Chandlery sales – Tysbvi http://tysbvi.com/ Wed, 25 May 2022 13:18:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://tysbvi.com/wp-content/uploads/2021/10/icon-2021-10-18T084030.182-120x120.png Chandlery sales – Tysbvi http://tysbvi.com/ 32 32 How to spot predatory lenders https://tysbvi.com/how-to-spot-predatory-lenders/ Wed, 25 May 2022 13:18:29 +0000 https://tysbvi.com/how-to-spot-predatory-lenders/ Loan sharks are illegal moneylenders, often part of organized crime, who threaten and use violence to recover their money from borrowers. Although loan sharks are less prevalent with a drop in organized crime, vulnerable people are still victims of predatory lending. If borrowing money from loved ones isn’t an option, you can consider secured credit […]]]>
  • Loan sharks are illegal moneylenders, often part of organized crime, who threaten and use violence to recover their money from borrowers.
  • Although loan sharks are less prevalent with a drop in organized crime, vulnerable people are still victims of predatory lending.
  • If borrowing money from loved ones isn’t an option, you can consider secured credit cards or second-chance banking as an alternative.

As the name suggests, loan sharks prey on vulnerable people who are in need of money with no other options. They are usually associated with organized crime, which has become increasingly common on television than on the streets.

However, these vulnerable borrowers still exist. Over time, loan sharks evolved into a new technically legal form of lending to take advantage of these people: predatory lenders.

What is a loan shark?

A loan shark is a type of predatory moneylender, often part of a larger criminal organization, who lends money to borrowers outside the law. These loans often come with high interest rates, usually beyond the legal limit set by state law. Reimbursement is usually enforced by threats and the use of violence.

Victims of loan sharks are usually vulnerable people who desperately need money immediately. Either they don’t have time to wait for a loan to be approved, or they can’t qualify for any type of loan. Loan sharks operate locally, so a victim is usually “someone in the neighborhood who knows someone with money on the street,” says Jeffrey Cramer, senior managing director of Signpost Solutions and former New York District Attorney. “The loan sharks don’t advertise. So it’s usually word of mouth.”

How loan sharks work

Most loan sharks offer smaller, short-term loans. “We’re not talking about a mortgage for a house or anything. Usually it’s several hundred, several thousand dollars, money they may owe right now,” Cramer says. This loan comes with high interest rates which are usually insurmountable for people who usually need to look for an alternative financial service.

How to find a loan shark

It is important to know where to find loan sharks, in order to avoid them completely.

Luckily, you’re unlikely to come across a loan shark, mostly because it’s largely collapsed with the decline of organized crime. Cramer also says that most people who borrow from loan sharks know what they’re getting into, but don’t have an alternative, so you won’t accidentally bump into a loan shark.

However, you could quickly find yourself in a similar situation if you take out a loan with a high interest rate. “The loan shark concept has been incorporated into these companies, let’s call them predatory loan companies,” Cramer said. These predatory loans often do not take into account the repayment capacity of the borrower. “They’re not going to break your legs, it’s all done under the guise of the law. They’re going to garnish wages, they’re going to send in a debt collector.”

Alternatives to predatory lending

Loan sharks may be largely a thing of the past, but their potential victims are still very much around. A Morning Consult 2021 survey found that 10% of American adults are unbanked – meaning they don’t have a checking or savings account – and 25% are underbanked – meaning they have an account. savings or checking account, but used an alternative financial service within one year of completing the survey.

These households do not have access to financial institutions for various reasons – they do not trust financial institutions, they are undocumented, they cannot qualify due to past credit errors. A large portion of this group simply cannot afford the associated fees or minimum deposit requirements. “If you can go to a bank or borrow with a credit card, it’s infinitely cheaper,” says Jack Miller, strategic finance adviser at Estate bees and founder of Gelt Financial, LLC. “But there’s a large chunk of the population that’s just underbanked.”

Instead of turning to financial institutions, these borrowers turn to alternative lending companies with high interest rates. Payday loans are a good example. These loans, also known as cash advance loans, give borrowers immediate access to small amounts of money – typically $500 or less – with high interest rates. Repayment is due on the borrower’s next payday.

These loans can be attractive to distressed borrowers because they do not take into account the borrower’s ability to repay the loan. But this interest rate can quickly become a problem if the borrower does not have the funds to repay the lender.

Miller says the best option for the unbanked is to borrow from a loved one, whether it’s a family member or friend. Of course, that might not be an option for everyone because “in a lot of communities, you know, friends and families don’t have that money,” Miller says. If so, here are some alternatives:

Second Chance Bank: Banks often offer a simplified version of a checking account for people with complicated credit histories. The registration process generally skips the credit check, but has some limitations. For example, people with these bank accounts usually do not have access to a debit card to avoid overdraft fees. They also usually come with lower monthly fees and lower minimum balances.

