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.