Poetry award – Sound Zine http://soundzine.net/ Tue, 07 Sep 2021 10:40:32 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://soundzine.net/wp-content/uploads/2021/09/cropped-icon-32x32.png Poetry award – Sound Zine http://soundzine.net/ 32 32 Horn, the Bice advertisements put to the test https://soundzine.net/horn-the-bice-advertisements-put-to-the-test/ https://soundzine.net/horn-the-bice-advertisements-put-to-the-test/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/horn-the-bice-advertisements-put-to-the-test/ Attack announcements in the high-profile race for Oklahoma’s fifth congressional district are making big claims. Democrat Kendra Horn stands alongside House Speaker Nancy Pelosi, according to an announcement. Republican challenger Stephanie Bice has sided with payday lenders, according to another. “Kendra Horn just doesn’t get it.” It’s a line of attack heard in almost every […]]]>

Attack announcements in the high-profile race for Oklahoma’s fifth congressional district are making big claims. Democrat Kendra Horn stands alongside House Speaker Nancy Pelosi, according to an announcement. Republican challenger Stephanie Bice has sided with payday lenders, according to another. “Kendra Horn just doesn’t get it.” It’s a line of attack heard in almost every commercial against outgoing U.S. Rep. Kendra Horn, D-Oklahoma City. “She votes with Nancy Pelosi almost 90% of the time.” According to ProPublica, this statistic is true. Since Horn took office, she has voted like Pelosi 86% of the time. But this is not a good measure. As a speaker, Pelosi rarely votes. In fact, she didn’t vote more than 91% of the time. Perhaps a better measure is how Horn’s record compares to that of his fellow Democrats in the House of Representatives. GovTrack in 2019 ranked Horn the ninth most conservative member out of 236 House Democrats. There is no doubt that Horn’s voting record is more liberal than Oklahoma’s four Republican representatives. But to link the ninth most conservative Democrat in the House to one of the most liberal – Alexandria Ocasio-Cortez – as another ad does, is incorrect. Note of this ad: misleading. As for Horn’s opponent, “Stéphanie Bice voted for payday lenders to charge 200% interest. Scandalous! an ad claims. The House Majority PAC targets Bice, a former Republican state senator who faces Horn on the ballot, for her support for the payday loan industry. Le Bice voted to allow payday lenders to offer additional high interest loans of up to $ 1,500 in 2017. The number 200% is the annual percentage interest rate. That’s over 17% per month. Former Governor Mary Fallin vetoed the bill, saying she believed loans could be a more expensive option for families when other payday loans were already available. “When Stephanie Bice needed the money fast, she turned to payday lenders to fund her campaign,” the ad says. contributions the year of the vetoed bill and about $ 5,000 last year. The statement is therefore true. However, the claim that Bice turned to industry when she needed quick cash for her campaign is overstated. Even before winning the GOP primary, Bice had raised hundreds of thousands of dollars. The ad gets a half-true rating.

Attack ads in the high-profile race for Oklahoma’s Fifth Congressional District are making big claims.

Democrat Kendra Horn stands alongside House Speaker Nancy Pelosi, according to an announcement.

Republican challenger Stephanie Bice has sided with payday lenders, according to another.

“Kendra Horn just doesn’t get it.”

It’s a line of attack heard in almost every commercial against outgoing U.S. Rep. Kendra Horn, D-Oklahoma City. “She votes with Nancy Pelosi almost 90% of the time.”

According to ProPublica, this statistic is true. Since Horn took office, she has voted like Pelosi 86% of the time. But this is not a good measure. As a speaker, Pelosi rarely votes. In fact, she didn’t vote more than 91% of the time.

Perhaps a better measure is how Horn’s record compares to that of his fellow Democrats in the House of Representatives. GovTrack in 2019 ranked Horn the ninth most conservative member out of 236 House Democrats.

There is no doubt that Horn’s voting record is more liberal than Oklahoma’s four Republican representatives. But to link the ninth most conservative Democrat in the House to one of the most liberal – Alexandria Ocasio-Cortez – as another ad does, is incorrect.

Note of this ad: misleading.

As for Horn’s opponent, “Stéphanie Bice voted for payday lenders to charge 200% interest. Outrageous!” an ad claims.

The House Majority PAC targets Bice, a former Republican state senator who faces Horn on the ballot, for her support for the payday loan industry.

Le Bice voted to allow payday lenders to offer additional high interest loans of up to $ 1,500 in 2017. The number 200% is the annual percentage interest rate. That’s over 17% per month. Former Governor Mary Fallin vetoed the bill, saying she believed loans could be a more expensive option for families when other payday loans were already available.

“When Stéphanie Bice needed the money quickly, she turned to payday lenders to fund her campaign,” says the advertisement.

Bice, like many Oklahoma politicians, accepted campaign contributions from payday lenders and those lobbying on their behalf. We found about $ 1,000 in contributions in the year of the vetoed bill and about $ 5,000 last year. The statement is therefore true.

However, the claim that Bice turned to industry when they needed quick cash for their campaign is overstated. Even before winning the GOP primary, Bice had raised hundreds of thousands of dollars.

The ad gets a half-true rating.

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Google has said it will ban all payday loan ads. This is not the case. https://soundzine.net/google-has-said-it-will-ban-all-payday-loan-ads-this-is-not-the-case/ https://soundzine.net/google-has-said-it-will-ban-all-payday-loan-ads-this-is-not-the-case/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/google-has-said-it-will-ban-all-payday-loan-ads-this-is-not-the-case/ In May, when Google announced it would ban all payday loan advertising through its AdWords service, Consumer Advocates were delighted. “The ban on predatory payday loan ads shows that Google is ready to put people before profits,” exclaimed Wade Henderson of the Leadership Conference on Civil and Human Rights. But months after the policy is […]]]>

In May, when Google announced it would ban all payday loan advertising through its AdWords service, Consumer Advocates were delighted. “The ban on predatory payday loan ads shows that Google is ready to put people before profits,” exclaimed Wade Henderson of the Leadership Conference on Civil and Human Rights.