Secured credit cards: Another option for people with verified credit history might be a secured credit card. These are credit cards that are secured by a security deposit that you make when you open the card. These credit cards often overlook credit errors or lack of credit history. The minimum security deposit usually hovers around $200 depending on the credit card, but you can get it back when you close the credit card.

Not only do they offer a line of credit and a chance to rebuild your credit, but they also offer lower APRs than unsecured credit cards because the debt is already covered by that security deposit.

These options do not completely solve the underbanking problem in the United States, but they are a start. “They really need to take every little step they can to push them in the right direction,” Miller said.

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Coralie Chun Matayoshi Explains the Effects of Sea Level Rise on Hawaii Homes https://tysbvi.com/coralie-chun-matayoshi-explains-the-effects-of-sea-level-rise-on-hawaii-homes/ Mon, 23 May 2022 22:50:55 +0000 https://tysbvi.com/coralie-chun-matayoshi-explains-the-effects-of-sea-level-rise-on-hawaii-homes/ Honolulu (KHON2) – Coralie Chun Matayoshi explains the effects of sea level rise on the local real estate sector in KHON2’s latest podcast episode titled “What’s The Law”. According to scientists at the University of Hawaii, Oahu could lose 40% of its beaches over the next 20 years, due to sea level rise accelerated by […]]]>

Honolulu (KHON2) – Coralie Chun Matayoshi explains the effects of sea level rise on the local real estate sector in KHON2’s latest podcast episode titled “What’s The Law”.

According to scientists at the University of Hawaii, Oahu could lose 40% of its beaches over the next 20 years, due to sea level rise accelerated by climate change.

“Sea level rise in itself is not inherently bad for beaches or the cause of beach loss. Instead, it is how we have responded to it, allowing seawalls, sand burritos and other forms of artificial hardening of the shoreline.When the waves hit the walls and sandbags along the beaches, the sand is carried back into the ocean and the beach is eventually washed away. these man-made structures, our beaches could adapt to rising sea levels by migrating inland as the waves get higher and higher,” says Coralie Chun Matayoshi, producer and host of What’s the Law by KHON2.

According to Chun Matayoshi, the public trust doctrine states that beaches belong to Hawaii residents and that the government has a duty to protect natural resources such as beaches for future generations.

Chun Matayoshi says, “For years, the government allowed landowners to apply for waivers to build seawalls, but a law passed in 2020 now prohibits the construction of seawalls and other coastal reinforcement projects. Private owners can still apply for emergency permits to install temporary protections like the sand burrito, but the state must enforce the 3-year limit and not allow them to stay indefinitely. And last year, the legislature passed a bill requiring sellers to disclose to buyers any threat of sea level rise – the law went into effect on May 1.

In addition to the effects of sea level rise, the latest podcast episode of “What’s The Law,” explains why the state legislature chose to get rid of payday loans.

“Last year, the Legislature got rid of payday loans in favor of installment loans that are repaid over time in smaller amounts. The maximum loan amount is $1,500 with a maximum interest rate of 36% and up to $35/month in fees. Lenders must be licensed and follow certain rules, and the new law came into effect at the beginning of this year,” says Chun Matayoshi.

Viewers can listen to “What’s The Law” every Monday via KHON2’s official website.

KHON2 Presents “What’s the Law”

https://www.khon2.com/whats-the-law/

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Letter: The child tax credit should be renewed | Letters to the Editor https://tysbvi.com/letter-the-child-tax-credit-should-be-renewed-letters-to-the-editor/ Sun, 22 May 2022 07:00:00 +0000 https://tysbvi.com/letter-the-child-tax-credit-should-be-renewed-letters-to-the-editor/ As families face rising costs, it’s important to remember how crucial the expanded Child Tax Credit (CTC) has been for children and families. According to a recent study by the Brookings Institution, changes to CTC in 2021, including sending it as a monthly payment, have had a profound impact. Child poverty has fallen by 40%. […]]]>

As families face rising costs, it’s important to remember how crucial the expanded Child Tax Credit (CTC) has been for children and families.

According to a recent study by the Brookings Institution, changes to CTC in 2021, including sending it as a monthly payment, have had a profound impact. Child poverty has fallen by 40%.

CLC recipients led healthier lives, invested more in their children’s education, and were less likely to rely on payday loans. Families spent their CTC payments on their children’s rent, food and clothing – the same costs that are rising for all of us now.

But some lawmakers have halted an extension of CTC payments. As a result, 3.7 million children fell below the poverty line in January. And 1.4 million CTC households have seen their parents leave their jobs because they can no longer afford childcare.

