Bank Lending Payday Loans

(Photo credit: Wikipedia)

Payday loans are a billion dollar industry today. The number of payday loan providers is on a steady rise and so is the number of borrowers. This points to the dependence among people with these loans to tide over their cash emergencies. These easy and fast loans offer great relief to many who find themselves facing a cash crunch and their pay day still far away. However, these loans should be taken out only during cash emergency and paid back within the next month. These should not be looked upon as a long term loans as they are not. They carry very heavy interest and that can only get bigger if not paid in time. 

Surprisingly, some banks too, have started showing interest in offering payday loans. Earlier, these financial institutions showed little interest in this industry. And some of these trusted institutions are certainly not the biggest loan sharks in town. Generally speaking, people taking payday loans from banks remain in debt for an average 175 days a year. The regular bank payday loan with a yearly 365% interest rate is certainly less than what other payday loan providers are charging.

The advance loans from banks, just like payday loans are usually made for two weeks or a month. But here, the banks do not accessing the borrower’s bank account information or use post-dated check. It makes use of customer's checking account to pay back itself. Many customers are not able to pay back the loan and fees, thus forcing them to extend the cycle of debt and forcing them to take out another loan to break free of the earlier debt. 

However, a recent research shows a cycle of higher debt with bank payday loans. The borrowers pay more overdraft fees than non-borrowers. This is a clear sign that some of these banks are targeting vulnerable borrowers and have already been warned to stop predatory bank payday lending. Already investigations are on to curb this practice and the regularity bodies are spreading more awareness among customers on these issues. For example, in US, Payday lending has been declared illegal in North Carolina. But still, there are many banks in Alabama who are still marketing their payday loans to their customers.

 
According to some banks, their loans differ from those offered by payday lenders. The advantage here is that as the borrowers are already their checking account customers, they can be sure if the customer will be able to repay the loan and has the fund. Moreover, the banks account the repayment history of their customers to credit bureaus unlike payday lenders. Moreover, banks normally won't give out new loans unless and until the earlier loan is paid off, unlike the payday loan lenders. 

If your bank is payday lender, you should try to get complete information about these loans. Talk about the terms and conditions, the interest rates charged, the payback time etc. Don’t be afraid to join the call for regulators to prevent some banks to keep away from payday loans. 

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When To Use a Real Estate Agent

You may be taking many steps today to prepare for your next home purchase. For example, you may be saving money for a down payment and using a mortgage affordability calculator to determine what size of mortgage you can afford. If you will be selling an existing home, you may be making minor repairs and upgrades to prepare to list your house on the market. In addition to taking these steps, you may be wondering if you should use a real estate agent to sell your existing home, buy your new home or both. Read on to learn more about when you should use a real estate agent or go to http://www.mortgagerates.ca/ for more information on applying for a mortgage.

 

The Cost of A Real Estate Agent’s Services

One thing to consider before deciding if you should use a real estate agent for your sale, purchase or both is if you can afford to pay for the agent’s services. The services of a real estate agent are typically paid for by the seller, and the total fees paid to both a buyer’s and seller’s agent during a single transaction may range between five and ten percent, although there is some variation in this. However, you should be aware that the amount of the fees as well as who pays for them can be negotiated. With this in mind, it is possible for a buyer to use a real estate agent’s services and not pay any agent’s commissions at all. Furthermore, it is possible for a seller to negotiate agents’ fees so that they are affordable. 

The Benefits of an Agent’s Services

The transfer of real estate from one party to another is not something to be taken lightly. There are legal and financial ramifications associated with this transaction. Furthermore, the buyer needs to ensure that the home is functional for his needs and that the property is a sound investment. A skilled real estate agent offers expertise and knowledge that can be used in each of these areas throughout the process. An agent’s services are most beneficial for a seller in a buyer’s market and for a buyer in a seller’s market. In these situations, market conditions may be in favor of the other party in the transaction, and the skills and experience of an agent are vital. However, in all market conditions, a real estate agent can add value to the transaction. Because of the benefits associated using the services of a real estate agent, one of the steps that you should take in preparation of your upcoming sale or purchase is to locate a reputable, experienced real estate agent to assist you with this process.

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Mis-sold Credit Card PPI Can Be Reclaimed

Loans (Photo credit: zingbot)

The mis-selling of Payment Protection Insurance is one of the biggest financial scandals to occur in recent years. There is such a large amount of money at stake that many customers were mis-sold and they are only just now learning about it. It is estimated that PPI is worth £6 BILLION in revenue to UK banks and loan companies, generating in excess of £1.4 billion in profits. 

Nearly everyone has some type of credit accounts. It could be a loan, credit card, store card, vehicle finance, mortgage or any other type of finance. If you have or recently had credit is more than likely you had PPI and if this is the case it is also likely that you may have been mis-sold the policy.