But months after the policy is implemented, brokers who link borrowers to payday lenders are still buying Google ads. They seem to have easily circumvented corporate rules, leaving consumers still vulnerable to the traps of high cost debt that can ruin their financial lives.

Under Google’s rules, which went into effect in July, advertisers for what they call “personal loans” can be banned if they demand full repayment in 60 days or less, or if they have an annual percentage rate (APR ) greater than 36%. This eliminates all payday loans, which are usually due within two weeks and have an APR of well over 300%.

The terms of the loans should be stated in a disclaimer on the site. The policy applies to direct lenders as well as those who put borrowers in touch with third parties. “We want to protect our users from deceptive or harmful financial products,” Google’s rules say.

But today, a simple Google query for “payday loans” yields a number of paid links at the top of the search, from companies like GOInstallmentLoans.com, WeLend2U, and QuickLoanTree.

A screenshot of Google’s payday loan ads.

Image: Google

They are not payday lenders, but what are called “lead generators”. They take consumers’ personal information, build a credit history, and then sell the file to payday lenders, depending on the type of loan they can afford. Lead generators can get up to $ 200 for a good lead.

“Hiding behind lead generators allows breakdown companies to bypass state law,” said Jordan Birnholtz, co-founder of PawnGuru.com, a website that connects consumers and pawn shops. Birnholtz first discovered lead-generating ads because he tracks keywords to see how users get to his site.

Lead generators are covered by Google’s policy. But the warnings from the various companies are almost comically vague. “Rates start as low as 6.59% -35.8%”, the “Fees and interest»On GoInstallmentLoans.com. But “For those who do not meet the minimum conditions for a personal loan, alternative loan solutions may be offered”, where the above rates do not apply. This negates the whole purpose of posting tariffs.

Governance

A loan ad from GoInstallmentloans.com.

Image: goinstallmentloans.com

QuickLoanTree advises that it “cannot guarantee any APR”. He nevertheless says: “The maximum annual percentage rate (APR) is 35.99%”, but quickly adds that “the lender can provide an APR that is different from our range”. Success loans, a separate lead generator, uses the same language.

QLT

An explanation of Quick Loan Tree’s APR policy.

Image: Quick loan tree

WeLend2U advises that consumers “may be offered loans with APRs below 36% and payment terms ranging from 61 days to 60 months or more.” But it does not guarantee these rates, and further in its terms and conditions it adds, “The lender determines all fees and rates based on the information provided in the registration form”, making the rates they display without relevance.

welend2u

Welend2u Loans APR Policy.

Image: WeLend2U.com

CashAnytime, another lead generator, said the same that consumers can get a 36% APR loan due in more than 60 days, but “not all lenders can provide the maximum amount or the terms advertised.”

Cash anytime1

The policy of Cash Anytime.

Image: Cash anytime

Alone BadCreditLoans is close to meeting Google’s standards, claiming that borrowers “can” get loans on terms that meet Google’s policy guidelines. They are the only site to prominently display a representative example of the total cost of the loan, as required.

Bad-Credit-Loans

An advertisement for Bad Credit Loans.

Image: Badcreditloans.com

“Although things have improved, it seems that some [lead generators] are, as you might expect, trying to bend the rules, ”said Gynnie Robnett, campaign manager for Americans for Financial Reform, a coalition of consumer groups.

This is extremely common for the payday lending industry, whose business model relies in part on bypassing regulatory barriers to get high-cost loans into the hands of clients. Payday lenders have claimed exemptions from state laws because they operate on sovereign tribal lands; they sold loans online inside the breakdown windows to bypass government interest rate caps. It is only natural that they use similar tactics to circumvent the internal rules of a private sector company.

In a statement, a Google spokesperson said, “We continue to implement our policy and will take action against advertisements and advertisers that are not in compliance. These actions include removing ads and permanently banning advertisers from using AdWords. “

The company also claims that more than 3 million offered ad placements have been turned down since they implemented the policy change, and thousands of advertiser accounts have been suspended or sanctioned. According to Google Blog, in 2015, they disapproved of 780 million ad placement ads offered for a range of abuses, including phishing scams and counterfeiting. “We always update our technology and policies based on your feedback and work to stay one step ahead of scammers,” Google writes.

But despite these attempts, the lead-generating ads that advertise on Google are almost defiant in their obvious attempt to sell expensive payday loans to consumers. Their disclaimers are self-negative and do not commit them to serve any type of loan to a borrower.

“If Google wants to maintain this policy, it should maintain it,” said Jordan Birnholtz of PawnGuru. “It is not a difficult task to look at a few pages on the website.”

According to data from PawnGuru, millennials who use alternative financial products are three times more likely than other age groups to start their research online; Birnholtz says the ads target young people with low financial literacy. And with Google, the dominant search engine for Internet users, adherence to their policies largely dictates the ads Americans see.

Under Google policy, individuals or consumer associations can report ads that violate their standards. But as of October 5, lead generator ads with questionable warnings were still running.

Advocacy groups that supported Google’s policy change continue to support them. “We expect some in the troubleshooting industry to try to play with the system,” said Scott Simpson of the Leadership Conference on Civil and Human Rights. “Google is doing the right thing; predatory lenders continue to be predatory.

Top photo: The Google logo is on display at the company’s headquarters on October 18, 2007, in Mountain View, California.