Economists say expanding the CTC is key to helping families facing rising costs from inflation. How much more evidence do lawmakers need before they do the right thing?

People also read…

RESULTS The Oklahoma Volunteers call on U.S. Representatives Kevin Hern, Markwayne Mullin, Frank Lucas, Tom Cole and Stephanie Bice and Sens. Jim Inhofe and James Lankford to extend the CTC with a permanent full refund and resume monthly payments immediately.

Letters to the editor are encouraged. Send letters to tulsaworld.com/opinion/submitletter.

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Eze Munachino, President of Millennium Group, sees better prospects in the real estate market, calls for investment and government support https://tysbvi.com/eze-munachino-president-of-millennium-group-sees-better-prospects-in-the-real-estate-market-calls-for-investment-and-government-support/ Fri, 20 May 2022 12:03:55 +0000 https://tysbvi.com/eze-munachino-president-of-millennium-group-sees-better-prospects-in-the-real-estate-market-calls-for-investment-and-government-support/ Over the past few years, the Nigerian property market has grown exponentially and continues to expand. The growth, according to Eze Munachino, Chairman of Millennium Group, Nigeria’s leading real estate company, is the result of the secure investment opportunities that real estate creates for many Nigerians, whose incomes are now diversified due to the performance […]]]>

Over the past few years, the Nigerian property market has grown exponentially and continues to expand.

The growth, according to Eze Munachino, Chairman of Millennium Group, Nigeria’s leading real estate company, is the result of the secure investment opportunities that real estate creates for many Nigerians, whose incomes are now diversified due to the performance of their real estate.

However, Munachino noted that while investing in real estate, especially in Nigeria, offers countless opportunities including financial prosperity and wealth creation, there are many challenges that can limit what an investor can do and even ability. to invest.

Speaking further, the Chairman of Millennium Group revealed that one of the challenges, which is pretty much the biggest of all, that the real estate industry has been facing lately is affordability.

He argued that with a growing middle class population, rapid urbanization and youthful demographics compared to stronger economies, Nigeria has all the key factors for real estate investment, but despite all this, financing and affordability, he said, remained issues. for real estate developers and future owners.

“Millions of Nigerians are struggling for affordable housing amid the housing boom,” he said.

Explaining the dynamics of the industry, Munachino, said a real estate investment is a financial strategy that involves managing, owning, buying, renting and/or selling property for profit. “Although there are many ways to invest in real estate, they all rely on similar economic factors to make a profit. The first factor is that the property must appreciate in value. owning and maintaining the property should not exceed its appreciation,” he said.

Eze Munachino, President of the Millennium Group

Using the Enugu state property market as a case study, he noted that the Enugu area is characterized by overinflated prices of properties for sale and for rent, while the actual value of property is well lower than the price at which it is rented or sold for. For him, affordable housing is affordable housing for the part of society whose income is below the median household income. Therefore, affordable housing should meet the housing needs of low- and middle-income households, he insisted.

“Affordable housing is becoming a key issue where a majority of the population is unable to purchase houses at market price, this can be compared to what is happening in Enugu where less than 30% of its population can afford a standard house and at least 5% do not have access to housing and in other words more than 5% of the population of Enugu residents do not have housing/housing,” said Munachino .

The implication of development, he says, is oversupply with little or no demand due to exorbitant prices. For most working residents of Enugu, the earning capacity is generally low and makes it virtually impossible for the average person to save to own a home, as well as the dwindling economic fortunes in Nigeria, which reduces the ability of individuals to own a home.

He noted that people’s disposable income remains the main determinant of affordability and therefore the onus is increasingly on the public and private sectors to meet the growing demand for affordable housing.

“Enugu’s housing disparity reflects the huge economic divide in the state. Most of the residents who cannot afford these rents and accommodations live in large numbers in a very large living space, which leads to congestion. Access to decent and affordable housing would provide essential stability to these families and reduce the risk of vulnerable families becoming homeless.”

In his view, affordable housing is important to the economic vitality of communities and therefore affordable homes can attract and retain employees in a community – a selling point and competitive advantage for area employers. Additionally, affordable homes for him also support the local workforce so they can live close to their jobs, as a shorter commuting distance allows workers to spend more time with their families. while the community benefits from a reduction in traffic congestion, air pollution, and expenses on the roads.

By revitalizing communities, building affordable homes, he says, can also help spur economic growth through a healthy mix of housing options, ranging from market-priced and affordable rental units, single-family homes, duplexes , as well as developments for seniors (elderly people), offers opportunities for everyone to improve their economic situation and contribute to their communities.

