is expected to take a loss on the deal.

Bank of America to make amends for bad guaranteed loans

Bank of America has finalized an agreement to compensate Freddie Mac and Fannie Mae for toxic mortgage assets sold to the two mortgage houses, according to MSN. Not all of the bad guaranteed loans were sold to Freddie or Fannie by Bank of America, however. The settlement is largely over loans that were originated by Countrywide, which was purchased by and merged into Bank of America in 2008. Prior to that, Countrywide had been one of the largest loan lenders in the nation for mortgages. Of all people who bought a home from New York to San Diego and all points in between before the 2008 mortgage crisis, about one in five got their home loans from Countrywide. Bank of America took over responsibility for all Countrywide assets, including settling with Fannie and Freddie.

Expected loss for largest national bank

It is expected that Bank of America, the largest bank in the nation, will file a $2 billion loss for the fourth quarter of 2010. The bank has set aside more than $3 billion for Freddie and Fannie for Countrywide mortgages and others sold to the mortgage houses. B of A has already bought more than $11 billion in bad bank loans from the two houses, with around $2.7 billion left. Still, Bank of America probably won’t need a cash advance to see the agreement to the end.

Mortgage houses still owed

Numerous large banks still owe Freddie Mac and Fannie Mae some considerable sums, as toxic mortgage assets sold to the two have to be either bought back or compensated for. The government still runs the two companies.

Source

MSN

Selling bank loans as securities is not like selling used cars; if securities are defective, the seller must buy them back. Image from Wikimedia commons.

Part of what caused the collapse of the housing market was toxic mortgages. A loan lender or bank would lend a mortgage to a customer and sell the debt as an asset. Sometimes the mortgage went bad because of circumstances, and some were lent to people who shouldn’t have been lent bank loans in the first place. Many of these loans were sold to Fannie Mae and Freddie Mac, and when the assets went bad, Fannie and Freddie went into freefall. Few of these bad loans are being bought back by the banks that sold them.

Bad loans can be repurchased

It seems fair that if bad mortgages were sold on the market and seriously damaging the companies that bought the bad finance loans, those loans should be bought back. In fact, laws were passed that guaranteed loans had to be bought back by the seller if the loans in question went bad. Freddie Mac and Fannie Mae bought a lot of these mortgages. Because both of those companies are seriously in trouble, and the law is on their side, those toxic assets should be getting repurchased.

No redress of defective assets

However, the toxic assets are not being repurchased. In fact, according to USA Today, more than $11 billion in defective loans were returned by Fannie and Freddie to the institutions that sold them, only for the bank or loan company to refuse to purchase them. Of those defective loans, a third have been waiting to be addressed for at least 90 days. The backing for mortgage loans also was provided for by the Federal Housing Administration and the Veterans Administration.

Banks hurting themselves

A bank or loan company that refuses to buy back these loans is only hurting itself. Fannie and Freddie are being propped up with taxpayer dollars, and businesses as well as individuals pay taxes. That means that the longer the mess drags on, the more everyone has to pay, including bank executives and shareholders.

Sources

USA Today

Second-home mortgages used to be used for vacation homes, but now they are used for Buy and Bail. Image: Flickr/ rejohnson71

It’s called “Buy and Bail” — getting a second mortgage-guaranteed loan to buy a house before strategically defaulting on the first. Fannie Mae and Freddie Mac, two of the nation’s largest lenders, have taken actions to quash the practice, but it is still very common. Buy and Bail itself is not illegal, though some borrowers could be charged with fraud.

The basics of Buy and Bail

Buy and Bail what mortgage brokers are calling certain types of emergency loans. Homeowners apply for second mortgages and buy a second home. Once they have moved into the second house, they default on their first. Usually, the first house becomes the victim of strategic default. This practice allows homeowners to get a house and mortgage payments that are much less than their original mortgage before their credit is ruined.

The implications of Buy and Bail

Buy and Bail is an option that, more often than not, borrowers with large financial resources decide to take.

