Installment loans can be just as bad as payday loans

Payday loans has gotten such a bad name that most internet lenders are now doing installment loans instead -that's good right?  WRONG.  Take a look at what an installment loan made by Western Sky/CashCall will cost you:
$10,000 Loan: 84 monthly payments of $743.49  Total (are you ready for this):  $62,453!
$1,500 Loan (which is really only a $1,000 loan because they take a $500 "fee" upfront and put $1,000 in your account):  24 monthly payments of $198.19  Total:  $4,756

The good news is that Western Sky/CashCall is probably out of business due to recent lawsuits by the Consumer Financial Protection Bureau and several states (not Virginia):   http://tinyurl.com/lh2cz95

But many other loansharks will try and get you to borrow money and tell you that it's OK, this isn't a payday loan, it is an installment loan.  Don't buy it-remember that an installment loan is just as bad a deal if you cannot afford the payments and they charge outrageous upfront fees. 

Giving a bad loan a different name does not help. Here are the safeguards necessary to create a successful small-dollar loan market http://tinyurl.com/kr3dzle. 

Successful loan markets benefit borrowers and responsible lenders.

he final report in the "Payday Lending in America" series discusses the safeguards that are necessary to create successful small-dollar loan markets, - See more at: http://www.pewtrusts.org/our_work_detail.aspx?id=327397#sthash.dBfjJjFx.dpuf

he final report in the "Payday Lending in America" series discusses the safeguards that are necessary to create successful small-dollar loan markets, - See more at: http://www.pewtrusts.org/our_work_detail.aspx?id=327397#sthash.dBfjJjFx.dpuf

he final report in the "Payday Lending in America" series discusses the safeguards that are necessary to create successful small-dollar loan markets, - See more at: http://www.pewtrusts.org/our_work_detail.aspx?id=327397#sthash.dBfjJjFx.dpuf

Black Friday--be sure to take your lawyer shopping with you

Don't go shopping without your lawyer.  That is the message in today's marketplace.  Why?  Because no matter what you buy, you might be signing a lengthy agreement that you don't read (be honest) and in that agreement might be.....

"In an effort to ensure fair and honest public feedback, and to prevent the publishing of libelous content in any form, your acceptance of this sales contract prohibits you from taking any action that negatively impacts Kleargear.com, its reputation, products, services, management or employees... if a consumer violates the contract they will have 72 hours to remove your post or face a $3500 fine. If that fine is not paid, the delinquency will be reported to the nation's credit bureaus."

Read more about the couple in Utah that ordered something online, didn't get it, posted a complaint, were fined $3500 by the company and then had it placed on their credit report.  Now as a result, they are amassing rejection letters from lenders as they apply for loan to buy a new car and fix their home's furnace.http://www.kutv.com/news/features/gephardt/stories/vid_474.shtml

What if you sign an agreement that says they can take your children if you don't pay on time???

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Cashnet USA fined millions for shredding documents, ripping off servicemembers and filing false court documents

Wow!--shredding documents, deleting recorded phone calls with customers, withholding information (lying).  Is this the way a legitimate business behaves when visited by federal regulators?  It is when your are one of the biggest payday lenders in the U.S. 

The consumer Financial Protection Bureau ordered CashAmerica (also know as Cashnet USA)  to pay $19 million in fines and restitution for:

• Illegally overcharging  servicemembers
• Instructing employees to limit the information they provided to the CFPB about their sales and marketing pitches;
• Deleting recorded phone calls with consumers;
• Continuing to shred documents after the CFPB told them to halt such activities; and
• Employees manually stamped attorney signatures on legal pleadings, military-status affidavits, and consumer account paperwork without prior review

Read more here:
  http://www.consumerfinance.gov/newsroom/consumer-financial-protection-bureau-takes-action-against-payday-lender-for-robo-signing/

Give Consumers Fair Notice and A Chance to Bid on Their Own Debts

I love this idea!!:  Give Consumers Fair Notice and A Chance to Bid on Their Own DebtsWhen Banks Sell Defaulted Obligations to Debt Buyers. 
When a consumer falls behind on loan or credit card payments, the bank often “sells” the account to a debt buying company for a few pennies on the dollar. 
Debt buyers contribute nothing to society. Yet, they are allowed to obtain windfall profits by pursuing impoverished consumers for the full face value of such debts. This is unfair.

