The passing of Dodd-Frank Act under the Obama government came as a blow to banking and financial services industry, especially to e-payday loans online in 2010 after the recession. Because of which the compliance burdens were created which made it difficult for the U.S. companies to compete with the foreign counterparts.

The banking and financial services are all set to benefit from the Trump rule. Finally, there is someone from the business side to look at the financial soundness and implications of the decisions on the business world. The unbelievable victory of Trump over Clinton has resulted in the key branches such as legislative and executive under the Republicans. Democrats and Ex-President Obama were not in favor of few regulations which will now be controlled by Republicans.

As is already known that Trump has been relatively quiet on his plans for banking policy, but he has already mentioned he wants Dodd-Frank act should be dismantled. Also, not only the act but much of the financial regulatory structure could be turned upside down, says Justin Schardin, the director of Bipartisan Policy center. Additionally, a lot of that decision also rests on who would be nominated for vacant positions of Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and Treasury Department.

What is financial regulation plan of Republicans?

Republicans already have a blueprint of the financial policy they would want to follow regardless of the Trump nominees. The mentioned blueprint is Financial Choice Act which seeks to undo many major provisions of Dodd-Frank.

The Director of financial regulation studies at Cato Institute, Mark Calabria is certain that Financial Choice Act will come back in next congress. This act was introduced by Representative Jeb Hensarling, who leads House Financial Services Committee. Calabria says that the bill is as is very comprehensive but some points; including community banking relief could likely pass.

A longtime industry representative who asked not to be named feels that the Financial Choice Act would yield significant benefits for banking. Also, he thinks that the largest financial institutions would get relief with the provisions to repeal the Durbin amendment and Volcker rule.

The Consumer Financial Protection Bureau (CFPB) funding and structure is likely to be reformed by Hensarling bill. CFPB is frequently lambasted by Republicans to make it less powerful.

Are these the best odds for community banking relief?

Well, Under the Trump leadership community and regional banks have the best odds of regulatory relief. Some prominent banking position holders think so. According to Paul Merski, the executive vice president at Independent Community Bankers of America, having the same party in control of congress as well as White House predicts that community banking relief will get passed. Also, he thinks that there is a better scenario for legislation to move through entire congress and get signed by president into the law.

The similar sentiment is echoed by Senator Mike Crapo heading the powerful Senate Banking Committee. As he hails from Idaho, a state far away from Wall Street, he is widely expected to back the legislation that would benefit smaller institutions.

Additionally, few Democrats including Senator Sherrod Brown from Ohio who is the ranking member on the Senate Banking Committee have embraced the idea of providing regulatory relief for community banks.

All in all future of the banking sector as well as financial services industry seems brighter. It will help the e-payday loans online to compete with their foreign players fairly without the legislative burdens the current financial policy imposes on them.

