The Huge Income of Payday Lenders Is Doom to End

There are around 12 million Americans who take out payday loan annually. It’s a huge and indeed a controversial business.

The U.S Consumer Financial Protection Bureau referred these loans as “debt traps” and has proposed new polices on Thursday to control the worst habits of the industry.

Typically, payday loans have interest rates of more than 100%. Obviously its way bigger than 15%-30% yearly interest rates over credit card debt. There’s also another type of loan that was first introduced in UK which help those who don’t have enough credit history or have a poor credit score which makes getting a loan tougher for them called as a guarantor loan. This loan allows one to take out a loan wherein a second person serves as a guarantor.

The stocks of America’s leading payday lenders sharply drop in a respond to the news of the added regulations in the business.

EZCorp (EZPW), the owner of the EZmoney loan stores, slumped around 6 percent on Thursday, and the Cash America (CSH), which operates Cash Land, Cash America and Pay Day Advance shops, tripped beyond 4%.

700% APRS charge by online payday lenders

New Policies – oftentimes, borrowers need to take out more loans in order to attempt to repay the original amount of loan. Under the suggested regulations, payday lenders will be needed to limit loans to a sum that people can payback without default or needing to borrow again. There’s also a 60-day “cooling-off” phase before anyone could process another loan.

Another rule that would prevent lenders from attempting to get access into someone’s checking account without prior notification. Moreover, lenders accessing of accounts more than 2 times in a row will not be allowed anymore. Charges often add up immediately when somebody doesn’t have sufficient cash in their account to settle the payment.

An analyst at Jeffries John Hecht called recommended new rules to be “more restrictive and tougher” that many had expected.

The collector of debt practicing the dirty work of the government

However some people propose the sell-off might be premature. Other than payday loans, these firms also do pawnshops and some other short-term monetary opportunities.

“In our personal view, this can have a positive effect for the publicly traded installment and payday lenders by pushing numerous smaller player out of the trade,” a note written by Guggenheim Partners to investors.

Guarantor loan

Image: bizjournals.com

Desperate Measures

Those taking out payday loans are usually at a terrible position in their finances.

“Payday loans can be deemed by many as easy money, but the truth is average borrowers tend to end up spending around 200 days of the year with debt. In case, they get around $500 loans at usual rates, they will turn to pay up over $1,000 in fees and interest rates,” President Obama said during his speech on Thursday.

Payday lending pierced in the result of the Great Recession. EZPW stock strike an increase of more than $38 in 2011 however has pulled back to trade below $10.

Payday lending spiked in the aftermath of the Great Recession. EZPW stock hit a high of over $38 in 2011 but has pulled back to deal below $10.

The Rise of Online Auto Insurance Policies

Brooklyn car insurance agent is among the jobs that are threatened by the advent of Internet.

Technology startups, and several insurance companies, are launching websites that sell and promote a wide variety of insurance policies such as auto, homeowners, and other commercial policies. These companies that promise huge savings through showing consumers price quotes that don’t have to shop from one site to another; these are putting great pressure on insurance agents who collect at least 10% from the payments of policyholders. (more…)

The People Need Innovative Lending Services

It is still too early to see the impact of the payday lending price cap since the new rules were just implemented on January 2, 2015 but some small players already left the industry while the main lenders such as Quickquid, Wonga, Payday UK and Uncle Buck payday loan direct lender are now charging the new price cap level. So, the annual percentage rates are not the usual 4,000% but limited to 1,200% even if the actual costs on a typical £200 payday loan for two weeks only dropped by 1 pound each week.

The consultancy Policis showed the experience of the US payday loan caps, they found out that the supply of credit has been limited but the demand has not been reduced. The online illegal lending is also booming, six out of ten loans were obtained through unlicensed or illegal lenders. With the price cap, the brick and mortar payday loan lenders in the US have moved online which the public is warned the online payday lenders will grow in numbers. This is true with the UK scenario, 80% of the payday loan market are online. The FCA accepted the fact that the new price caps would limit some borrowers’ access to finance and they hope that many people will count on family and friends for financial assistance. The research of the Policis suggests that the position of the FCA is not credible and warns the consumers of the UK on the developing illegal credit market. (more…)

CMA: Loans Are Not Competitive

According to the regulators, payday lenders have weaknesses, one of them is the lack of price competitiveness. This is the reason why customers may pay too much. In an investigation conducted by the CMA (Competition and Markets Authority), they found out that the lack of competitiveness can add an average of £30 to £60 to the bill of every customer each year. They recommended that there must be an establishment of an independent website for price comparison and will tell lenders to make the costs of borrowing clearer. The trade body of the lenders is supportive of this proposal too.