In order to qualify for the second loan, the family has to prove that they have the income and assets to pay both mortgages for the foreseeable future. Additionally, Fannie Mae and Freddie Mac have instituted a policy where the borrower has to have enough money in reserve to pay both mortgages for six months. Eventually, though, the first homes of Buy and Bail borrowers are ending up in default. This increases the stock of available homes on the market and deepens the housing crash. Typically, Buy and Bail homes are worth more than $417,000, meaning they are not likely to sell quickly.

The legality of Buy and Bail

Buy and Bail seems like a practice that should be illegal — an overnight cash advance for the well-off. The only way Buy and Bail can be prosecuted, though, is if the borrower lied on the loan application. If the borrowers were entirely truthful through the whole process, they cannot technically be prosecuted for Buy and Bail. The only thing that happens to a borrower who was entirely truthful throughout Buy and Bail is that their credit rating drops for seven years.

A guaranteed loan is good to keep you from bouncing checks. Image from Wikimedia Commons.

The functions of personal finance and high corporate finance are different, but believe it or not, the two are not completely dissimilar. The companies which need some guaranteed loans at some time, or at least a line of credit in case they need a short term loan are some of the biggest names out there. The Ford Motor Co. needed guaranteed loans from the government. Ford is getting out of debt in double quick time. Meanwhile, Freddie Mac and Fannie Mae need more guaranteed loans to stay afloat.

Guaranteed loans for Ford

During the worst of the recession, the Ford Motor Co. borrowed $23.5 billion to stay afloat and keep Ford from having to file bankruptcy and ask for bailout money. During the car bailout, Ford didn’t need any auto loans, but merely asked for lines of credit as a contingency. It turned out not that asking for emergency loans from the government at that moment panned out. While Chrysler and General Motors were figuring things out, Ford’s sales went up 22 percent, according to the Wall Street Journal. Sometimes just knowing you can borrow can give a boost of confidence; some people like knowing they can get a loan until payday if they really need it.

More guarantees needed for mortgage giants

Meanwhile, Fannie Mae and Freddie Mac need more guaranteed loans from the government in order to stay solvent. According to ABC, Freddie has lost about $6 billion for the second quarter of this year alone. The money hemorrhaging firm is asking for another $1.8 billion from taxpayers.The twin mortgage giants are struggling, and both have less than two years to get their affairs in order. That’s when Treasury Secretary Tim Geithner isn’t going to cut any more checks.

Fortune 500 companies have credit scores too

One of the motivations for Ford is that the credit rating for the agency improves as they pay off debt. Just like paying off a credit card improves your credit score, it works for big companies too.

Further Reading

Wall Street Journal

ABC

The AstraZeneca Seroquel trouble began with marketing for off label uses. From wikimedia commons.

British pharmaceutical company AstraZeneca has just reached a settlement with the Department of Justice over AstraZeneca Seroquel investigations.  The drug Seroquel, an anti-psychotic medication, has come under fire for being marketed for unapproved purposes.  The drugmaker has agreed to pay the Department of Justice $520 million in restitution.  It will hardly make them think about guaranteed loans to cover for the expense, as the drug itself sold about $4.9 billion worth last year.

AstraZeneca Seroquel marketed for wrong purposes

The qualms over AstraZeneca Seroquel were based on the drug being marketed for purposes other than those it is approved for. The DOJ also alleges there were physician kickbacks of payday cash for prescribing the drug for off-label purposes.  The drug Seroquel is quetiapine, which is used to treat schizophrenia and certain bi-polar disorders.  Physicians may prescribe a medication for an off-label use if they deem it appropriate. However, pharmaceutical drugs aren’t to be marketed for off label uses; the FDA considers that a no-no.

Off label uses of Seroquel

Part of the investigation is into whether AstraZeneca Seroquel was marketed for uses it hasn’t been approved for yet. According to the Wall Street Journal, AstraZeneca marketed the drug for off label uses, such as to treat Alzheimer’s Disease, aggression, post traumatic stress disorder, anxiety and depression.  The Justice Department believes the pharmaceutical giant also gave kickbacks to physicians to prescribe it for those purposes.  AstraZeneca set aside $520 million in October for the purposes of a settlement, but it denies the allegations.