Proposed Payday Lending Restrictions will likely cause harm to Lower Income Households
If you read articles written by most mainstream writers or listen to election speeches from “progressive” candidates, you’ll probably find out that most of these folks detest payday loans. You’ll hear a lot about “cycles of debt”, “high interest rates” and lenders that are “predatory.” As it usually turns out with these sorts of things, most of the information you get is nothing short of hyperbole or click-bait. And here’s what some of these so-called “experts” and “consumer advocates” are not telling you: The latest batch of proposed payday lending regulations will probably cause a lot of grief for lower income households.
The bandwagon against payday loans has reached such a boiling point that Google has removed all ads for payday loans from its popular online ad network. This is the same Google that has no qualms about running ads for any number of scams, including tons of weight loss “miracle” systems that usually turn out to be nothing but snake oil in disguise. But the search engine/advertising giant has decided to toe the line when it comes to payday loans, by flat out banning ads for these popular types of loans.
With all of this going on, it should come as no surprise that the Consumer Financial Protection Bureau has finally come forward with the new regulations on the payday loan industry that they have been threatening for the better part of the last year. All of the groups, individuals and institutions that are opposed to short term loans have been overjoyed about the new rules. But a huge group of people (according to some studies, more than 12 million American households) are not going to be doing any celebrating if these proposed regulations wind up becoming federal law.
While the CFPB is not actually banning payday loans, the main idea behind the crafting of the new rules is to force lenders to make sure that all borrowers are able to pay back their loans on time. So, what’s wrong with that? Well, even though some people may not like payday loans that does not mean that these loans do not help people. As we said, nearly 12 million people rely on these loans during any given time of the year, and that number may actually be increasing.
It is easy to believe that the majority of payday loan customers are people who have no access to mainstream credit. However, as more people find that their pay schedules at work don’t exactly jibe with their financial needs, more people may require payday loans to help them get through in between pay periods at work. In fact, some big financial investors are investigating ways to offer payday loan-like products and services to everyone who is gainfully employed. Even Uber is getting in on the game, by announcing company plans to allow their drivers to get payday advances of as much as $1,000. And other new offerings may soon be coming that allow employees to get payday advances through cooperative efforts with their employers and new lending methodologies.
Here’s what it comes down to: For all of the “progress” that the CFPB is offering, they may be a day late and a dollar short. Just like other government initiatives in the past, this crackdown on payday lending may be another case of the federal government attempting to introduce regulations to an industry that is already on the cusp of great changes. And to make matters worse, the regulations will probably limit access to lines of credit to lower income people, right when those same loans begin to become more accessible to just about everyone else.
Make no mistake – the regulations will cause people to go without. The CFPB says that by increasing lenders’ costs, they would reduce the total dollar volume of payday loans by more than half. So where will all the money that would have normally gone to borrowers go? Could be that those dollars will wind up in the wallets of borrowers who lenders are able to identify as being less of a risk. Kind of sounds like a case study of poor/lower income households being marginalized and punished, doesn’t it?

The Consumer Financial Protection Bureau (CFPB) has taken new steps to introduce stiff legislation on smaller dollar lending companies, better known as payday lenders. Just recently, the government watchdog group made an announcement that they were proposing new rules that lenders would have to follow. These rules revolve around borrowers having the ability to pay back any loans that they take out, and the lenders would have to be the ones to make sure consumers are able to make timely payments. The CFPB also proposed a new rule that would that would limit the collections actions lenders can use for any fees that are “in the excess.”

“Today we are taking an important step toward ending the debt traps that plague millions of consumers across the country,” said the director of the CFPB, Richard Cordray. “Too many short-term and longer-term loans are made based on a lender’s ability to collect and not on a borrower’s ability to repay. The proposals we are considering would require lenders to take steps to make sure consumers can pay back their loans. These common sense protections are aimed at ensuring that consumers have access to credit that helps, not harms them.”

This announcement has caused a bit of a tongue wagging in recent days, though some folks seem to be reacting positively to the proposals. The editors at the New York Times ran a story with the headline of: “Progress on Payday Lending” as a way to chime in on the proposal from the CFPB. The Washington Post also chimed in, with an article that said, “Payday lending is ripe for rules.”

“If you lend out money, you have to first make sure that the borrower can afford to pay it back,” said President Obama with regards to the new rules. “We don’t mind seeing folks make a profit. But if you’re making that profit by trapping hard-working Americans into a vicious cycle of debt, then you got to find a new business model, you need to find a new way of doing business.”consumer-financial-protection-bureau-logo

Nobody wants to see Americans caught in these supposed ‘debt traps’ however, the rhetoric that supporters of the CFPB’s proposals use is obviously crafted to get people behind these new rules. It really comes down to certain folks in the government and in watchdog organizations that have decided to wage what they believe to be a righteous war against payday lenders. Being as most people, even the highly educated folks out there, really don’t understand how the payday lending industry works, it is easy to see how opponents of the industry are able to get people all riled up.

A recent piece in the New York Times reported that the proposed rule changes would only affect a billion dollar industry that ‘serves the working poor’ of this country. That is s common, though misleading view of the payday lending industry. A recent study found that 80 percent of people who take out short term loans make more than 25 thousand dollars a year, and that nearly 40 percent make more than 40 thousand dollars a year. Only around 18 percent of regular payday borrowers bring in less than 25 thousand dollars per year. That 18 percent is what most people envision when they are told about the plight of the ‘working poor’ in the United States. Seeing as how this group really only accounts for a minority of the people who take out payday loans, it is easy to see how the CFPB and its supporters are skewing the facts to tug at peoples’ heart strings. The fact of the matter is that most borrowers are able to pay back their loans, aware of the fees that they will pay and responsible enough to make their loan payments on time.