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Google’s advertising ban puts payday lenders on the defensive https://soundzine.net/googles-advertising-ban-puts-payday-lenders-on-the-defensive/ https://soundzine.net/googles-advertising-ban-puts-payday-lenders-on-the-defensive/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/googles-advertising-ban-puts-payday-lenders-on-the-defensive/ Google made headlines announcing a payday loan ban announcements from July 13. Quick fix loans charging triple-digit rates seem to be viewed by Google and others with the same social stigma as other dangerous products banned from advertising, such as cigarettes. So, can the payday loan see any kind of redemption? Not likely anytime soon. […]]]>

Google made headlines announcing a payday loan ban announcements from July 13.

Quick fix loans charging triple-digit rates seem to be viewed by Google and others with the same social stigma as other dangerous products banned from advertising, such as cigarettes.

So, can the payday loan see any kind of redemption? Not likely anytime soon.

In June, the Consumer Financial Protection Bureau is expected to roll out new federal rules to tackle blatant practices involving short-term lending. After regulators hold a three-month comment period, the landscape may change. A few think that a new alternative loan could come up.

President Obama’s administration has targeted payday loans, among other questions, about its regulatory agenda.

The Consumer Financial Protection Bureau will hold a field hearing on June 2 small dollar loans in Kansas City, Mo. Small dollar loans may have annualized interest rates in excess of 300%. The proposed rules for payday loans, auto title loans and certain installment loans are expected to be published in Kansas City.

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AG’s office lists top 10 categories of consumer complaints | Local News https://soundzine.net/ags-office-lists-top-10-categories-of-consumer-complaints-local-news/ https://soundzine.net/ags-office-lists-top-10-categories-of-consumer-complaints-local-news/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/ags-office-lists-top-10-categories-of-consumer-complaints-local-news/ The consumer division of the Tennessee attorney general’s office on Tuesday announced the top 10 complaint categories for 2020. The Consumer Division received 4,053 complaints in 2020. The DCA recovered both services and funds for Tennessee by working with consumers and businesses, according to a statement from the attorney general’s office. Overall, the number of […]]]>

The consumer division of the Tennessee attorney general’s office on Tuesday announced the top 10 complaint categories for 2020.

The Consumer Division received 4,053 complaints in 2020. The DCA recovered both services and funds for Tennessee by working with consumers and businesses, according to a statement from the attorney general’s office.

Overall, the number of consumer complaints decreased slightly in 2020 compared to 2019, when 4,250 complaints were investigated by the DCA.

“Division staff strive to escalate complaints quickly so that appropriate action can be taken in cases where deceptive business practices, fraud or scams are identified,” the press release said.

TOP 10 CATEGORIES OF COMPLAINTS

The 10 main categories of complaints recorded by the DCA are:

1. Home improvement, home repair, home warranty: 497 complaints

Home guarantees, as well as the hiring of a contractor for the repair or improvement of the quality of a home. The most common complaints relate to the quality of work, incomplete work after receipt of payment and structural damage caused by employees or companies. Most complaints are referred to the Tennessee Board for Licensing Contractors.

2. Price abuses: 343 complaints

Complaints alleging unreasonable price increases on essential items such as groceries and medical supplies. Price increases are usually taken into account by evaluating several factors, including pre-existing price agreements and cost increases by suppliers.

3. Personal / professional services: 329 complaints

Services provided by professionals working in Tennessee including hairdressers, massage therapists, locksmiths, exterminators, photographers, surveyors and more. Common complaints include quality of service, missed service charges, and problems redeeming gift certificates for services offered. Complaints in this category are sometimes referred to the Division of Regulatory Boards of the Tennessee Department of Commerce & Insurance and the Tennessee Board of Professional Responsibility.

4. Owner / tenant: 289 complaints

The most common complaints relate to security deposits and rental property conditions. These complaints are usually referred to city and county building code enforcement and the state fire marshal’s office.

5. Internet sales: 281 complaints

Consumer dissatisfaction with items or services purchased online. Common complaints include refund and return issues, or the product or service is not provided after payment. Often times, the product or service has been solicited by email or social media ads. The Consumer Affairs Division is working to mediate these complaints.

6. Sale and advertising of used motor vehicles: 266 complaints

Consumer dissatisfaction with the purchase of used vehicles. Disputes over the condition of the vehicle and deception regarding sale, advertising and title are the most common complaints. Consumer Affairs works closely with the Tennessee Motor Vehicle Commission in this category. Additionally, complaints can be referred to the National Highway Traffic Safety Administration and the Tennessee Department of Revenue.

7. Health products and services: 228 complaints

Complaints include inaccurate billing services and wrong quotes. The DCA can arbitrate complaints or refer the appropriate complaints to the Tennessee Department of Health.

8. Debtor / creditor: 225 complaints

The category includes matters related to debt collection companies, payday loans, credit repair companies and check cashing services. Consumers are reporting harassing phone calls or billing issues. These complaints are often referred to the Tennessee Department of Financial Institutions and the Regulators Division of the Tennessee Department of Commerce and Insurance.

9. Timeshare / vacation clubs: 223 complaints

Complaints relating to the purchase of a property under a timeshare agreement and the sale of such agreements. The most common complaints relate to pressurized sales tactics, false contract statements and resale scams. The division often refers these complaints to the Tennessee Real Estate Commission and the Tennessee Board of Professional Responsibility.

10. Travel: 183 complaints

The category includes consumer disputes involving travel-related issues such as hotel or cabin rentals. Many complaints were about reimbursement requests due to COVID-19.

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Google will require proof of identity from all advertisers https://soundzine.net/google-will-require-proof-of-identity-from-all-advertisers/ https://soundzine.net/google-will-require-proof-of-identity-from-all-advertisers/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/google-will-require-proof-of-identity-from-all-advertisers/ In order to combat fraudulent or deceptive online ads, Google will require all advertisers in its sprawling network to prove who they are and where they operate, the company said. in a blog post Thursday. The names of the companies or people behind the ads, along with their countries of origin, will begin appearing on […]]]>

In order to combat fraudulent or deceptive online ads, Google will require all advertisers in its sprawling network to prove who they are and where they operate, the company said. in a blog post Thursday.