If you think you have been mis-sold and you think you have a PPI claim, here is some good information you should know:

1. What is PPI?

The purpose of PPI is that it covers your debt repayments if you cannot work, become ill, have an accident or if you are made redundant.
For this reason it is commonly sold alongside credit agreements to protect both you and the lender in the event that you cannot make the repayments.
It's not that PPI is a bad product, the problem is the way policies have been sold to the consumer.

2. How do I find out if I have PPI?

First look at the documents that were sent to you at the time you took out your loan, credit card, mortgage or other type of finance agreement.
The PPI may be part of your repayment statements and might be listed as 'payment protection insurance', 'loan protection cover', 'card protection cover' or something similar.

If you do not have the paperwork or if it is not clear, contact your lender or finance provider and ask whether you have PPI.
If they do not have a reference number, but you believe that you have been sold PPI, ask them to provide details for whoever the underwriter was for their PPI products.

3. How do I know if I was mis-sold PPI?

PPI may have been mis-sold to you if it turns out that the policy is not appropriate for your needs. Set out below is a list of the reasons why such a policy may have been mis-sold to you.

• You were aged under 18 or over 65 when the PPI was sold to you. The insurance should not be sold to people outside of these age ranges.
• You worked less than 16 hours a week when the PPI was sold to you. PPI policies do not cover part-time workers.
• You were employed on a temporary or contract basis when the PPI was sold to you. PPI policies do not cover temporary or contract workers.
• You were self-employed when the PPI was sold to you. Protection for unemployment is not always applicable with these policies and you should have been advised of the employment stipulations with the policy.
• You had an existing illness when the PPI was sold to you. Policies are probably invalid if you have a pre-existing medical condition, especially if your illness could worsen, leading to a loss of income.
• You were not informed that the PPI policy would not cover conditions such as stress and backache. PPI policies do not usually cover mental health issues i.e. stress or depression, nor common muscular problems.
• You were aware you may become unemployed when the PPI was sold to you. Some PPI policies do not cover a known or possible loss of income and this should have been explained to you.
• You were not told about the cost of the insurance (or not told you were buying it at all).
• You were not asked about any other insurance, similar to PPI, that you may have already been covered by. You may have already been covered by an existing insurance policy.
• You were told that the PPI was necessary for you to get the loan. A loan is not dependent upon having Payment Protection Insurance. It is entirely optional.
• You were not told that the same policy could potentially be bought for cheaper elsewhere. You do not have to obtain the PPI policy from any specific lender and there are many such policies available. You are supposed to be given the option to source the policy (should you require the same) anywhere.
• You applied for a loan online where the box for PPI was automatically ticked. Many application forms for “on-line” loans or credit cards has a tick box to either opt in or out of PPI. In some cases, the tick box was already ticked and the applicant had to opt out of having the insurance by un-ticking the box. After July 2007 this was changed following the FSA (Financial Services Authority) intervention.

A salesperson should have gone through all of the above points to make sure the policy was suitable. However, some companies misled consumers by failing to explain what it was for and who it applied to.

Consumers were advised that they needed to pay for such a policy if they wanted the loan or that it would cost them less if the policy was taken out with the loan.

The policies are purely optional and do NOT have to be purchased from the same company providing the loan.

In some instances, such policies were added to the loan without the knowledge or consent of the consumer by stating that the policy was “fully protected” without explaining that this actually meant a PPI policy would be added to the loan at a further cost.

How do I reclaim mis-sold PPI?

Write to your lender and state that you think you have been mis-sold PPI and therefore ask them to review your file. If your lender rejects your request, take the matter to the Financial Ombudsman Service.

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Scottish Trust Deeds - A Debt Solution For Scottish Residents

In today's economy many people are having great difficulty paying their bills. Through a loss of their job, a sickness, or a financial crisis many people are finding themselves on the edge of bankruptcy. An alternative, offered to the people of Scotland, is something called a "Trust Deed".

How Does a Trust Deed Work?

A Trust Deed is a voluntary agreement between an individual who is unable to pay his or her debts and a licensed Insolvency Practitioner (the Trustee). It allows you to pay as much of your debts as your assets and your monthly surplus income will allow. Trust Deeds normally last between three and five years.

The role of the Trustee is to present your Trust Deed proposals to your creditors and then administer the Trust Deed to its completion.

As long as no more than half or a third of your creditors object to your Trust Deed, then it will become protected. Once the Trust Deed is protected, your creditors cannot take further action against you or make you bankrupt. Once you've successfully completed your Trust Deed, you’ll be free from all debt included in it.

While the terms of a Debt Management Plan are informal, and creditors may increase their demands on you at any time, with a protected Trust Deed, interest and charges will be frozen for its duration.