Lawsuits pending

There are lawsuits pending against AstraZeneca concerning side effects of off label use of Seroquel.  Seroquel isn’t the first drug to be used off label; every drug has an alternate use, so the use of medication for off label purposes is actually somewhat widespread. For instance, aspirin works as a blood thinner and typically is used as a pain reliever, but it also is used for treating heart disease.  Many physicians prescribe medications for off label uses, and their use is perfectly fine. That said, the idea that physicians would prescribe medication not intended for a particular use for money when a better alternative is available is particularly troubling.

So what’s the impact?

Because the company put the money aside for an AstraZeneca Seroquel settlement months ago, probably not much will come of it.  The company will be complying with federal instructions and will disclose any payments to physicians.

This isn't what Benjamin Franklin looks like on the new 100 dollar bill. A less flamboyant Ben shares his space with fancy, color-changing images and watermarks. (Photo: Patriot Print Shoppe)

Whether you call them Benjamins, C-notes or simply that money that bears the face of the Founding Father who knew how to party, the United States’ new 100 dollar bill definitely makes counterfeit money operations that much more difficult. The U.S. government knows how smart counterfeiters have become, particularly with their use of the “Superdollar” counterfeit. Those are nearly impossible to distinguish with current technology, so new features have been added to the new 100 dollar bill – including a 3D security ribbon, color-changing Liberty Bell – to stand up to the Superdollar threat. These new 100 dollar bill features will join current anti-counterfeit elements like the Benjamin Franklin watermark, security threat and color-shifting 100, reports Geekosystem.

The new 100 dollar bill is easily verified

Both consumers and merchants including guaranteed loans companies shouldn’t have too much difficulty determining whether a new 100 bill is in fact THE new 100 dollar bill, straight from one of those mustard-colored $10,000 straps from a Federal Reserve Bank. According to a U.S. government press release, the new 100 dollar bill’s Liberty Bell images should change colors as the bill is tilted. It should change from a copper color to green, which makes it seem to disappear into a copper inkwell. According to Treasurer of the United States Rosie Rios:

“The new security features announced today come after more than a decade of research and development to protect our currency from counterfeiting. To ensure a seamless introduction of the new $100 note into the financial system, we will continue global public education of retailers, financial institutions and industry organizations to ensure that consumers and merchants are aware of the new security features.”

Receiving cash from payday loans? Look for the changing Liberty Bell!

For more information on the history of the $100 bill, here’s a useful link.

Related Video:

The Hank Johnson Guam remarks signal a fitting for a Dunce Cap. From Wikimedia Commons

Occasionally, someone says something that is so foolish, one thinks it has to be fake. Then it turns out to be true, turning the remark from stupid and seemingly non sequitur to tragically farcical.  Just such an instance occurred recently when U.S. Representative Hank Johnson (D – GA) remarked that if any more U.S. troops were stationed on Guam, or if it were to become any more overpopulated, the island would “tip over and capsize.” (I have a headache now.) There are no guaranteed loans big enough to fix what’s wrong with the thought processes behind that statement. No – this is not an April Fool’s Day joke. Something that weird has to be real.

No April Fool’s Joke here – real people said this

In the spirit of that remark, I thought I’d offer a small list of things that actual people said in real life. Things that are so outrageously dumb, it’s almost unbelievable someone would open his or her mouth and actually say it. Without further ado:

Bill Clinton

“That depends on what the definition of ‘is’ is.” – Pres. Bill Clinton

I think we all remember this gem. There are no words, only the sound of my brain exploding.  Clinton also had bragged at one point about raising Arkansas’ national rank in education from 50th to 49th, during his term as Governor. To make it worse, he was a Rhodes Scholar.

Dan Quayle

“The Holocaust was an obscene period in our nation’s history.” – Former Vice President Dan Quayle

There is endless debate over what the dumbest thing ever uttered by George Bush’s (the first – Papa Bush) Vice President was.  Never mind that he also didn’t know how to spell “potato” and surmised that because there may have been water on Mars that humans could breathe there.  He was the butt of many jokes at that time, which of course, brings us to:

Joe Biden

“You cannot go into a 7-Eleven or a Dunkin’ Donuts without a slight Indian accent. I’m not joking.” – Vice President Joe Biden

I miss Dan Quayle.  Obviously, liberals are lacking just as much as conservatives, and with all the right-wing blather about “liberal elitism,” I’m waiting in the wings for an intelligent candidate of either party.    I’d donate extra cash to their campaign.