The names of the companies or people behind the ads, along with their countries of origin, will begin appearing on Google ads this summer, starting with several thousand advertisers per month in the United States before expanding into the whole world. The measure, which could take years to implement, is designed as a defense against businesses and individuals who misrepresent themselves during paid online promotions, Google said.

The move comes as Google tries to crack down on misinformation and scams linked to the coronavirus pandemic. It expands a 2018 validation policy focused on political advertisers running election ads.

The expanded policy “will help support the health of the digital advertising ecosystem by detecting bad actors and limiting their attempts to portray themselves in a false light,” wrote John Canfield, who manages the integrity of the digital advertising industry. ads for Google, in the blog post.

In the past, Google has cited predatory behavior by companies that tout payday loans, bonding services, and third-party tech support, often banning advertisements outright. In September, Google said it removed more than 3.2 billion ads that violated its advertising rules in a year, or more than 100 bad ads per second.

Under the new policy, Google will suspend the accounts of advertisers who fail to provide proof of identity, including W9 forms, passports, and other personal identification and business incorporation files. Previously, Google had requested basic information, like names, but did not need documentation.

“Who doesn’t want a more truthful Internet, especially with the rise of fake news, fake businesses and fake masks? Said Douglas Rozen, media director for digital advertising agency 360i. “The inevitability of this makes sense in today’s environment. “

As regulators try to push back unsubstantiated claims on coronavirus treatments, and as troll farms prepare to influence the 2020 elections, tech companies are stepping up their defenses. This month Reddit updated its political advertising policy require advertisers to provide proof of identity to their sales team.

Google stepped up efforts to clean up ads after discovering that websites spreading false information about the 2016 presidential election were making money selling ads through the company’s ad networks.

At the end of 2016, Google launched its AdSense advertising system to hundreds of publishers. Two years later, political advertisers had to verify their identity before allowing them to purchase campaign ads. The move came after Google revealed to Congress that it had accepted nearly $ 5,000 in advertising during the election cycle from the Internet Research Agency, a Russian company accused of interfering in the race.

More recently, Google has been playing cat-and-mouse with advertisers trying to get around its ban on ads that take advantage of shortages caused by the pandemic. Even though Google has said it picks up millions of problematic virus-related ads per day, its networks have still failed to get a handle on many more.

“There is a lot of money in Google ads; it’s easy for someone to create an advertising account and start pouring money into their system, ”said Jared Moré, digital marketing consultant.

Mr Moré, who has worked with healthcare companies for almost 20 years, said he has seen a lot of sketchy behavior, especially when it comes to search results and ads for drug and alcohol treatment centers. In 2018, Google started requiring advertisers in this category be certified as drug addiction service providers.

Expanding the verification process is a necessary step, he said.

“This shouldn’t be a problem for 99% of advertisers,” he said. “It will only be difficult for people who maybe do something unscrupulous.”

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Google bans AdWords ads for payday loans https://soundzine.net/google-bans-adwords-ads-for-payday-loans/ https://soundzine.net/google-bans-adwords-ads-for-payday-loans/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/google-bans-adwords-ads-for-payday-loans/ Last week, Google Inc. (“Google”) announcement its plan to ban AdWords ads for payday loans and related products. How will the ban affect your AdWords advertising campaign? AdWords Advertising Program Terms and Rules Google’s advertising programs, including Google AdWords and Google Display Network, are heavily regulated. The Google Inc. adware terms and AdWords Rules contain […]]]>

Last week, Google Inc. (“Google”) announcement its plan to ban AdWords ads for payday loans and related products.

How will the ban affect your AdWords advertising campaign?

AdWords Advertising Program Terms and Rules

Google’s advertising programs, including Google AdWords and Google Display Network, are heavily regulated. The Google Inc. adware terms and AdWords Rules contain a wide range of restrictions on users’ advertising practices and ads placed through the Google network. These include a number of content-based regulations for display and AdWords ads, including restrictions for ads featuring

  • Adult content;
  • Alcoholic beverages;
  • Game related content;
  • Health related content; and or
  • Copyrights / trademarks of third parties.

Google’s AdWords policy team may suspend or cancel the advertising campaigns of advertisers suspected of violating these terms at any time.

Next ban on AdWords ads for payday loans

Google Global Product Policy Director David Graff announced last Wednesday that Google’s advertising systems (e.g. Google AdWords, Google Display Network) will ban ads for loans:

  • require reimbursement within 60 days of the date of issue; and or
  • with an APR of 36% or more.

The new policy is expected to come into effect on Wednesday July 13, 2016. According to Graff, Google’s ban on payday loan ads “will not affect businesses offering loans such as mortgages, car loans, student loans, business loans, [or] Revolving lines of credit (for example, credit cards). “

To help! My AdWords advertising campaign has been suspended!

In our experience, it is not uncommon for the Google AdWords policy team to suspend an advertiser’s AdWords account without warning – and with little or no stated justification – for alleged violations of AdWords rules or of Google Inc.’s advertising program terms.. Once the Settlement Team has imposed such a suspension, it is essential that affected advertisers take appropriate corrective action, submit well-drafted appeal correspondence and, if necessary, contact Google Legal through the channels. appropriate. A digital advertising lawyer with experience in resolving Google AdWords disputes can be an invaluable asset throughout this process.