The CMA chairman said that getting a payday loan when money is tight should not compel borrowers to pay way too high than what is necessary. It should be noted that the average income of customers is similar to the entire population but in reality, access to credit options are not similarly offered to all, other people have limited options. In some cases, the borrowers who pay extra costs and charges are also those who can afford. The late payment fees are hard to predict and most of the customers cannot anticipate.

Getting a loan at any payday loan is not often a bad option, there are lenders that have clear policies to avoid misleading their customers like the QuickQuid, in fact, they have QuickQuid promo code to help every customer. Choosing this lender gives you options which are not offered by other loan companies, for instance, they do not require to instantly pay the loan in full with additional interest after two weeks. They are more flexible and give two payment schemes, for thirty days or sixty days. This strategy helps customers to avoid paying huge interest and other fees because of late payment.

(more…)

Japan Banks Develop Financial Easing

Bank of Japan sloped up its great financial easing program – sending off the yen dropping and stocks rising – in an unexpected shift aimed at enlivening growth just as the Federal Reserve coils down by its own stimulus extravaganza.

After a 1-day meeting, the policymakers shared that they would add around 20 trillion yen or $180 billion the recent buying system of the central bank, making it to 80 trillion yen every year.

The verdict send the yen falling to 110.90 over the dollar, levels which isn’t evident since January of 2008, whereas Nikkei 225 stock index of Tokyo increased over 5%.

The shift is said to be the first since the bank introduced its big bond-buying system in April of last year as part of the bigger plan of Tokyo to overcome times of deflation and have a good economic jumpstart.

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The decision on Friday throws into the spotlight the sharp contrasts of the fortunes for the Japanese and American economies following the Federal Reserved on Wednesday carried an end to the 6 years of bond-purchasing and takes into account an increase of interest rate.

Moreover on Thursday, the Commerce Departments told that the American economy spread out a yearly 3.5% in July-September getting expectations of around 3.0%.

On the other hand, the economy of Japan contracted 7.1% on a yearly basis in the second quarter. It’s sharpest quarterly fall since the 2011 quake-tsunami catastrophe – as it was beat by a sales tax climb in April.

That has fueled fear regarding another downfall in July-September, which technically would place the country in depression. A statement from BoJ said that the decision on Friday surpassed by a thin 5-4 majority votes.

The bank recognized that the sales tax hike had place in jeopardize its target of 2.0% rise by the following year, and said that made the decision on Friday rapid.

“The economy of Japan continued to get better as a trend and is deemed to still grow beyond its potential pace,” it said.

“But, on the charge front, somewhat feeble developments in demand after the expenditure tax hike plus a considerable drip in the rates of crude oil have been wielding decreasing pressure recently.

“If this recent downward pressure on rates continues, even if in the short run, there’s a risk that deflationary conversion mindset, which so far has been developing progressively, might be holdup.”

“Furthermore, in order to pre-empt manifestation of such risk and to keep the developing drive of expectation formation, the Bank judged it right to widen the qualitative and quantitative financial easing (QQE).”

After the official information arrived earlier on Friday illustrated the slowed inflation on September and household expenditure droop as people tighten their belts, the move came.

The BoJ is seemed to launch its view for the economy later Friday, in which could see it reduce its view.

The bank already has decreased its growth prediction for the fiscal year to March to 1.0% well reduces from a 1.5% prediction.

With regard to the best credit repair companies for those who have dirty marks on their credit history, making it impossible for them to acquire for any loans, one should pay attention on some essential details to ensure that they will end up with the right service provider. The best credit repair solution firm will not only get rid of those negative marks on your credit history but will also help you maintain it.

Property Owners Face Big Challenge Risk by Tenant

There are a growing number of property owners who prefer to let their properties by themselves instead of having an agent; however the available tools make it challenging to look for a good tenant between all the faceless strangers on the web, according to the co-founder of the property company Ekaya.com, Ruarka Ferreira.

“Dealing with property and occupant relationship can be demanding and a lengthy process,” he shared to Fin24.

Ekaya has been trying and developing its services in Cape Town and encloses up to now, yet has been searching at the national stage since the first day.

“Numerous individuals are now renting compared to before plus, they’re renting long-term. Ever since 2008, this trend has really stepped up as fewer people can pay to purchase property or take more time to get home ownership at least,” Ferreira said.

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“This fundamental trend has made the market of a property order with demand far exceeding production, making things very aggressive among tenants.”

Most of the properties that Ekaya works with are present on the market not more than 10 days (from the moment of listing to lease signing) plus the site experiences great interest from future tenants, usually 20 final applications for each property.

“We recognize the trend of the growing number of property owners opting to deal with their rentals by themselves against hiring an agent. It is greatly rooted in the fact that succumbs are strict on rental properties (6-8%) and the rental agents usually have 10% commission charge,” stressed by Ferreira.

Recently about 70% of the market prefer the DIY (Do-It-Yourself) model so to make the most of their incomes, however this comes with its own disadvantages, he notified.