Rush Limbaugh

“It’s sort of like hazing, a fraternity prank. That sort of fun.” – Rush Limbaugh, about the torture of detainees at Guantanamo.

I chose this from among his many gaffes, or outright racist outbursts.  Since we’re on the subject, honorable mention to Bill O’Reilly and the Loofah/Falafel incident. (One is a sponge, and the other is food.)

Jessica Simpson

“I know it’s tuna…but it says Chicken of the Sea.” -”Actress Jessica Simpson.

I think we’re all familiar with this.  I don’t think anyone ever believed she became famous or popular because of her mental acuity.

Think before you speak — it can end up haunting you

The internet age means that there is greater accountability. If you do or say something tragically dumb, it is that much more likely to get photographed, taped or quoted, and uploaded.

Michael Steele, on the right, has faced criticism for his spending. Image from Flickr.

Michael Steele, the head of the Republican National Committee, is continuing his high-flying, high-publicity controversy today with accusations of RNC money being spent on exotic dancers, private jets and gourmet catering. Just last month, Michael Steele faced accusations of over-spending the RNC budget on swank restaurants and private consultants. Today, Jonathan Strong of the Daily Caller posted his reading of the RNC federal disclosure records. Among other things, the Republican federal disclosure reveals that the RNC paid for an almost $2,000 trip to Voyeur West Hollywood — a “bondage-themed nightclub featuring topless dancers.” The debt repair for the Republican Party may take a while; Michael Steele has spent $109.6 million of the RNC’s money, while his fund raising efforts have brought in $96.2 million.

Voyeur West Hollywood may not have seen Michael Steele

Though Michael Steele is the head of the RNC and was in Los Angeles at the time of the Voyeur West Hollywood charge, the Republican National Committee is disputing that he actually visited the strip club. In the line immediately before the Voyeur West Hollywood charge, the Republican federal disclosure contains a matching payment to Erik Brown, who is a Republican direct mail consultant. No matter whether Michael Steele actually attended the event where $1,946.25 worth of “meals” were charged at Voyeur West Hollywood, as the RNC Chairman he had to approve the expense. The Republican National Committee is launching an internal investigation and requesting that the strip club reimbursement be returned to the RNC coffers.

Michael Steele’s other RNC expenditures

In addition to the $1,946.25 spent at the West Hollywood strip club, Michael Steele has been the head of the Republican National Committee during many other disputed expenses. A fund raising trip in California included a $9,099 bill at the Beverly Hills Hotel and $6,596 spent at the Four Seasons. Michael Steele has also used $17,514 worth of private planes and $12,691 worth of private vehicles in February. The Republican National Committee has responded to these allegations by saying that these expenditures are guaranteed loans – necessary for bringing in the high-dollar donations that the RNC relies on to fund their political activities.

Michael Steele angering some Republican National Committee Members

Michael Steele has been the head of the Republican National Committee since January of 2009. One large Republican party contributor was quoted saying Michael Steel “fancies himself a presidential candidate and wants all of the trappings and gets them by using other people’s money.” Michael Steele has also faced serious criticism for spending RNC money on high-end catering from Wolfgang Puck where previous heads of the RNC used Chic-fil-A. In April of 2009, the Republican National Committee passed a new rule that any checks from the Republican National Committee be signed by two officers.

If Michael Steele was present at the Voyeur West Hollywood dance club or not, the RNC federal disclosure makes it clear that the Republican National Committee is spending more money than it is taking in. At a time of economic downturn, many American Republicans are beginning to question if the Republican National Committee is spending fund raising dollars wisely.

Sources:
The Washington Post
The Baltimore Sun
Newsweek / The Gaggle

Sometimes, asking a complete stranger, such as Dear Abby for advice can be the best thing to do. Image from Flickr.