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CFPB to Relax Strict Pending Payday Loan Rules https://soundzine.net/cfpb-to-relax-strict-pending-payday-loan-rules/ https://soundzine.net/cfpb-to-relax-strict-pending-payday-loan-rules/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/cfpb-to-relax-strict-pending-payday-loan-rules/ Washington report – The country’s new consumer finance watchdog on Wednesday proposed to significantly ease the stringent pending rules on payday loans and other short-term loans designed to prevent lenders from taking advantage of cash-strapped Americans. Kathy Kraninger’s proposal, who became director of the Consumer Financial Protection Bureau in December after being appointed by President […]]]>

The country’s new consumer finance watchdog on Wednesday proposed to significantly ease the stringent pending rules on payday loans and other short-term loans designed to prevent lenders from taking advantage of cash-strapped Americans.

Kathy Kraninger’s proposal, who became director of the Consumer Financial Protection Bureau in December after being appointed by President Trump, would remove key provisions requiring lenders to determine whether borrowers can repay short-term loans.

For memory :

1:00 p.m. 6 February 2019

An earlier version of this article indicated that new salary rules for Obama candidate Richard Cordray had been proposed. In fact, they were enacted and were to come into effect in August.

Financial industry officials pushed to change the rules and applauded the announcement. Consumer advocates have called it a “gift to payday loan sharks.”

The bureau’s proposal to revise the rules “suggests there was insufficient evidence and legal support for mandatory underwriting arrangements.” adopted in 2017 as Obama Richard Cordray, according to an office Press release. These would be the first federal payday loan rules.

Kraninger also wants to postpone the effective date of the repayment capacity provisions, set for August, to November 2020. However, the office decided to move forward in August with the implementation of the rest of the provisions. 2017 rules pending a Texas court ruling that had delayed all of the regulation. The other rules set new limits for lenders who withdraw payments from customers’ bank accounts.

“The bureau will assess the comments, weigh the evidence, and then make a decision,” Kraninger said of the rule review effort, which begins with a 90-day public comment period. “In the meantime, I look forward to working with other state and federal regulators to enforce the law against bad actors and encourage strong competition in the market to improve the access, quality and cost of credit. for consumers. “

The repayment capacity provisions “would impose substantial burdens on the industry, severely limit product offerings from lenders, and severely restrict consumer choice and access to credit” in states that allow payday loans and other short-term loans, such as those secured by a vehicle title, according to the Regulatory Proposal Office’s notice released Wednesday.

Payday loans are allowed in California and 32 other states, with the rest banning them.

It is estimated that 12 million Americans take out payday loans each year from websites and approximately 14,000 stores. Loans are typically cash advances of a worker’s salary for two to four weeks and have a flat fee of 15% or an interest rate that doesn’t seem particularly high.

But costs can quickly add up if the loan is not repaid, and the effective annual interest rate is actually 300% or more.

Rules passed in 2017 would require payday lenders to pre-determine the ability of potential borrowers to repay short-term loans of 45 days or less. If the short-term loan period expires and the debt is not repaid, borrowers may face painful charges or be forced to refinance the loan, creating what consumer advocates see as a debt trap. .

The ability to pay provisions are “the heart and soul” of the new regulations that were drafted after extensive research, Cordray said Wednesday in an interview.

“You have to reasonably assess that these loans will work before you make one,” he said, noting that Congress has put in place similar restrictions on mortgages and credit cards. “Rolling it back would mean exposing hundreds of thousands of people to massive damage of the kind we have documented every day across this country. “

Cordray rejected the argument that the rule would restrict consumers’ access to credit.

“It restricts access to irresponsible credit. It seems like a reasonable step, ”he said. “The industry thinks it will hurt them because they give a lot of irresponsible credit. They make a lot of money with it and they don’t want to give up that money.

The office took several years to craft the rules, so federal law requires detailed reasoning to change them. The bureau explained its rationale for eliminating repayment capacity warrants in a 171-page file that will appear in the Federal Register, and argued for postponing the implementation of the rules in another 29-page document.

Mick Mulvaney, Acting White House Chief of Staff, who replaced Cordray on an interim basis, joined two industry trade groups to get a federal judge in November to postpone the August effective date for the entire rule due to potential changes that he wanted to bring.

Mulvaney received $ 65,750 in campaign contributions from payday lenders when he was a Republican congressman from 2011 to 2017, according to the non-partisan Center for Responsive Politics. Consumer advocates complained he was biased towards the industry, but Mulvaney said he would not be swayed by the contributions.

Kraninger, a former Mulvaney aide in the White House, was appointed by Trump last year to be the permanent director. After being confirmed by the Senate and accepted the post, she said she would not be Mulvaney’s puppet.

A troubleshooting industry trade group complained that the 2017 troubleshooting restrictions would hurt consumers and said it was satisfied, but not entirely satisfied, with Kraninger’s proposal.

“Under the leadership of former Director Cordray, the office took an unbalanced approach to rule making and crafted a rule based on a partisan political agenda,” said Dennis Shaul, Managing Director of Community Financial Services Assn. from America.

But Shaul said he was disappointed that Kraninger left some provisions in place and called for the 2017 initiative to be “repealed in its entirety.”

Consumer advocates said Kraninger’s decision went too far.

“The Kraninger CFPB is giving a Valentine’s Day gift to payday lenders, helping them continue to trap Americans in crippling debt cycles,” said Rebecca Borné, senior policy adviser at the Center for Responsible Lending.

“The payday rule was developed through years of extensive research and dialogue with stakeholders,” said Borne, whose group is part of a coalition called Stop the Debt Trap that supports regulation. “Scrapping it will particularly hurt communities of color, which payday lenders disproportionately target for predatory loans.”