The largest challenge that property owners will face is the tenant risk.

“Placing the wrong individual in your property can have severe connotations for your investment. One month of unsettle payment by a tenant can wear down your whole yield for the year and it can be hard, undesirable and usually a very costly process to get rid of bad tenant,” he said.

“Before, security deposits might have aided to alleviate some risks, yet the truth is the protection they give is insignificant. Current changes to the policy and law have made properly administering deposit of the tenants on a heavy affair and after the deposit is reduced, the property owner remains stuck in unlucky situations without any influence and asset that don’t produce any return at all.”

The best for property owner to do is to be litigious as the betting process is going on.

“Since the demand is very high, you will have a great interest for your property but the ploy is to score through the noise for you to get what’s right for you. Candidates who have a solid payment record and trusted references are good start however property owners must attempt and look at the entire picture and come up with an informed decision through utilizing the information and tools available,” he shared.

“You can make all by yourself, you must be wise about it.”

In his vision it is still a wonder to me to buy-to-let-investors.

“With such great demand, the rental prices increase by 10% on a yearly basis, which dramatically lessens the time it takes for rental return to go beyond the mortgage repayments transforming the property to an income-producing asset,” Ferreira clarified.

But in case you have the budget to buy a home, then Scottsdale AZ homes for sale are a must to check. They have a wide array of beautiful and strongly structured homes. So if you are looking for a good home deal, then this is definitely a catch!

UAE: On Financial Education

Ambareen Musa of UAE became a little frustrated because she bought a new car in Dubai and when she received her bill for her monthly payment, she was surprised with the amount. She was actually paying $140 more than her expected monthly installment and wanted to know the exact reason why.

She called the loan officer first and after looking into the issue, he couldn’t give an answer; even the manager didn’t know as well. After about 3 months, she decided to go to the head office and she was referred to the London headquarters, which is a very large international bank.

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She got her answer eventually and learned the difference between a flat rate and a reducing rate; this is primarily the reason why it is important to compare guarantor loans and understand their terms and conditions. With that, she realized that there is a lack of financial education in the UAE for which she said, “People didn’t understand the basics about money.”

And with that, she created a company. Entrepreneurs, like Musa, have that inkling need of solving this problem in the society. After working for 15 years in the banking sector as management consultant, she realized there is a great need to be educated the people of UAE about handling money.

Musa launched Souqalmal, which is “money market” in Arabic. Souqalmal is a comparison website that aims to help residents in UAE to save time and money in comparing loans, mortgages, credit cards, and other financial products; having a tagline that is, “Compare before you say ‘I do’”.

Musa said, “We want to build awareness, to help people understand finances and have a vision. We want to be the number one financial educator of the region.”

“Comparison is non-existent here, unlike in the US. The goal is to put the consumer in the driver’s seat. In America, there are sites that compare credit cards, loans, and other financial products, such as LendingTree, MoneySuperMarket, and Bankrate,” she added.

In her home country (the UAE), her primary goal is to generate awareness in a society that only has little financial transparency. Take for instance, there are 50 banks in the UAE, “Many people don’t understand the banking industry here, and the difference between certain terms,” Musa said, citing the previous example of the differences between reducing rates and flat rates.

Her timing is on the dot since there is greater focus on the issue as time goes by. As a matter of fact, there is also an urge in the region to teach the public, such as in Saudi Arabia, where she also launched Souqalmal. Her primary goal is financial education, teaching the society to read the smaller print and learning about hidden fees. She said, “You don’t know what you don’t know.”

Apple Sells Massive iPhones In the Last Quarter of 2014

In the last quarter of 2014, it is all about iPhone. At the beginning of 2015, Apple announced they have huge sales in the last quarter of 2014; they sold 74.5 million units compared to 51 million units in the last quarter of 2013. Also, in the last quarter, the company shipped their one-billionth iOS device. Together with the massive selling of iPhones, it is also expected that revenues hit record high. In the last quarter, they had a revenue of $74.6 billion and profit that reached $18 billion compared to 2013’s revenue of $57.6 billion and profit of $13.1 billion. Of the total revenue, 65% came from outside the US and $16.1 billion came from China alone.

With this, Apple’s cash on hand is a whopping $178 billion and after the news, their trading is up. To give you a break-down of their product line’s sales, here they are:

  • iPhones – sold 74.5 million units and a revenue of $51.2 billion
  • iPad – sold 21.4 million units and a revenue of $8.9 billion
  • Macs – sold 5.5 million units and a revenue of $6.9 billion
  • iTunes and apps – Earned a revenue of $4.7 billion
  • Others – Revenue of $2.7 billion

According to the CEO, Tim Cook, the earnings signalled the support of over 750 banks as well as credit unions for Apple Pay, 2015 is going to be the year of Apple Pay and there will be an enterprise partnership with IBM and developer adoption of Health Kit and hospital partnerships.