The need to shed more light on real estate investments, he said, is due to the fact that the notion of affordable housing is widely misunderstood by the public, as myths and misconceptions about affordable housing developments are based on the fear of negative stereotypes, real estate values ​​and change. brings to neighborhoods – all of which are common arguments in opposition to a new affordable housing community.

In reality, the lack of safe and affordable housing is costing Nigerian cities in several dramatic ways. “Cities that fail to provide affordable housing solutions drive away residents, lose potential workers and discourage the growth of their local economies. While those who already have secure and stable housing may not feel the true cost of poverty, the effects are real and can seriously harm our communities,” he enthused.

For him, high housing prices can slow down a local economy, leaving jobs unfilled and reducing a community’s purchasing power. But, when affordable housing is readily available, more opportunities become available to people at all income levels. More money is available for spending in a community, and long-term change can begin to take hold. Listing some factors that determine real estate and rental prices, he attributed them to the price of land and the high cost of construction.

“There is a constant increase in the prices of construction materials and labor on the market.

“When you build, and the cost of construction is high, the sale price or the rental price will have to be high to break even on the investment. Along the same lines, when the price of land is exorbitant, anything built on it will have to recoup the cost of the land and the cost of construction for the investor.

“So when it comes to price control, it comes down to valuation control, valuation fraud control, and inflation control,” he concluded.

But the above factors are where the government and the private sector, he said, should shine their spotlight, if the government is to improve the real estate sector for Nigerians.

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Cadana is accelerating wealth creation for African workers through its pay-as-you-go service. https://tysbvi.com/cadana-is-accelerating-wealth-creation-for-african-workers-through-its-pay-as-you-go-service/ Wed, 18 May 2022 12:36:15 +0000 https://tysbvi.com/cadana-is-accelerating-wealth-creation-for-african-workers-through-its-pay-as-you-go-service/ For most employees, the last week of the month is the most anticipated. The reason is not far-fetched: they are being rewarded for their hard work during this time. Interestingly, many African workers typically spend their wages repaying payday loans within the first week of being paid. This is due to unforeseen life issues they […]]]>

For most employees, the last week of the month is the most anticipated. The reason is not far-fetched: they are being rewarded for their hard work during this time. Interestingly, many African workers typically spend their wages repaying payday loans within the first week of being paid. This is due to unforeseen life issues they must have encountered during the month. These problems expose them to loan alternatives with high interest rates, and they often work all month in distress, which affects productivity.

Albert Owusu-Asare and Ameer Shujjah created Cadana in 2021 to help companies delight their employees by providing modern payroll platforms that allow employees to access their earned pay on-demand anytime. The on-demand pay structure is still in its infancy on the continent, and Cadana is one of the startups advocating for its adoption. The startup is keen to accelerate wealth creation for African workers by making their earnings available when they need it. In an interview with Ventures Africa, Albert Owusu-Asare, CEO of Cadana, spoke about the creation of Cadana and how its system works.

Owusu-Asare was born and raised in Ghana, but studied in the United States of America, where he met Ameer Shujjah, who later became his co-founder and CTO at Cadana. His career in the financial sector did not begin with the creation of Cadana. He had worked at Goldman Sachs Group, Inc. – a leading global investment bank in New York. There he helped many banks with their system and contributed to the Apple Card Project – a joint project between Goldman Sachs and Apple. Subsequently, he became the CTO of Esusu, a unified financial management platform that achieved a unicorn feat. Having acquired valuable and commendable expertise through his experiences in the financial sector, he created Cadana. However, his experience was not the only motivation for creating Cadana.

Her sister’s experience as a worker in Ghana spurred the creation of Cadana. As an employee, she experienced many cash flow problems and it was difficult to meet her needs because many expenses were already accumulated before the end of the month in which she had access to her salary. “It was the attention grabber for me. It was just the passion to come home and help push Africa forward,” Owusu-Asare said.

LR: Owusu-Asare and Ameer Shujjah (co-founders of Cadana)

Typically, most workers are only paid at the end of the month. As is the case with Owusu-Asare’s sister, they become cash-strapped and vulnerable to cash flow problems before the end of the month. With Cadana, workers can request part of their salary before the end of the month. Imagine someone who needs money on May 15 to pay their child’s hospital bills but can’t because their salary is paid on the 27th of every month. To meet the unprecedented pressing need, he could borrow from a third party or loan sharks, which is often inadvisable due to high interest rates. But as a Cadana user, he has access to request his salary before the 27th. However, he does not have access to his entire salary, and he can only access a fraction of what it won according to customs policy. Cadana’s system offers employers the ability to set limits on the percentage of salary available to their employees before the end of the month. Asking pay differs from a payday loan or advance because it is simply a portion of the wages earned by workers.