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How new laws are pushing predatory loan sharks closer to extinction https://soundzine.net/how-new-laws-are-pushing-predatory-loan-sharks-closer-to-extinction/ https://soundzine.net/how-new-laws-are-pushing-predatory-loan-sharks-closer-to-extinction/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/how-new-laws-are-pushing-predatory-loan-sharks-closer-to-extinction/ Amid fears of growing financial hardship across New Zealand, a global campaign against high-interest lenders appears to be gaining traction. Payday lenders, truck shops, loan sharks: the names alone are enough to conjure grim images of shady operators and con artists hiding in dark spaces to prey on the financially vulnerable. While reality isn’t always […]]]>

Amid fears of growing financial hardship across New Zealand, a global campaign against high-interest lenders appears to be gaining traction.

Payday lenders, truck shops, loan sharks: the names alone are enough to conjure grim images of shady operators and con artists hiding in dark spaces to prey on the financially vulnerable. While reality isn’t always so cinematic, their business models don’t do much to improve common perception.

High cost lenders are known for their opportunistic advertising and for offering quick and easy loans to people, often without ensuring that they are able to repay the money. With interest on loans sometimes reaching 600% per year, debt can easily spiral out of control and destroy lives, pushing people into a deep hole from which it may be impossible to get out.

As New Zealand enters an economic recession and unemployment is expected to peak at 10% next year, there are fears that vast waves of financially struggling households will be seduced by the quick and convenient money from payday lenders. , resulting in crippling debt and widespread poverty.

This is why, a few months ago, the government accelerated a bill to hamper high interest rate loans. The An Act to amend the legislation on credit contracts – which was passed in 2019 but came into effect in May this year – has a number of new restrictions, the most important of which is the interest and fee cap which prevents someone from being charged more than 100% the value of any amount borrowed. This means that if a person borrows $ 500, they will never have to repay the lender more than $ 1,000, including fees and interest.

Payday lenders and trucking shops are also now required to make reasonable inquiries into the financial condition of the borrower to ensure that he is able to repay the loan without significant hardship and that the loan is likely to fall. meet their needs. Truck stores, in particular, must also assess the affordability of customers before selling merchandise on credit.

With violators facing a $ 600,000 fine, the new rules are apparently too onerous for some high-cost lenders, forcing them out of the market since the legislation came into effect. Checkers Finance says on its website that it is no longer issuing loans due to government crackdown, while the pawnshop and payday lender Cash Converters announced in June that it was closing four stores and laying off 80 employees because of the new laws.

As for other payday lenders operating in New Zealand, some have since expanded their models so that they now charge just below the 50% interest that is a high cost loan. Moola, one of the largest in the country, now describes itself as a responsible lender on its website and has applied the interest cap in its loan calculator. Meanwhile, Christchurch-based Save My Bacon argued it was already moving away from payday lending long before the new rules came into effect.

“The company – even before the legislative changes – transformed the business from high cost loans and more to longer term flexible loans with low interest rates,” said Tracey Gillman, CEO of Save My Bacon.

With such changes in the market, the pressure certainly seems to be paying off. However, Tim Barnett, CEO of the financial capability body Fincap, said it is not only the interest cap, but also the power and awareness of borrowers that is influencing the landscape.

“[Payday lenders] relied on people who were wrong and complained and they relied on poor supervision to make their models work, ”he said.

Under the Law Amending the Law on Credit Agreements, borrowers who have obtained unaffordable or unsuitable loans will now be able to claim legal damages under dispute resolution programs, which could include repayment of all debts. interest and costs and compensation for any damage. Lenders are also required to pass a “fit and suitable person” test and submit statistical information about their business to the Trade Commission on an annual basis.

Barnett said these demands along with the government’s serious efforts to raise awareness “are setting a new standard.” The legislation is now very similar to that of the United Kingdom which has been very successful in forcing payday lenders to adapt or exit the market altogether.

There are fears, of course, that by ensuring that loan sharks lend responsibly and by examining the financial situation of borrowers, desperate borrowers will be pushed back and forced to seek loans from even more nefarious sources like gangs.

To deal with such a risk, the government was invest significant resources in financial capacity services to form a kind of safety net – a place where people can always go to find a solution to their money problems. This includes financial mentoring services like Money talks – a free helpline where people can discuss their finances and make a plan to get out of debt or access responsible loans. There are also nonprofits funded by banks that offer responsible loans without interest or at low interest rates to those in financial difficulty, such as Kiwibank-championed. Ngā Tāngata and supported by BNZ Good shepherd.

Good Shepherd CEO Fleur Howard said she fully supports the move against loan sharks, who often lead people to find a quick fix in the world of long-term money problems.

“We strongly believe that the disadvantages of these high cost loans far outweigh the advantages,” she said.

“With these choices, people looking for these loans are now more likely to access a service like ours that has positive results in terms of a fair and short-term financial solution, while contributing to longer financial capacity. term and well-being, or decide to access a much longer-term solution such as financial mentoring.

While many lenders have obeyed the new laws, it remains to be seen whether or not there will be a lot of enforcement from operators who choose to flout them. The Trade Commission confirmed that it is still assessing lenders’ compliance with the legislation, but has not opened any investigation into alleged violations of the new rules on high-cost loans.

In the meantime, he has called for some scalps in recent successful court cases against payday lenders for breaking the old law on credit agreements in recent years.

In separate cases, lenders Ferratum and Pretty Penny were convicted of violating responsible lending requirements and failed to ensure their loan agreements were not oppressive. The two were ordered to repay the borrowers and Pretty Penny has said she will be pulling out of New Zealand in her settlement agreement.

High cost lenders have a habit of reincarnating like other businesses, and Pretty Penny could very well reappear in another form. Either way, a few valuable payday loan skins nailed to the wall send a very strong message to those looking to issue a 600% interest loan.