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On the other hand, CFO Luca Maestri said that the sales of iPhone doubled in the countries of China, Singapore and Brazil and the ASP of iPhone is $687 which leads to the 57% revenue growth. Also, they are working with about 375 carriers worldwide. The Mac sales have increased by 14% which can be translated into revenue of $6.9 billion while iPad sales went down compared to the figures of 2013 but still, it delivered revenue of almost $9 billion.

Considering the very high sales of the iOS device, this also means that this is the best time to develop internet marketing agencies. If you are interested on how to go about this matter, you will not have a problem as there are experienced and skilled people and companies to help you develop. One of the most influential people when it comes to helping digital teams is James Agate, the founder of Skyrocket SEO, they are delivering creative, consultancy and link building services. Skyrocket has an impeccable reputation in delivering valuable content, high-quality links and expert advice to achieve a long-term positive impact on your business, clients or search engine rankings.

Another venue to learn from the experts in today’s digital world is by attending the BHW Conference. You will gather insights from entrepreneurs, gurus and leaders who are shaping the industry’s future. The conference will also give you networking opportunities to take advantage of the increasing sales of mobile phones around the world; this may give your business opportunities to work on.

How to Ensure You Are Trading with a Legit?

The concept of Binary Options trading is so easy, you opt if an asset is going rise or fall within a fix time period and if you’re right, you get a fixed sum in the region of around 180%. In trading binary options, he or she thinks that the fundamental asset would end greater or lesser than the strike cost at the set deadline. This can be at the end of the closing hour, day, week or even month. Binary option trading is very flexible since it comes with numerous choices of a number of expiry dates, a mixture of underlying asset that will permit you to trade on the web.

If you as a trader think that the asset cost will increase, then you may select ABOVE and if you think that it will go down, then you may opt BELOW. The outcomes of the imminent forecast of the buyer would be stated on the expiration time.

Nowadays, online binary options have become extremely in demand in financial markets as these tools let the buyer to trade easily and without any hardships that can be experienced in offline trading options. High payouts can be attained in just less than an hour.

A lot of people these days are getting themselves involved in binary options trading to maximize their income without having to invest more. Binary options trade is away to have protected income. If you have the capacity of forecasting the price trend of any asset type, be it in a commodity, index, stock or currency, then your success is ensured. You must be very vigilant in trading, as great risk is involved. However, there’s no risk-free trading. So you should trade only if the risk can be manageable, but the income that you can get in binary trading is way greater than any other. Prior to taking any step, it is highly advised to take advices and suggestion from experienced brokers whose knowledge are advance and can aid you in making a profit.

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Opting for one is indeed a tough task, that’s why you need to do binary options comparisons. You should compare the services each has to offer, read on some review and check on the level of customer support.

Is A Career In Finance Right For You?

Accountants do much more than crunch numbers all day and their role is much more important to their company than many give them credit for. If you are good with numbers and want to enter the world of accounting, you’ll want to have at least a bachelor’s degree in accounting or a closely related field. Accountants that will have a distinct advantage are those that have professional recognition through certification, proficiency in auditing and accounting software, or a master’s degree.

Keeping business accounts up to date does represent one area of accounting, efficient businesses will aim to keep all of their public records and internal accounting records up to date. However, many accountants will usually start in situations where the books or finances may have been neglected or managed badly.

For any would-be accountants there are a variety of positions available in different sectors. Governments, charities and corporations fall under the umbrella of public accounting and typical tasks for an accountant in these sectors can include dealing with a fair amount of tax related matters, consulting and monitoring financial transactions. There can also be a degree of auditing involved, so this is a good area to aim for if you like variety.

If you enjoy working with big accounts and have the desire to break data down into the finest detail, working as an accountant for the government, national or local could be able to give you that opportunity. A lot of money across many different transactions can flow between government agencies and so require diligent accounting. An added advantage of working for a government department is that it can provide the chance to work within different departments, add variety and the opportunity to work with lots of different people.

If accounting isn’t quite what you are looking for, then a position as an internal auditor could be a viable alternative. Internal auditors verify the accuracy of records within a business, their processes and internal workflows. Often an auditor will get down to the tiniest detail of each and every record, transaction and action. When this information has been collated it can then be reviewed to make improvements on not only financial matters but also overall work force efficiency.

Accountants can often be found working predominantly in offices so if you are not taken by working indoors, in front of a computer or in an office it may not be the best suited career for you. The hours accountants work do vary from job to job but the average is usually around 40 hours a week.

Accountants and auditors also engineer internal control systems and analyze financial data. Others positions in which accounting training is necessary are appraisers, loan officers, budget officers, financial managers and analysts, bank officers, purchasing agents, actuaries, underwriters, tax collectors and revenue agents, FBI special agents and securities sales representatives.