Surprisingly, the way Cadana works benefits all parties involved. Many working people on the mainland do not have access to savings and credit card, so searching for money when they have to deal with unexpected life issues affects them. With a financial alternative like Cadana, we avoid running from pillar to post to meet needs. Today, employers are constantly trying to do better for their employees and make benefits juicy and attractive to talent in a competitive economy. Pay-on-demand with Cadana is a benefit that employers can offer their employees, especially during tough economic times. For example, the African economy is gradually recovering from the pandemic effect, and in a country like Nigeria, double-digit inflation is being fought. Cadana presents a model that can keep workers in these economies afloat in the sea of ​​financial hardship.

Cadana takes advantage of the wide range of services it renders to businesses in addition to the pay-as-you-go service. The platform helps employers manage their worker data, manage contract letter offers, manage payroll in a compliant manner, and automate pensions and taxes through a software-based system. It also charges a fee of just under a dollar for each transaction employees process on the app. Part of the transaction fees go to the various payment providers who help them facilitate the movement of money.

Anywhere in the world, running a business can be demanding, but it’s even more intense in Africa. The continent faces many challenges such as infrastructure deficit, strict government policies, lack of expertise, etc. Cadana has faced its fair share of continent-specific business challenges. “When you go into a payroll system and you can’t pay people in a timely manner, that has repercussions. We need to ensure the resilience of the money movement infrastructure, which means that we need to work with different payment service providers in all the places where we operate. This is a challenge as we are still in the very early days of payments in general on the continent. It can be tedious to add the local nuances, as in the case of Ghana, where mobile money is very important and where you have to integrate into the ecosystem. We spend a lot of time on integration to make sure we’re working with a resilient infrastructure,” Owusu-Asare explained.

Although the pay-on-demand space in Africa is relatively new, Cadana is not the only startup to offer such a service. However, Owusu-Asare maintains that Cadana is the best among his peers. In the payroll and HR space, a company like SeamlessHR offers the same service as Cadana, and in the on-demand salary space, Earnipay is in the same league. “There are people doing payroll, and people are also trying to do the pay-as-you-go model, but we think the best solution is one that combines those two things. We have built a unique payroll infrastructure in two countries and we also offer a series of employee services. What sets us apart is the ability to deliver value to both employer and employee,” he said.

Speaking from the perspective of demand wage as an innovative wage structure in Africa, Owusu-Asare thinks that flexibility is of the utmost importance. Customers are getting used to instant services and consumer behavior is also creeping into the wage structure. “Today you can pick up your phone and order an Uber or order food from Jumia instantly. Consumers are getting used to this idea of ​​having instant services, so why not your salary, which is the most This is what the future of compensation looks like by creating a flexible payment for workers,”

Owusu-Asare believes that the African continent’s greatest asset is not its oil or its gold, but its people. Offering financial services that would make them prosper is a better way to make an impact. He noted that “when employees are successful, they are more productive. They don’t think about finances, so when I think about our impact across Ghana and Nigeria, we are touching the lives of real working class people making them successful. People testify that they clear hospital bills, pay their debts and invest in a timely manner other than the end of the month through our services. These are tangible impacts that we have on life,”

Cadana has made significant progress in the short time of its inception. From Ghana, where it started, it spread to Nigeria – the most populous black nation on the planet. With a massive market of around 400 million employees in sub-Saharan Africa, the possibilities seem limitless. “We’re just excited to keep growing and making an impact, and we’re on a mission to reach as many of those 400 million people. That means we’ll expand to smaller countries in the future, but we’re working on the steps we need to follow in each country so that we can offer the best service when we go there”,

Owusu-Asare hopes Cadana will be a household name in the future, and that’s key to his global ambition to be operational in different parts of the world.

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New EU consumer credit rules approved by summer https://tysbvi.com/new-eu-consumer-credit-rules-approved-by-summer/ Mon, 16 May 2022 11:59:09 +0000 https://tysbvi.com/new-eu-consumer-credit-rules-approved-by-summer/ A committee of the European Parliament will vote in June on the proposed Consumer Credit Directive (CCD) with a view to obtaining final approval in plenary session before the summer holidays. Lawmakers will discuss proposed amendments to the text tomorrow, May 17. Following the rise of digital lenders and the increasing online distribution of consumer […]]]>

A committee of the European Parliament will vote in June on the proposed Consumer Credit Directive (CCD) with a view to obtaining final approval in plenary session before the summer holidays. Lawmakers will discuss proposed amendments to the text tomorrow, May 17.

Following the rise of digital lenders and the increasing online distribution of consumer credit, the European Commission proposed a revision of the CCD in June 2021. The existing CCD dates from 2008, and although it introduced a a number of consumer benefits, it does include many new lending initiatives widely used by consumers, such as buy now, pay later (BNPL), payday loans or short-term overdraft facilities.