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Payday lenders in Canada are using the internet as a way to get around the laws https://soundzine.net/payday-lenders-in-canada-are-using-the-internet-as-a-way-to-get-around-the-laws/ https://soundzine.net/payday-lenders-in-canada-are-using-the-internet-as-a-way-to-get-around-the-laws/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/how-payday-lenders-are-using-the-internet-to-evade-the-laws-in-canada/ Canada is taking measures to crackdown on payday lenders. Payday lenders can’t open stores or get business licenses across Canada. These regulations were established to stop payday loan borrowers falling for loans with high interest rates, hidden fees, and other shady practices. Payday lenders online Many payday lenders can get around the municipal level. Regulations. They are simply setting […]]]>

Canada is taking measures to crackdown on payday lenders. Payday lenders can’t open stores or get business licenses across Canada. These regulations were established to stop payday loan borrowers falling for loans with high interest rates, hidden fees, and other shady practices.

Payday lenders online

Many payday lenders can get around the municipal level. Regulations. They are simply setting up an internet payday loan company, where the municipal laws don’t apply. Champion Lender, have full rights to market to Brampton, Toronto, or other Canadians, without municipal oversight. Mon won’t be affected by any laws that apply to payday lenders if they are online only.

Advertisements by payday lenders in a given area of Canada are not always indicative that they exist. This simply means that lenders are targeting Canadian customers. These people are usually low-income and rely heavily on loans to pay their bills, or to fund an emergency fund. These people are vulnerable to predatory lenders online who will try to cheat city regulations to offer them a treat.

Payday loans available anywhere

A payday loan website could be based in one city, province, town or other area. They might not be based there. It is crucial to check the details at the bottom of the page to confirm their exact location. Often, they will not both be from the same area. They will likely be located somewhere with easier loan regulations.

Online lenders may not be licensed in the locality they are located. where they will market their loans to the public. To find out more about the license details of the lender, click the link to the privacy policy/terms of use at the bottom of the lender’s website. Sometimes, the lender might not even be licensed. Only trust licensed businesses in your area.

Canada does not have any laws that prevent payday lenders from being offered in Canada. This means federal agencies can monitor the activities of these companies. This is not always the truth. If enough people have complained, an agency can only investigate an online payday lender. Otherwise, surveillance won’t be taken seriously. Each province in Canada has its own set of rules to protect payday lenders. These rules define the maximum fees and penalties that may apply for a borrower from a provincial. This problem can often be avoided with online lenders who offer many options. Online lenders are able to offer loans to individuals from different parts of the country. They don’t have the same requirements as payday loan lenders within the same area.

Unauthorized lenders

It’s a fact that not all unlicensed lender are known. Unlicensed lenders don’t require you to repay them. Canadian law requires that every lender has a license. So if you default on

Payday loans by unlicensed companies is illegal. They can’t sue you as they already broke the law. They hope that you will pay them interest in the thousands or hundreds.

First, you have to make the payments on the small loan that they provided. Then you can finally see the truth.

Unlicensed lending may allow them to operate from overseas locations such as the Cayman islands. Canadians may think they are dealing with a payday loan lender. They will however be referred at minimum two other lenders.

They visited three websites as part of their troubleshooting inquiry. They are now aware that they are dealing with a foreign lender and do not have to comply with Canadian laws.

Conclusion

Payday loans are not necessarily bad. You should do your research before you apply for one. Research as much information as you can about the lender, as well as the terms of the loan. The lender must be located in Canada and offer reasonable terms.

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Why personal debt looks healthy despite the worst year for jobs https://soundzine.net/why-personal-debt-looks-healthy-despite-the-worst-year-for-jobs/ https://soundzine.net/why-personal-debt-looks-healthy-despite-the-worst-year-for-jobs/#respond Tue, 09 Mar 2021 11:34:57 +0000 https://soundzine.net/why-personal-debt-looks-healthy-despite-the-worst-year-for-jobs/ California experts say mainstream indicators have failed to capture the true toll of the pandemic, warning of a much more complicated – and uneven – debt history. On paper, the Golden State appears to have escaped 2020 without a personal debt crisis. Despite an unprecedented 2.4 million jobs lost in the spring, Californians joined with […]]]>

California experts say mainstream indicators have failed to capture the true toll of the pandemic, warning of a much more complicated – and uneven – debt history.

On paper, the Golden State appears to have escaped 2020 without a personal debt crisis. Despite an unprecedented 2.4 million jobs lost in the spring, Californians joined with fellow Americans in paying off interest-heavy debts such as credit card bills while acquiring wealth-building loans by taking out mortgages. In California, new mortgages have jumped ten% Even like house prices have skyrocketed, suggesting unexpected resistance to a protracted pandemic.

Economists and financial researchers across the country see no telltale signs of financial trouble in the Federal Reserve Bank of New York reports consumer debt, such as devastating spikes in defaulted debt, bankruptcies and foreclosures during the Great Recession. In fact, they are seeing near record lows.

But appearances can be deceiving.

The large gains of affluent Californians seem to mask the experiences of suffering segments in debt records that are not easily broken down by race, income or geography. Additionally, millions of Californians experiencing job losses have racked up crippling debt levels that go unrecorded in many national metrics: unpaid rent, utility bills, borrowed money from loved ones and, in some cases, predatory loans.

The opacity of the debt data poses a problem for the government’s response. Even in california extends an eviction ban, considering additional stimulus aid and press for additional unemployment assistance, it is not known whether this relief will be sufficient to prevent a debt crisis or simply postpone it.

“Once the dust settles, it will be a story of inequality,” said Matthew Harding, professor of economics and statistics at UC Irvine.

A counter-intuitive trend

Economic city centers usually trigger high levels of debt distress.

“Debt is what fills the void,” said Taylor nelms, senior research director at the Filene Research Institute, a national think tank working with hundreds of credit unions.

After the 2008 financial crisis, credit card debt skyrocketed. The same goes for the part of American borrowers who are in arrears on their debts, which can hurt credit scores. At the end of 2009, around 12% of US household debt was in arrears, the highest rate ever.