If you agree, sign the petition:
http://tinyurl.com/kdt47sv

A different kind of debt buyer

"A group of Occupy Wall Street activists"  bought almost $15 million of Americans' personal debt.  Then, they "send notes to their debtors “telling them they’re off the hook”.  http://tinyurl.com/pwzxjdp

How much did they pay for this $15 million of debt?  Just $400,000 or 2.5%

When creditors can't collect from debtors they frequently sell the debt to debt buyers who then try to collect the full amount. So, instead of debt buyers badgering debtors to collect $14 million, this debt is forgiven. 

Is debt buying a big industry?  $143 Billion!  And the Federal Trade Commission says the structure and practices of the debt buying industry need a lot of reform: See the January 2013 report: The Structure and Practices of the Debt Buying Industry.

These lucky debtors are off the hook but many more Americans will be hearing from the real debt buyers:  phone calls and lawsuits.

Better Choices for Virginia: A Message to Our Legislators

Today marked the public launch of the Better Choices for Virginia Coalition.  The Coalition is “a diverse group of Virginians committed to a stable and prosperous Commonwealth.”  Comprised of 27 Virginia organizations from public advocacy groups to business groups to think-tanks, the coalition is still growing.  For more information on Better Choices for Virginia, visit the website. 

The Better Choices campaign represents a desire to shift away from a “cuts-only” approach that further throws Virginia off balance without reasonable, thoughtful attempts to increase revenue in order to protect the diverse and numerous Virginians who have been harmed by destructive cuts in spending.  This morning, the Better Choices Coalition held a press conference to launch itself as a power in this conversation. 

Members of the Virginia PTA, The Commonwealth Institute for Fiscal Analysis, Henrico County School Division, and Mental Health America of Virginia provided both stories and hard facts in an effort to gain support for the coalition and its purpose of “protecting Virginia’s future prosperity.”  Virginia is at risk of depriving students of quality education, the ill of medication and care, and every Virginian of a long term plan designed to protect against the one-sidedness of a cuts-only approach.  For Michael Cassidy’s editorial calling for a shift in approach that includes balance and new revenue, visit The Virginian-Pilot online.

The Art of Complaining

The VPLC interns have created a resource list as a part of greater action plan for those dealing with faulty financial products.  This list is designed to provide consumers with the tools needed to lodge a complaint to the proper authorities.  The word “complaint” can have negative connotations, creating images of whining, nagging, and pestering, but issuing a complaint can be highly productive.  For those recovering from the negative effects of damaging financial services and products, it can be a tough ask to go on record with private issues and introduce them to the public forum.  But, one person’s complaint is almost definitely shared by others, and the more information that consumers have, the better.  The list offers advice on a range of actions from disputing a credit report to lodging a complaint with a government agency to telling one's story to increase awareness.  The how-to list can be found below.   

Issuing a Complaint to the Bureau of Financial Institutions (BFI)

Information on filing a complaint can be found at the SCC’s website at http://www.scc.virginia.gov/bfi/complain.aspx and to file complaints directed to the BFI visit  http://www.scc.virginia.gov/bfi/files/complaint_info.pdf for guidelines on submitting a written complaint. To check up on your complaint or make an additional inquiry, call 1-800-552-7945 (VA only.)

Issuing a Complaint to the Office of Consumer Affairs  

Issuing a complaint to the Office of Consumer Affairs can be done online at http://www.vdacs.virginia.gov/consumers/cgi-bin/complaints.cgi. There you will be directed to fill out a form with the subject matter of your complaint.  You will then be given the information (telephone number, mailing address etc.) of the organization that will field your complaint.  You may also call the hotline at the Office of Consumer Affairs at 1-800-552-9963.

Issuing a Complaint to Consumer Financial Protection Bureau (CFPB)

To issue a complaint with the CFPB in regards to foreclosures, home loans, mortgages, credit cards, student loans, land purchases or rentals from a developer, deposit accounts, other financial products or services, or even non financial products or services, visit the CFPB’s complaints portion of its site at http://www.consumerfinance.gov/get-help-now/consumer-questions-and-complaints/. To tell your story to this federal watchdog, fill in the tab at https://help.consumerfinance.gov/app/tellyourstory. Note that this is not a complaint form.

Disputing a Credit Report

To dispute a credit report, you must send a dispute letter.  For more information on where and how to send a dispute, visit http://myfaircredit.com/s/correcting-your-credit. For additional help and a sample dispute letter, visit http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm.

Internet Crimes

If you believe you have been the victim of internet fraud, go to http://www.ic3.gov to issue a complaint online.  Fill out the online form on the home page of the site.