With Obama being one of the biggest cheerleaders for the CFPB, it looks like everyone will have to watch this bureau get their way for some time to come. But what price will people pay in order to give this organization even more power than it already has?

People have a habit of thinking that they are always smarter than that ‘other guy.’ Whether it is the coworker who supports a different professional sports team than you do, or that uncle of yours who has radical political views, we all seem to think that we usually know what’s best for other people. Let’s face it – getting up on a soapbox and looking down on others can often be a real rush for some people. This has become even more obvious in the Information Age, as everyone and their sister has a point of view about things that they are sure is more informed than yours.payday-loans-61

This all applies to payday loans. Many people seem to think that payday lenders are predators and that the people who take out loans from these lenders are ill informed and in need of rescuing. The lenders charge supposedly sky-high interest rates and “trap” their customers into a never ending cycle of debt. At least, that’s how the story gets told online time and time again. Oh, and those customers who take out payday loans?? They simply don’t know enough about finances to understand just how much they are screwing up by taking out payday loans, right?

This mindset is poisonous, judgmental and, as it turns out, not at all correct. Recent information that was released by the Consumer Financial Protection Bureau seems to reveal the truth about both payday lenders and their customers, and this truth is not at all what you’ve heard or read about in all of those online exposes or local news stories. In fact, it looks like payday lenders are providing very much needed financial services, and, contrary to popular belief, the people who take out payday loans are actually pretty financially savvy.

The CFPB recently analyzed the complaints that they have received over the past three years. When all of the data was laid out on the table, it appears that payday lending really isn’t a problem at all. In fact, only about one percent of the consumer complaints logged online had anything to do with payday loans. The vast majority of complaints were related to mainstream financial services, like mortgages and regular old credit cards. Debt collection was also factored in, and those three areas all added up to over 66 percent of the complaints that were officially logged to the CFPB. This data is backed up by data from the FTC that pretty much reveals the same stats.

The date from the CFPB also disclosed that if people use overdraft protection – the mainstream financial alternative to payday or short term loans – and the APR terms used for payday loans were also used for those overdrafts that people would be much worse off. The APR on the typical overdraft protection fee would come in at an astonishing 1700 percent, while the average APR on a payday loan is only around 350 percent. The CFPB also noted that since people understand payday loan fees as flat, one time fees, rather than bloated APRs that they are better equipped to pay back their loans on time, without any misunderstanding.

We know that the websites and news organizations that love to beat up on payday lenders are not going to change their tactics any time soon. But knowing that even an organization like the CFPB understands that payday loans are not the scourge of the financial world, like so many people pretend that it is, goes a long way in helping to really understand how the payday lending industry compares to other types of financial service providers. And it’s nice to know that payday loan customers really are not the ignorant, helpless people that so many reporters from the mainstream news community like to make them out to be.

03.05.2014

A shop window advertising payday loans.

About fifteen years ago payday lenders were almost unheard of. Now things are very different. In some places in this country payday lenders out number some fast food chains. This may seem strange to some, but others are incredibly grateful that these businesses have popped up, because without them some people would not get the help that they need.

Some may not see the appeal that these loans have for some people. These loans are very convenient and they are small. When someone needs just a little help to make it until their next payday these businesses can do that for them without all the trouble of going to a bank for help.

Banks do offer these small short term loans, but they do not advertise it. This leaves some not knowing if their bank offers them or not. Many people who do not know for sure if their banks offer small short term loans do not want to take the time to go to their bank and find out if they can get one from them. Instead it is much easier to find a storefront payday lender who they know will help them out and get their loan there.

Payday lenders realize that times are tough. They offer roll over on loans if it is needed. Some people do not know what this roll over for loans is. What it is, is if you take out a loan and agree to pay it back with your next check, but then when the time comes to pay back if something happened and they do not have the full amount, the lender will allow them to roll the loan over to their next paycheck for a fee.