In 1956, when Pauline Phillips started the Dear Abby column, she answered questions on etiquette, manners, money and tough situations with a combination of common sense and gentle humor. Dear Abby quickly became a nationally known column, and Pauline Phillips was syndicated for newspapers across the country. While she was writing Dear Abby, Pauline had twin daughters – Jeanne Phillips and Eppie Lederer. Jeanne eventually took over Dear Abby, while Eppie started her own advice column, Ask Ann Landers. These two are no longer the only names in the advice column business, however. Now you can get advice specific to just about anything from relationships to credit counseling. So who are five advice columnists you may want to check out, other than Dear Abby?

1- Dear Prudence

Written by Emily Yoffe, Dear Prudence takes the idea of an advice column and gives it a bit of a real-world update. Prudence, like Dear Abby, is known for not putting up with a lot of “nonsense,” and every once in a while gets quite worked up over tough situations – up to and including family secrets and bad toupees.

Dear Prudence, much like Dear Abby, does tend to come down on the side of settling family differences and seems to be of the “fake it ’till you make it” camp. With her combination of humor and real-world examples, Dear Prudence is a good every-once-in-a-while read.

2- Miss Manners

Miss Manners is one of those columns that has been around forever. Perhaps it’s a bit old-fashioned, but reading Miss Manners is like chatting with Dear Abby’s grandmother. Always a fan of thank-you notes and proper etiquette she has the kind of sly wit that leaves you wondering if you were really just schooled that badly by a grandmother. Miss Manners will unfailingly teach you how to have the best etiquette, but sometimes she can be a bit short on real-world common sense.

3- Amy Alkon / Advice Goddess

A favorite of weekly alternative newspapers across the country, Amy Alkon is just about the opposite of Dear Abby. She is unfailingly down-to-earth and sometimes even a bit harsh. One of her recent columns included telling a woman that “while men like curves, they don’t like folds.” It’s sometimes tough to read, but Amy Alkon just says the things that advice columnists like Dear Abby tend to dance around.

4- Savage Love

One of the few guys to make it in the advice-column world, Dan Savage, author of Savage Love, answers questions that advice columnists like Dear Abby would round-file before they got halfway through. Not always safe for work, and sure to make you blush at some point, this sex-and-relationships column got its start in Seattle’s Stranger newspaper, and it lives up to that rough-around-the-edges history. Beyond the shock factor, though, Savage Love usually offers advice as good as guaranteed loans — telling people to get out of bad relationships, stay true to themselves and generally be good people.

5- The Green Lantern

While it’s not a traditional advice column, The Green Lantern is one of those columns that unfailingly comes up when someone needs advice about environmental matters. Like Dear Abby, this column makes it a point to cover everything from child rearing to relationships — plus several topics Dear Abby wouldn’t touch with a 10-foot pole. Solidly based in both science and common sense, The Green Lantern can give you a guiding star on remaining friendly to others around you and the environment at the same time.

Building on Dear Abby’s example

Dear Abby definitely started the modern advice-column movement, and reading her words of wisdom can still be helpful when you’re in a tough situation. Dear Abby isn’t the only advice column on the block anymore, though, and checking out a few other advice columnists can give a good counterpoint to Dear Abby’s long-appreciated work.

Dressed and ready for Starbucks

“I don’t carry a gun to kill people.
I carry a gun to keep from being killed.”

From “Why I Carry a Gun,” author unknown

Gun control is a controversial issue in America, and the current legal case over whether Chicagoans should have the right to carry handguns in public has fanned the flames for both pro-gun and gun control advocates. The Supreme Court is getting involved and people are wondering which states are open carry states, because as OpenCarry.org puts it, “a right unexercised is a right lost.” Of course, it may not be as easy to convince the masses of this as it would be to sell lawmakers on the value of guaranteed loans.

What states are on the open carry states list?

Currently, only six states completely prohibit open carry. The following states are listed as “Gold Star” open carry states by OpenCarry.org. This means that “generally preempted open carry is permitted on foot and in vehicles without a license; localities are generally preempted.”