Yet this is not happening now, despite the United States lose more jobs in 2020 that were lost overall Great recession.

A rate below the average of 3.4% of Americans’ personal debt was in arrears at the end of September. California, one of the states hardest hit by delinquency in the Great Recession, now has the lowest rates in the country, according to an interview with researchers at the Federal Reserve Bank of New York.

In another surprising twist, U.S. credit card debt – which, unlike mortgages, economists often consider an unhealthy form of debt because it doesn’t create wealth – fell $ 76 billion in the spring, falling the stronger since the country’s banking system began analyzing debt. records in 1999.

It’s a sign, experts say, that Americans are spending less due to travel restrictions, business closures and lost income. But this is also due to the active debt repayments of those who have benefited from additional financial cushioning through increased unemployment benefits and stimulus checks of $ 1,800. About half of Californians who received the latest round of stimulus checks say they mainly used them to pay off outstanding debt, according to January Census Bureau surveys.

How could a disease nicknamed the ‘inequality virus“Not generate alarming signs of household debt?

State of suspension

Maybe it’s just pending. Federal injections of funds helped many people through the year. California lawmakers have banned evictions until the end of June and Newsom has banned water and power cuts during the pandemic. While ensuring access to basic needs during the crisis, these moratoria darken the true level of Californians’ debt problems.

“If the protections were extended permanently, the data would align with reality,” Nelms said.

About 1.6 million Californian households are behind on water payments. Estimates of the number of late rent payments range from 90,000 to 700,000. At some point, these invoices will come due.

Lawmakers have taken steps to reduce past due debts. The federal government, with some private lenders, offered people the option to defer payments on their student loans and mortgages, a process called forbearance. But these relief efforts have also created mixed signals about the state of delinquency in California.

A working paper written by researchers at Stanford and USC, among others, found that Americans were forborne on roughly $ 2 trillion in loans between March and October, including $ 1.1 trillion. came from delayed mortgage payments. Study co-author and USC assistant professor Erica Xuewei Jiang believes this sets a record.

Abstentions largely explain the difference between the 2008 crisis and the pandemic, said Giacomo De Giorgi, director of the Institute of Economics and Econometrics at the University of Geneva in Switzerland, including why the foreclosures – when a lender repossesses a house after the owner has failed to pay the mortgage – have all but ceased.

“We’ve never seen this before,” De Giorgi said. “It is very difficult to know if this is an optimistic image.

A story of inequality

Another reason debt levels look deceptively healthy is growing inequality.

“When we worry about averages, we miss a lot of things,” said Harding of UC Irvine.

The rich are distorting the Fed’s debt measures. For example, people with a credit score above 760, who tend to make more money, are responsible for 85% of the nation’s new mortgage debt boom, taking out $ 329 billion more in home loans since March. . The mortgage balances of borrowers with scores below 620 have declined.

Harding is also concerned that the data, which he says cannot be disaggregated by race, may hide alarming trends among specific demographics.

Ernesto Martinez said he was witnessing “possibly the biggest wealth stripping event of our lives” among the families he serves as director of asset building programs at the Mission Economic Development Agency.

Before the pandemic, the nonprofit helped about 8,000 families, mostly immigrants, who earned an average of $ 30,000 a year in the Bay Area to build wealth through job training, a financial coaching, income tax services and affordable housing.

Now, his team is scrambling to help clients retain “what little wealth” they may have developed.

Desperate debt is not counted

Federal Reserve data also fails to measure some of the more distressing forms of debt, often affecting those who have endured long months without assistance because they are undocumented or their unemployment benefits have been frozen or delayed.

It only counts debtors with social security numbers, excluding undocumented immigrants. That doesn’t include the increase in utilities and rental debt, which “has the potential to be pretty catastrophic,” said Marisabel Torres, California policy director for the Center for Responsible Lending, a non-profit organization. profit that fights predatory loans.

It doesn’t capture the 14% of Californians who told the Census office in January that they borrowed money from family or friends over the past week. This ignores people who turn to high interest financial services, like payday loans or title loans, because they have limited or poor credit histories.

a Google search analysis by the Federal Reserve Bank of Kansas City found evidence that demand for securities and payday loans has plummeted. However, experts fear that these often predatory types of services will skyrocket when financial protections expire. The use of payday loans doubled in the years following the Great Recession, hitting people with limited or poor credit the hardest.

Until recently, Erica Wood of San Diego had dealt primarily in cash, leaving the 44-year-old pharmacology researcher-turned-small-business owner with little credit history.

The pandemic has wiped out Wood’s booming mobile drilling business. Being behind on May’s rent, she became desperate. Through an online lending agency, she took out a title loan of $ 4,000 at an annual interest rate of 400.87%, with her 2015 Lincoln MKZ as collateral. When the end of the pandemic still seemed near, Wood figured she would pay off the loan immediately.

But the pandemic continued, and interest grew faster than she could pay it back. Wood cashed in his 401K, refinanced the loan, sold stocks and a precious classic truck.

She might have paid off the loan sooner, if it weren’t for the chaotic crackdown on fraud by the California Department of Employment Development, which led to Bank of America to freeze its benefits card in September. After countless hours on the phone with representatives, Wood still hasn’t seen a dime of his pandemic unemployment assistance of $ 598 every two weeks.

Two months behind on the loan repayment of the title, she still owes about $ 4,300.

Although Wood’s financial crisis doesn’t show up in the national debt statistics, her boyfriend’s relative success may soon be. An electrician, his annual income rose from about $ 55,000 to over $ 80,000 as the business boomed and he worked weekends.

“He wants to buy a house now because the mortgage rates are so high,” Wood said. “But I’m panicking.”

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