Payday lenders to some seem to be all about making money. But to the people who need their services they are all about helping the people in the community that they serve. Everyone needs help from time to time, and not everyone has a lot of options as to where they get that help from. For those people having a payday lender nearby is exactly the help that they need.

Many people do not need the help of a payday lender, but many do. Those who do need the help are often grateful that these businesses are around. Many who do not need them do not like them and do not want them to be around. One must keep in mind however if you have never been in the position to need a payday lender you do not know just how much they help people out. If you have never needed on do not pass judgment on the lender or the borrower until you have been in their position.

01.06.2014

There are many myths out there when it comes to credit scores. You have most likely heard at least some of them. No one really knows where they came from, but we do know they are myths. If you are unsure of what is a credit score myth and what is a credit score fact you should continue reading so you know fact from fiction.

One credit score myth is that you should never close a credit account. This is a myth because it is not always the case. There are times when this is what you want to do. Typically if you want to get a loan in the near future you do not want to close a credit account. However, if you have plenty of credit accounts, and you see no need for a loan in your future there is nothing wrong with closing one.

Credit Rating

Credit Rating (Photo credit: Match Financial)

Having tons of credit cards means you will not be able to get a loan is one myth that people think is true. At one point in time it was somewhat true. The fear was that you would go out and run up huge bills on those credit cards only to default and wind up in over your head. What has been noticed however, is that those who have been able to handle many credit cards for some time without issue will not just go out overnight and max out all of their cards. They have shown their responsibility by not keeping them maxed out, thus they are more trustworthy than once thought.

Another myth is that you do not need to worry about your credit score. This one is absolutely crazy! Of course you need to worry about your credit score! You credit score will determine what your loan rates will be or even if you can get a loan. Your credit score is very important and you need to pay attention to it. Remember the higher your credit score the better off you will be.

One rather strange myth is that you have to be in debt to have a good credit score. This is so not true. The thought behind this is that if you have a debt and are making your payments on time every month your credit score will go up. While that is true, you do not have to be in debt to have a good credit score. Say you have a credit card and make a purchase with it and then immediately pay it off. You do not have debt but it did help you build up your credit score.

Do not believe all that you hear when it comes to your credit. If you are unsure of something do your own research. You have the ability to find out for yourself if something is a myth or if it is a fact. The more you learn the better you will be able to separate credit score fact from fiction.

payday-loans-for-people-with-bad-creditPayday loans are there when you need a small amount of Financial Relief after a particularly bad financial month. If you had to spend money on a car repair, or a trip to the emergency room, there is a pretty good chance that you may need a little bit of extra money to make sure that you pay your bills on time. You won’t get thousands of dollars with a payday loan, which is kind of the point of what makes it so beneficial for people. You don’t have to take on a bunch of money that you don’t need if you are simply looking to pay off a bill that you owe. You take a payday loan when you need that small amount of money to make sure that you get the relief that you need.

While a payday loan is something that can be beneficial to you, it should not be the type of thing that you make a habit out of. Loans are there for when you need them sparingly, not as a crutch. If you find yourself month after month needing what a payday loan can offer you, you need to adjust your finances so that you can get out of your habit. While there may be little risk to a payday loan, when one makes a habit of getting them run the risk of putting together some pretty substantial debt, especially if they are not paying them back in time. One can find more info by taking a look online.

English: Decision Problem Closure Diagram

English: Decision Problem Closure Diagram (Photo credit: Wikipedia)

The best piece of advice that you can get when you are looking into getting a payday loan is to not rush into a decision. While it is nice to sit back and think that you can get Financial Relief from your problems in a matter of hours, it will take a bit of time to research your options for a payday loan and really make a decision on what is worth your time. Sure, you might need to make a decision in a few days time, but because you have that time you need to take it in order to be sure that you make the right decision. You should never rush into making a financial decision until you fully understand what is involved in it, and which professional can give you the best option at getting exactly what they need.