• Alaska
• Montana
• Idaho
• Wyoming
• South Dakota
• Nevada
• Arizona
• New Mexico
• Vermont
• Kentucky
• Virginia
• North Carolina

These states are open carry states, but with some restrictions

• Utah
• North Dakota
• Minnesota
• Iowa
• Tennessee
• Mississippi
• Georgia
• Indiana
• Maryland
• New Jersey
• Rhode Island
• Connecticut
• Massachusetts

Other states may have their own open carry approximation. For instance, California allows open carry, but only in rural, non-incorporated areas. For more information, see this open carry states map.

Starbucks even has something to say about open carry laws

You wouldn’t normally associate the nation’s coffee house with open carry states or gun control, but Starbucks has become involved the debate over where people can carry guns, even though it has been against the company’s will. People had been coming to various locations with guns on their hips, which made some patrons nervous. Starbucks says that it adheres with state laws regarding open carry, but as a business, it does have the right to set its own policy regarding whether firearms are allowed inside. Money lenders or any other business will say the same.

Starbucks gun policy is something CEO Howard Schultz would rather not have to worry about, but The Brady Campaign to Prevent Gun Violence is demanding that Starbucks “offer espresso shots, not gunshots.” The coffeemaker’s Seattle office received a petition with 28,000 signatures on Wednesday.

Neither side of the gun control issue is giving ground

This is exactly what one should expect when issues like individual liberty and personal safety are involved. Open carry states will likely remain so, but businesses tend to respond to special interest groups, particularly if they get corporate sponsors on their side. Thus, don’t count on being able to carry a holstered gun into your local Starbucks anytime soon, even if you live in an unrestricted state.

Related Video:

Will the Washington Blade maintain Internet presence?

The demise of the newspaper began long before the recession, and it will continue afterward. Newspaper publishers are finding it harder every day to compete with digital media. Window Media, which was the country’s largest publisher of gay newspapers, has shut down.

Window Media published the Washington Blade, a Washington, D.C., publication that celebrated its 40-year anniversary last month. Window Media owned several other publications, too, including the Southern Voice and David, both based in Atlanta, The Southern Florida Blade and 411 Magazine.

A dramatic exit

Apparently Window Media employees didn’t see this coming, and they showed up for work Monday only to find the locks changed and notes saying the newspapers would no longer operate and they could come back Wednesday to collect their things.

Rumor has it the Small Business Association had given Window Media’s biggest stakeholder, Avalon Equity Partners, $38 million in guaranteed loans. When Avalon failed to come up with half that amount in private investments, the SBA placed Avalon in receivership.

Fuzzy details

SBA said Avalon was in receivership in February, and in July, Window CEO David Unger quit. There was some speculation that Unger was forced out by the SBA. It’s not clear exactly how Window media came to the decision that it should cease operations.

The Washington Blade staff reportedly will meet tomorrow to discuss a new venture, headed by the Washington Blade’s current editor, Kevin Naff. Members of staffs on the other Window-owned publications also have said they will try to continue to provide news on the gay communities in their areas.

State of the newspaper

Newspapers all over the country have been shrinking or shutting down in pretty high numbers for a few years now. The country’s biggest publisher, Gannett, completed huge layoffs this year.

This pattern will continue until newspapers can figure out a way to adapt their business models to capitalize on the Internet. It’s a rough transition for a very old industry, but necessary if news publications want to survive.

Guaranteed Loans and Santa Claus: They're not real!

There are no such things as guaranteed loans. (You kind of knew that when you asked.) But if you’re hoping to get cash today, it’s guaranteed that Personal Money Market can almost always find a lender to grant your wish on the very best terms available.

There are no guaranteed loans, but payday loans are easy to get

Although there are no guaranteed loans, payday lenders generally don’t run credit checks. You can usually get a payday loan even if you have bad credit or no credit at all. You can usually get a payday loan despite having financial problems. You can get a payday loan if you’ve filed for bankruptcy, had your wages garnished, lost your home or car in a foreclosure or repossession, or are getting a divorce.

Payday loans are probably the most easily accessible form of credit available today. At Personal Money Market, your application is very likely to be approved even though there are no guaranteed loans.