How Do I Know A Trust Deed Will Work For A Situation?

The check list for entering into a Trust Deed is straightforward.

• Only individuals residing in Scotland can enter into a Trust Deed Scotland
• There's no set amount of debt or level of contribution required for a Trust Deed
• Each Trust Deed proposal is treated individually, based on your own unique circumstances
• Only unsecured debts can be included in a Trust Deed

What Makes a Trust Deed Better Than Other Debt Solutions?

For those with a large amount of unsecured debt, for whom a Debt Management Plan (DMP) or a Debt Payment Programme (DPP) may not offer a solution within a fixed timescale and for whom Sequestration (bankruptcy) may be too disruptive, a Protected Trust Deed offers financial freedom within the foreseeable future.

• All interest and charges will be frozen
• Pressure from creditors will be eased, as the Trustee deals with all correspondence and queries
• A Trust Deed is usually more flexible than Sequestration. It also allows the individual to hold certain public offices, which may not be the case with sequestration
• It may be possible for companies to continue trading and individuals to retain their directorships
• Trust Deeds are not published in local newspapers
• After you successfully complete the term of your Protected Trust Deed, you are free from all debt included in it

What Else Should I Know About Trust Deeds?

A Trust Deed will not be the ideal solution for everyone and you should consider all the implications before you enter into an agreement.

All assets and liabilities have to be declared. You may be required to release equity in your property and any assets of large value will need to be sold to raise funds

Entering a Trust Deed will affect your credit rating.

You need to stick carefully to a budget for the duration of your Trust Deed and your income and expenditure will be reviewed regularly during the Trust Deed.

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Walmart Critics Get Second Opinion

(Photo credit: Wikipedia)

Recently we have read and heard a lot about Walmart and the employees concerned about the level of pay they earn. There has been talk about strikes and walking off the job. The nations constant dialogue on the state of Walmart, its employees, and lack of healthcare for it's workers has caused many to demonize this monster retail business.


Before you join the angry crowd that is criticizing Walmart, consider the interesting comments of Peter Suderman. He makes some interesting points about Walmart's effect on its employees and the country.

Who is Peter Suderman? 

Peter Suderman is a senior editor at Reason Magazine and Reason.com, where he writes regularly on health care, the federal budget, tech policy, and pop culture. He is also a film critic forThe Washington Times and a 2010 Robert Novak Journalism Fellow.

Here is his Twitter feed on Saturday :

Get Cash Back With Ebates

Trying to play the points game with credit card purchases is a sometimes frustrating and non-profitable endeavor. Over the last few years I have tried different cards for their cash back points and I have seen only poor results.

The cards usually have the items that you need to purchase but later change categories and your out of luck. And what about the cards that have rotating categories, it just doesn't work. There has to be a better way.

Some cards have you using their portals to make your purchases. When you shop through your card issuer’s portal, the company places tracking information on your computer.

This tracking information allows the retailer communicate back to the issuer the cost of your purchase and how much cash back you should receive. The tracking information and the online store work together to make sure you receive the cash back as described in the portal.

Cash Back With Ebates

The system isn’t always wonderful, though. The shopping portals rarely have the specific store you’d like to shop, and it can be a pain to log into your credit card website every time you want to purchase an item online. I prefer the convenience of a shopping portal that works with every credit card, like Ebates.com, rather than a branded issuer-based portal.

I’ve been using Ebates occasionally for the past several years. By creating an account, you earn cash back at more than 1,200 stores. Membership is completely free; in fact, you can earn money by being a member by referring your friends.

The concept of spending money to save money is interesting. It only works when you’re spending only the money you would spend anyway, without the cash back incentive. If a cash back rebate is the impetus that helps you decide to purchase a product, the purchase may not be the best idea in the first place.

Furthermore, you have to carefully consider the total cost of your purchase. Many times, you can find a better price for a certain product on a website that’s not included in the portal’s list. For example, if your favorite book is $10 on Amazon.com and $15 on Barnes and Noble’s website, the 4% cash back you receive for Barnes and Noble doesn’t make up for the difference. The book is still $14.40 at Barnes and Noble.

When you do find a good deal on the stores supported by Ebates, receiving your cash back is easy. I created a PayPal account and linked it to my bank account, and use this account primarily for payments from Ebates.

You could also configure your Ebates account to distribute your cash back to you in the form of paper checks, if you desire. Furthermore, if you prefer to designate your cash back to a charitable organization, you can provide information for the non-profit to receive your payments.

Ebates is another option available for those who want to make the most of their everyday purchases. Sign up today for free to use Ebates to maximize your cash back. Used in conjunction with a cash-back rewards card, the rebates are unbeatable.

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