Skint Students Make Ends Meet through Rip-off Loans

With more than 10,000 students entering universities each year, the National Union of Students made a study about students’ loan. The study had found that there are about more than 31,000 students who have resorted to rip-off payday lenders for them to make ends meet. Payday lenders have been the option of many students and many of them had able to get application through hakemukseen.

The same study revealed that 12% of students unable to cover the cost of living in the year 2014. This percentage reflects 633,500 of students who have hardly meet their needs while in the university. On the other hand, 563,000 students said that they had resorted to taking debts. In addition, there are around 26,400 students and 5,400 postgraduates who have resorted to payday lenders, which mean 31,800 students, have gone to payday lenders. This number equals to a town the size of Windsor.

The study also revealed that the North East has the highest rate of student payday borrowers with nearly 4%, next is Scotland with 3% and UK 1.4%. (more…)

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.

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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.


Consumer Financial Protection Bureau’s Proposal

This week, the Consumer Financial Protection Bureau did the most essential step in their short 4-year history. They finally released a preliminary proposal that is aimed to protect the working poor against the industry of payday lending. The payday loans direct lenders only promote themselves as the ultimate source of easy short-term loans yet they earn profits by trapping the borrowers into debt. If this will be finalized, the rules will protect millions of Americans from predatory and deceptive loans that can wreck the people’s fragile finances. The bureau can better protect the people if they close one loophole, will not allow some lenders to keep high-cost loans.

The bureau started working on this since 2013, after they received and started to collect complaints from borrowers who were victims of unreasonable fees as well as unauthorized withdrawals and other abuses. Also, the bureau released a study based on twelve million payday loans approved applications all over the country which clearly debunked the claim of the industry that they were approved to help people in need. Usually, the term of payday loans last for two weeks, to keep the needs meet until the next payday. However, the study showed that only 15% of borrowers were able to repay in full and do not need to borrow again. 1 in 5 borrowers defaulted, about two-thirds have renewed the loan up to ten times, these borrowers turned the short-term loan into a debt trap that lasts long-term. As a result, the debt grew as borrowers renewing the loan after another instead of paying in full, just like in traditional bank loans. About three-fifths of the studied cases revealed that borrowers ended up paying more than the original loan amount.

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The bureau started to collect complaints from borrowers since 2013

The next step is for the proposal to be under a panel review that will be responsible to gather comments coming from small businesses, then, they will report the findings of the bureau. As of today, the proposal will give two options for the short-term lenders. The first option will require them to confirm the ability of the borrower to pay which is based on his assets and obligations financially. The second option pertains to $500 loans or less, the lender can skip the assessment of the borrower’s ability to repay but should provide a repayment schedule which is affordable and limit the frequency of a borrower to take out a loan in a year.

In the proposal, the weak link is the second option since the requirement of the ability to pay is the ultimate bedrock of promoting fair lending in the industry. By offering the second option, it will give the payday lenders a chance to continue what they started and difficult for the regulating body to monitor indebtedness individually, to evaluate if the lenders have obeyed the rules.

A strong rule is a rule that will require payday lenders to evaluate the borrowers’ ability to repay. It should be done without exception and ensure that all approved loans have reasonable costs. With this, lenders will earn less profit.

Credit Repair Scam Targeting Latinos is Shut Down by the Court

From the request of the Federal Trade Commission (FTC), the company that posed as the FTC’s affiliate has been shut down by a court after marketing scammed credit repair services to Latino customers. This case and many more are prompting the industry to discuss about the increasing fraudulent activities.

This week, the Los Angeles District Court will obtain depositions as well as hear arguments whether to extend the injunction which halted the operations of the First Time Credit Solutions. This was the response of the court to the complaint brought by the FTC which marketed themselves as FTC Credit Solutions. Also, this credit repair company used false affiliation that they are connected with the FTC by selling scammed credit repair services to Latinos, claiming they are licensed by the FTC. They offered a guarantee to every customer of having a 700 or higher credit score for six months or even less and it can change negative reports. These are the major complaints of the FTC.

After many incidents involving credit repair companies, potential consumers must be extra cautious in finding a reputable one. There are many trusted companies like the one you can find in this website According to the director of the Bureau of Consumer Protection of the FTC, Jessica Rich, if a company claims that they are affiliated with the FTC or is using a name of FTC in order to target more customers who are experiencing difficult financial situations; then, it is appalling. She added that this fraudulent activity promised hurtful consumers of a fresh start, they are happy of the court’s decision as an initial step to end it for good.

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The complaints of consumers involving scammers who claimed they are affiliated by the FTC are increasing. In 2014, the figures reached 24 times than the reports in 2013 but most of the complaints involved scammers impersonating as officials coming from the IRS as one of the major identity theft schemes. The complaint of the FTC against the First Time Credit Solutions is generating various buzz in the industry of credit counselling. For instance, last week, the National Association of Credit Service Organizations (NASCO) issued a statement that says they will disassociate the members coming from the credit repair scammers.

In a statement released by NASCO, they support the efforts towards regulatory enforcement in rooting out bad actors who pose credit repair services’ legitimate providers and the behaviors of scammers are unlawful. They said, the FTC responded to the matter appropriately. NASCO is an organization that represents the industry’s professional credit repair and it promotes excellent standards and they put high emphasis on integrity and ethics as their code of conduct in serving customers.

Recommended Ideas on Building a Business Website

If you are currently running a business without making it a website, then you are losing great sales. You need to fit in to the trend these days. Consumers are looking for products and services online so you have to make sure that they recognize your business through your website. You website will be a tool for the consumers to get to know what you are offering them.

Determine the purpose of the website

It is through your website that people can transact with your company or business. You offer goods and services through your site and they will purchase using your site as well. Even their payments can be done through your business’ website. You should know this basic yet important purpose of your website.

Get a domain name

If you are wondering where to buy good domains, then make sure you come up with a domain name first. Apart from properly designing your website to beat other brands, you need to have a good domain name because this is what you will give to the people if they want to go to your website. Your URL must be memorable to the consumers and avoid getting complicated ones like those with numbers and very long words.

Moreover, you also need to determine what TLD or top-level domain to use like .com, .net and .biz. After such, see if the domain is still available for you to purchase it from domain registrars like Wix and GoDaddy, or domain sellers like

Get the right host

Your website will need a host to run it. This serves as a server that will give everyone an access to your site. There are many options to choose from and you can get information about them so you will end up with the right decision.

After doing the above steps, the remaining steps will come in handy. Start building your pages; optimize your website through internet marketing down to the maintenance of your website. You see, getting your small business its own website is not that easy but you need to take action because in the end, it will be you to harvest the profits.

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, 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.”