You must be a sane adult with a regular income

To get a payday loan, you usually must have a job with a regular income and you must have been employed for the minimum time prescribed by the lender. You must have legal capacity to enter into a contract, so you cannot, for example, be a minor. Nor can you be insane. (Insanity can be a problem for people who have reached the age of majority but still believe in Santa Claus, the Easter Bunny, and Guaranteed Loans.)

You must be a sociable person with a bank account

If you want an online payday loan, you have to have a bank account because online payday lenders deliver loan funds by electronic transfer. You usually have to know at least two people to get a payday loan, because lenders usually require personal references, although they generally don’t contact the references before making the loan. (References can be a problem for hermits, recluses, and other shut-ins, even when they have regular incomes and bank accounts.)

You mustn’t have too much of a good thing

Depending on whether your state has a “cooling off” law, you may not be able to get a payday loan if you’ve recently had too many in a row. Many state legislatures have determined that if there were were such things as guaranteed loans, too many people would become too deeply mired in payday loan debt all too quickly.

Some payday lenders obtain Teletrack reports

It bears repeating that payday lenders generally don’t run formal credit checks. Some, however, use Teletrack reports to make credit-risk assessments. Teletrack is not a traditional credit bureau, and unlike a credit check, a Teletrack check won’t show up on your credit report. Teletrack provides analyses of consumer credit histories based on information obtained from payday loan companies, furniture companies, vehicle financing firms, high-risk consumer finance companies, credit card companies, banks and credit unions, as well as public records.

Teletrack doesn’t make credit-worthiness decisions, but it provides information to payday lenders who may then use it to approve or deny loan applications. Teletrack is considered a consumer credit reporting firm and is governed by the Fair Credit Reporting Act.

You won’t get a loan if you don’t apply, guaranteed

So you see, there are no guaranteed loans, although you’re very likely to get a personal loan when you apply at Personal Money Market. If you need to borrow money now and know that you can pay it back on your next payday without having to borrow again, then apply today. Chances are your wish will be granted right away.

Apply for the Best Payday Loans HERE!

Image from Flikr.

A word to the wise, people: If you’re ever out shopping and someone marches into the store and says she’ll pay for $500 worth of merchandise for everyone, remember that sometimes people lie. Furthermore, if this happens to you, please exercise further common sense by realizing that if a stranger walks in and offers to buy clothing for you and then doesn’t follow through, you are not allowed to steal it.

A Burlington Coat Factory riot broke out on Tuesday when a woman emerged from a limousine at the store and told cashiers she had won the lottery and would spend up to $500 on everybody in the store. Guaranteed loans may be guaranteed, but promises from strangers have no such legal backing. I’m not sure who I think is crazier in this story: the woman who lied about winning the lottery and being able to buy stuff for everyone, or the people who caused a riot and started looting the store after they realized the stranger wouldn’t be funding their purchases.

Details on Burlington Coat Factory riot

It all started at a Burlington Coat Factory location in Columbus, OH. Though the fact that I first read about this in the Weekly World News made me wonder which was the real hoax, the story is confirmed in the Chicago Tribune and on MSNBC. As they tell it, a woman named Linda Brown rolled up to the store in a rented limousine Tuesday and “walked to a cash register and loudly announced she had won the lottery and would pay for each person’s merchandise up to $500,” police said.

She told people she had won $1.5 million. Customers started calling relatives and friends, and soon the store had to call in police officers to handle the crowd. Brown went to the bank to get the money to pay for everything, then came back empty handed. She hadn’t won anything and had no money.

And the crowd goes wild

Once customers found out they weren’t getting free stuff, the Burlington Coat Factory riot broke out as “Angry customers threw merchandise around and looted, leaving the store looking as though a hurricane had passed through it, police said,” according to MSNBC. Some customers took off with their merchandise without paying for it, and police are reviewing surveillance footage to find those people.

Announcing to a store that you will buy things for everyone and then not doing it isn’t a crime. However, receiving $900 worth of limousine services and not paying for it is. When the limo driver realized he wasn’t going to get paid, he turned Brown into the police.

Quite the rap sheet

Turns out, the woman who caused the Burlington Coat Factory riot has three outstanding warrants for aggravated menacing, misuse of 911 systems and causing false alarms. Interesting hobby.