The Commission’s proposal aims to respond to these technological developments by broadening its scope, introducing pricing rules for certain credits, clarifying information requirements and revising creditworthiness assessments.

As regards the scope of the proposal, the existing CCD covers the vast majority of consumer loans, ranging in value from EUR 200 to EUR 75,000. However, loans below EUR 200 do not fall within its scope. This means that many of the BNPL loans that are so widely used these days are not covered by the existing rules. The proposed CCD aims to change this situation by including BNPL schemes, payday loans, short-term overdrafts, interest-free credits and loans offered through crowdlending platforms.

Lawmakers introduced an amendment to remove crowdfunding loans from the proposed CCD. However, they are still asking the European Commission to examine whether these types of crowdfunding platforms require regulation, and if so, to propose a revision of this CCD in 2024.

Information requirements should also be standardized in this proposal. In order to raise consumer awareness and promote responsible lending practices, the proposal aims to streamline and reflect the growing importance of digital services in the pre-contractual phase. The proposal aims to improve the provision of pre-contractual information by requiring lenders to focus more on key information such as borrowing rates and costs, annual percentage rate (APR) and total amount of credit. This information would be summarized in a standard European consumer credit information form (SECCI), and Parliament is amending the form to add information on missed payments and the right of withdrawal.

Still in connection with the information provided, the Parliament proposes the prohibition of personalized advertising and the obligation to show only standardized offers. In addition, the Parliament also suggests that Member States ban misleading advertising which understates the consequences of a loan and which could create over-indebtedness by emphasizing the ease of obtaining a loan.

Perhaps one area that could have attracted industry opposition is price regulation or caps on consumer loans, but the proposed CCD still leaves wide latitude to member states to regulate this space. In the absence of EU-wide regulation for certain loans, most member states have introduced interest rates or APR caps. Some drafts of the new proposal included caps on interest rates, APRs and the total cost of credit agreements, but the final proposal leaves the decision on the level of caps to member states. Countries will have the option, but not the obligation, to impose caps if they deem it appropriate.

Credit assessment is another important area where the new CCD aims to harmonize practices between Member States. The new regulations will tighten the rules and require lenders for all loans to carry out a credit check. For example, the Parliament and the Commission agree that data from social media should never be used in these assessments, and they propose a list of objective financial data that can be used for these purposes. Health data may also be subject to restrictions. The parliament proposes to prohibit the use of data on the health and medical situation of the consumer or his history of cancer.

Read more: EBA warns against non-bank lenders and recommends regulatory changes

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NEW PYMNTS DATA: THE TRUTH ABOUT BNPL AND STORED CARDS – APRIL 2022

On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

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Virginia Court Approved $489 Million in Aid for Victims of Illegal Internet Payday Loans https://tysbvi.com/virginia-court-approved-489-million-in-aid-for-victims-of-illegal-internet-payday-loans/ Sat, 14 May 2022 13:20:37 +0000 https://tysbvi.com/virginia-court-approved-489-million-in-aid-for-victims-of-illegal-internet-payday-loans/ RICHMOND, Va. (WRIC) – The federal court in Richmond has given preliminary approval to a class action settlement that would provide $489 million in relief to victims of illegal internet lending. The ruling was released Thursday, May 12, and will affect approximately 555,000 consumers who have been charged more than 600% interest on loans by […]]]>

RICHMOND, Va. (WRIC) – The federal court in Richmond has given preliminary approval to a class action settlement that would provide $489 million in relief to victims of illegal internet lending.

The ruling was released Thursday, May 12, and will affect approximately 555,000 consumers who have been charged more than 600% interest on loans by predatory internet payday lenders.

Litigation against predatory lenders began more than three years ago when a coalition of law firms, including the Virginia Poverty Law Center, Kelly Guzzo and Consumer Litigation Associates, came together to address the ongoing challenge of lending illegal wages.

“These law firms have taken the illegal lenders to court,” said Jay Speer, executive director of the Virginia Poverty Law Center. “We are very grateful for their tenacity and passion in engaging in this three-year fight for today’s settlement.”

Today’s settlement is one of many these law firms have secured with illegal internet lenders in recent years, including a $433 million settlement in 2019.

The proposed settlement provides $450 million in consumer debt forgiveness that will be paid in cash for most consumers.

The settlement will also set aside $39 million for the creation of a common fund for those who have repaid illegal amounts.

Settlement Class Members will not need to submit a Claim Form and will receive notice by email or US Mail.

In addition to litigation, VPLC helps borrowers through the organization’s predatory lending hotline to 866-830-4501 and advocating for better laws to protect borrowers.