This is not to say that you have to stress yourself out as you search, it just means that you have to be thorough in your research. Look up a loan company in your area, see what they have to offer and then read the small print on the loans that they offer. All of the info that you need on a loan is out there, you just have to be willing to ask questions; if you find a company that can give you a great rate, and can fully show you what they can offer you, you can be sure that you have made the right decision.

If you are struggling to make ends meet, it may be time to apply online for a Cash Advance. Honestly, there is no shame in borrowing money that you need to pay your rent, take care of an Auto repair, buy groceries for your household, or even school clothes for the kids. These are all common reasons why one would need to borrow money. Forget about calling your parents and asking them for a loan. Nobody needs to know that you are having a hard time.

You Won’t be Turned Down

In the past, you may have been denied a Cash Advance simply because you have had credit challenges in the past. Thankfully, those days are long gone. As long as you have some type of income that you can prove, you should have no problems being considered for Cash Loans for Bad Credit.

You Need a Bank Account

unsecured-debt-consolidation

Because everything is done online, you are going to need a bank account. This will be the account where your money will be deposited. When it comes time to pay back your loan, this is where it will be deducted from. If something changes and the money isn’t available, this is no problem. Never make the mistake of not letting your Cash Advance lender know that the money isn’t going to be available. This is only going to cause more problems then you will know what to do with. Always be honest with your lender. You will be penalized for a late payment. However, it is better than going overdrawn again on your bank account.

You Don’t Need a Full Time Job

It’s nice to know that you don’t need to be working a full-time job in order to qualify for a Cash Advance. Of course, you have to have an income of some type. This could be a Social Security check, alimony, or even child support. As long as you can prove that you have this income, you should have no problems qualifying for the money that you need. A payday loan is waiting for you. Apply online today to have your money by the end of the week

The usage of an advance cash loan also known as a payday loan has saved many people from dire consequences such as the ability to pay for rent and mortgages. A cash loan helps the individual out until they are able to pay back the loan as a set date by the payday lender of their choosing. Everyone is able to obtain a cash loan bad credit as long as they provide the payday lender service with all of the correct information. The lender will ask the potential borrower about their contact information, employment information and checking bank account. The lender may also ask for several references such as the person’s relatives and close friends. The lender will only use the references if the borrower skips out on paying back the payday loan.

An advance cash loan is a very short-term cash loan that will last from two weeks to four weeks. The financial lender requires the borrower to pay back the loan on the set due date. The borrower will fill out an application but it is nothing compared to a bank application that will ask the application for their social security number and other private information. The information the lender will ask on the application includes the borrowers contact information, employment or income information, bank checking account information and reference information. The reference information is the borrower’s friends and family who will hear from the lender if the borrower decides to not pay for the long at the due date. If the borrower decides to rollover the loan into a new term there the borrower must be aware of the additional fees involved and the additional compounded APR (Annual Percentage Rate) rate if they decide to go that route.

Bad Check fees

ATM Fees: Paying for Convenience

Writing bad checks is an easy way to get into lots of trouble. Writing a bad check will cause the bank to do two things: one is they will return the item to the individual or business due to lack of funding within the person’s checking account. Secondly the bank may pay for items out of a courtesy but they will charge a returned item fee and any additional fees. The person will end up paying for many fees and may lose the ability to write checks in the future. The individual also runs a high risk of getting into legal problems and cause their credit rating to tank. The fee of writing a bad check has increased over the years. Some banks charge upwards of $30.00-$40.00 per insufficient fund item. Unfortunately all of these fees can easily add up, causing the individual difficulties to pay the bank for all of the checks they wrote that were returned right back to the bank. The bank may also charge the person overdraft fees which can often cost $35.00 or more and they are charged with interest on top of it.

ChexSystems Details

A person who consistently writes bad checks will end up on a system database called ChexSystems. Banks use ChexSystems as a way to determine if the person is eligible for a banking account. The bank will not allow people to open a checking account because of their problem. The bad report will remain on the person’s list for five years. After five years the bad report on the database will fall off or end. Writing bad checks has the potential to hurt the person’s credit rating and overall credit score as the charged off account will appear on their credit reporting account. ChexSystems has some similarities to credit-reporting companies and it’s also managed by the Fair Credit Reporting Act.

Next Page »