Some bad people out there
August 27, 2010 | customers | Comments (0)And Illinois Attorney General Lisa Madigan is after them.
Bank fees on rise
August 24, 2010 | Financial Reform Bill - CFPB, alternatives, customers | Comments (0)From the story:
Already, about 20% of banks in the country, including Fifth Third and TCF Bank, have moved away from providing free checking accounts, according to Michael Moebs, who runs an independent financial services research firm in Lake Bluff, Ill.
He and other banking experts predict that in coming months, consumers also will be hit with a number of other new charges and cost-saving restrictions as banks try to offset the billions in overdraft, credit card and other fees they are expected to lose. The changes are likely to include shorter grace periods for credit card payments, bigger minimum balances needed to qualify for free checking and higher fees on everything from certified checks to ATMs.
Debate brewing in Wyoming?
August 23, 2010 | Wyoming, customers | Comments (1)From the story:
According to a press release from the Wyoming Children’s Action Alliance and Kids Count, citing figures from the Wyoming Department of Audit, the amount loaned was about $26 million in 2000. That amount has increased each year, with about $92 million loaned in 2009.
The figures indicate that more and more people are coming up short in paying their bills, said Marc Homer, director of Kids Count in Wyoming.
“As times are getting tougher, you see people seeking out more desperate means,” he said.
Homer criticized payday loan companies for taking advantage of low-income people and charging outrageous interest rates, which ultimately trap people in debt and hurt children and families.
The news release said that the typical payday borrower ultimately pays $793 back for an initial loan of $325, and that 90 percent of loans go to people who have borrowed five or more times per year.
But Kevin Williams, the owner of Advance Cash Services here, said his business does not take advantage of people or charge unreasonable amounts, and that payday loan companies have gotten a bad rap.
The industry is growing because it provides a service that customers can’t get elsewhere, he said.
“We service a segment of the community that is ignored by the standard banking and credit card industries,” he said. “(The loans) offer a solution to a short-term problem that a family has.”
New credit card rules
August 23, 2010 | alternatives, customers | Comments (0)They took effect this weekend. From the story:
To begin with, consumers can expect their February credit card statements to have a new look, such as providing more information about how long it will take to payoff debt as well as contact information for nonprofit credit counseling agencies.
Hard to argue with that rule.
Opt in or out?
August 16, 2010 | alternatives, customers | Comments (0)Overdraft rules begin today.
More noise in Virginia
August 12, 2010 | Virginia, alternatives, customers, employees, industry | Comments (0)Seem to never end. Another city council pushes a 36% rate cap. From the story:
Ryan Harris, a spokesman for Cleveland, Tenn.-based Check Into Cash, which has a branch in Front Royal, said that his company does not offer payday lending in Virginia, but added that putting a 36 percent cap on short-term loans is unrealistic.
“[On an] annualized percentage basis, there’s just no way that anybody can offer the small, short-term loan on 36 [percent] interest,” Harris said. “That’s pretty much the long and short of it. That 36 percent, that’s just a truly unfair way to gauge a small-term loan.”
Unintended consequences cont.
August 10, 2010 | Arkansas, customers, industry | Comments (2)Arkansas essentially banned storefront lending last year. Guess what? Consumers go online for loans.
Boosting credit scores
August 10, 2010 | customers, industry, personal finance | Comments (0)Important in these tight credit days. From the story:
Pay Off Debt
If you’ve already tried to make the denominator bigger, it’s time to focus on making the top number smaller. Paying off debt is the best way to do that because you lower your total balance owed, you lower the total amount of interest you pay, and you improve your credit score at the same time! It isn’t as simple as it sounds, however, because you probably wouldn’t be carrying all that debt if you could pay it off, right?
Charge Less
The credit report doesn’t care whether or not you carry a balance when it calculates your utilization. It takes your statement’s closing balance, even if you pay it in full that same period. If you want to get a quick boost in your score, use your credit cards less or don’t use them at all. By keeping your statement balances lower, you lower your credit utilization without much effort. If carrying cash makes you concerned, or you simply love the feel of swiping plastic, use a debit card.
Consolidate Credit Cards
If you have multiple cards from one issuer, consider consolidating the newer cards into the older cards. You can do this by calling up customer service and asking if they offer this. Only do this if they keep the total credit limit the same. The goal of this move is to increase the average age of your revolving lines of credit without reducing your total credit limit, which will affect your utilization.
Elitism alert
August 5, 2010 | Financial Reform Bill - CFPB, alternatives, customers | Comments (2)The New York Times “Your Money” section has an article on avoiding overdraft protection. What percentage of consumers that need overdraft protection read the New York Times “Your Money” section?
Hearing tonight in West Des Moines
August 4, 2010 | Financial Reform Bill - CFPB, Iowa, alternatives, customers | Comments (0)Discussing limits on pawn shops and payday lenders. Here are the details:
Who: The Plan and Zoning Commission
When: 7 p.m. today in council chambers at city hall
Where: 4200 Mills Civic Parkway.