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District 41 Candidates Discuss West Taos County | Policy https://tysbvi.com/district-41-candidates-discuss-west-taos-county-policy/ Thu, 12 May 2022 15:40:00 +0000 https://tysbvi.com/district-41-candidates-discuss-west-taos-county-policy/ Two candidates vying for the District 41 seat in New Mexico debated Monday night (May 9) at a forum hosted by the Taos County Democratic Party. Incumbent Susan Herrera and newcomer Marlo Martinez are both competing to represent House District 41, which, while primarily encompassing Rio Arriba County, also includes western portions of Taos County […]]]>

Two candidates vying for the District 41 seat in New Mexico debated Monday night (May 9) at a forum hosted by the Taos County Democratic Party.

Incumbent Susan Herrera and newcomer Marlo Martinez are both competing to represent House District 41, which, while primarily encompassing Rio Arriba County, also includes western portions of Taos County including Tres Piedras, Carson, a part of Arroyo Hondo and Ojo Caliente.

A rift between the two candidates became clearer as they debated topics ranging from renewable energy to gun regulations.

Herrera, who was elected in 2018, said she was strongly opposed to pursuing long-term oil and gas development in New Mexico, but added that “it’s a careful needle that we have to thread.” She said she hopes to bolster the state’s renewable energy fund and invest more money in rural infrastructure development.

She said the way to do that legislatively is to look at examples like Kit Carson Electric Cooperative. “You have to have leadership at the local level… [KCEC] is not just a model in the state, but a model in the nation,” she said, adding that she would encourage all rural cooperatives to pursue similar goals.

Martinez agreed the transition was necessary, but said “New Mexico’s state budget is dependent on oil and gas at about 40% of the budget. I think we need to carefully move from oil and gas to renewable energy, maybe subsidizing solar power for homes. He noted that subsidizing solar energy at the federal level would also go a long way in facilitating this transition.

Taos County Democratic Party chairman and host Darien Fernandez asked each candidate if they had accepted campaign donations from oil or gas companies. Martinez said yes, and again stressed the importance of a slower transition. “We kind of abruptly cut oil off because they’re a lifeline for New Mexico,” he said.

Herrera said she hadn’t taken any fossil fuel contributions to her knowledge and said she mostly self-funded her campaign. “I never wanted a lobbyist to look me in the eye and say, ‘Hey, I paid that much, where’s my refund?’ I really haven’t needed their money in the past and I don’t think I will need it in the future,” she said.

Martinez replied that “[Representative] Javier Martinez and the President [of the House, Brian Egolf] give money to my opponent, and they take money from oil and gas… I think oil and gas can invest in renewable energy. I don’t see why they can’t.

When asked about their legislative priorities and the direction in which they would focus, the candidates again showed differences.

Martinez said his top priority would be to bring more funding to the district. “For example, Arroyo Hondo [has] a center there that needs kitchen facilities to be active,” he said, referring to the defunct Arroyo Hondo community center. “There are also a lot of complaints about the roads in this area that they need to be repaired.”

He said his other priorities would include funding youth programs and broadband access, as well as addressing behavioral health issues, low graduation rates and criminal justice reform.

“I’m looking at millions and millions and billions of dollars for water infrastructure in the state. I think that’s the number one problem for our rural communities,” Herrera said. “My big push is on rural water infrastructure and that’s gearing up for this huge, huge amount of infrastructure [money] it comes from the federal level.

Herrera also said she remains focused on fixing the Arroyo Hondo Community Center now that the title has passed to the appropriate party.

While Taos County is only a small portion of District 41, it still encompasses several local communities, and each contestant was asked how much time they spend watching the Taos County portion of the district. Herrera said she always gives legislative updates to the various municipal bodies in her district and said she tries to work on capital spending projects with her respective state senators and representatives from surrounding districts.

“I think the down payment is really part of the amount of money needed in my district,” Martinez said. “I think we need a lot more money, as I mentioned earlier, to do some of the things that we need to do in this district.” He agreed, however, that the right approach is “needs-based and works hand-in-hand with each community”.

On water and allocating money to water rights, acequias and sustainability, both candidates were in agreement, saying more funding should be sought, especially at the federal level. .

The subject of state reimbursement checks was also brought up, with Martinez saying he felt the money could be better spent on infrastructure. “One trip to the grocery store and your $500 is gone,” he said. “I would say it’s better to invest $700 million and leverage that $700 million with the feds or other entities to get over $1 billion so we can solve our problems in our state. .”

Herrera, who voted for the family discount bill, said she recognizes the poverty in her district. She said that, faced with a budget surplus, she thought about getting immediate help for the families. “I think right now we had to look after poor working families, and that’s kind of what I represent – ​​working families. Five hundred dollars might not mean much to everyone on this Zoom, but it certainly means a lot to a family trying to decide whether to pay the rent or the grocery bill.

Arms control presented another split among the candidates. Herrera said she had many discussions in which gun violence was brought up. “In every one of those meetings, someone said, ‘What are you going to do about gun violence? What are you going to do and how are you going to fix it?'” she said. stop this crazy system we have.” She said she was in favor of background checks and proper registration.

Herrera clarified “no one is talking about banning the hunt…I have a family of hunters and we draw to get an elk and it’s a huge family tradition.”

Martinez admitted his district was pretty “armed up” and said he wasn’t sure how he would vote on a law banning assault rifles and extended magazines. “I don’t know if it will solve the problem if you don’t deal with behavioral health issues… We just put people in jail and we don’t pay attention to them,” he said.

The contestants were allowed to ask each other one question, at which point Herrera quizzed Martinez on the reason for his candidacy. “I’m really curious why you’re running against me because, in fact, we agree on 95% of the issues,” she asked.

” It’s not against you. It’s for the job. I think voters deserve to have a choice. I think with my life experience, I would do a good job… Money is spent where it shouldn’t. We have needs like fire victims and our infrastructure and our schools and our water,” he replied.

He then asked Herrrera why she told credit unions he was in favor of payday loans. “I’m not in favor of payday loans,” he said.

“I never told anyone you were for predatory lending,” she replied, adding that she had heard that Martinez was backed by someone who was into predatory lending.

In closing, Herrera said she felt she had done a good job representing the 41st District for the past four years. She noted her progress toward drug treatment centers in Española and a drug rehabilitation center in Taos County. “I’m proud of what I’ve achieved so far.”

Martinez said he felt he was the man for the job. “I think I can do a better job because I have business experience, I have common sense, I know people’s needs, I’m from northern New Mexico, and I know the county of Taos. As a small business owner, I go to Taos every week…I just don’t think we’re fast enough to move in the right direction.

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Who regulates home equity loans? https://tysbvi.com/who-regulates-home-equity-loans/ Tue, 10 May 2022 19:32:15 +0000 https://tysbvi.com/who-regulates-home-equity-loans/ A home equity loan, also called home equity loan, home equity installment loan, or second mortgage, is a type of consumer debt. Home equity loans allow homeowners to borrow against the equity in their home. The loan amount is based on the difference between the home’s current market value and the homeowner’s mortgage balance. These […]]]>

A home equity loan, also called home equity loan, home equity installment loan, or second mortgage, is a type of consumer debt. Home equity loans allow homeowners to borrow against the equity in their home. The loan amount is based on the difference between the home’s current market value and the homeowner’s mortgage balance.

These types of loans carry risks. Home equity loans force mortgage holders to put their homes at risk if they do not repay the loan. And since property is often a family’s most valuable asset, defaulting on a home equity loan can have serious consequences. Because of these risks, home equity lending is relatively tightly regulated by both state and federal agencies.

In this article, we will examine the regulatory environment for home equity loans and explain which federal agencies control which of these loans.

Key points to remember

  • Many rules affect home loans: federal regulations, state laws, and codes of conduct issued by industry organizations.
  • The federal agency that regulates a specific home equity loan depends on the agency issuing the loan.
  • Home equity loans can be issued by banks and credit unions, as well as several other types of financial institutions. Each is regulated by a different body.
  • If you believe a lender has acted in violation of the law, a good place to start is to contact the Consumer Financial Protection Bureau (CFPB) or the US Department of Housing and Urban Development (HUD). Either agency may be able to tell you where to file a complaint.

Home Equity Loan Regulation

There are basically two main sources of home equity loan regulation: individual states and the federal government.

There are a number of federal laws relating to home equity loans. These include the Truth in Lending Act (TILA), which details how this type of loan can be sold and provides consumers with some key rights when it comes to working with them. Another key piece of mortgage regulation is the Property Settlement Procedures Act (RESPA). This law was enacted by Congress so that buyers and sellers would be aware of the full settlement costs of buying a home. Then there are laws like the Dodd-Frank Wall Street Reform and Consumer Protection Act, which Congress passed in the wake of the subprime mortgage meltdown that contributed to the 2007-2008 financial crisis. .

Additionally, each state in the United States has laws that affect home equity loans in some way, and these are constantly changing. There is indeed a manual in several volumes published each year, Pratt State Regulations on Second Mortgages and Home Equity Loanswhich gives an overview of these laws.

In short, many rules and regulations apply to home equity loans, and the same loan can be subject to several different regulators.

Who regulates home equity loans?

Just as there are many rules and regulations that affect home equity loans, there are also many organizations that can regulate any given loan. This is because home equity loans can be issued by a wide variety of financial institutions; banks and credit unions are most common, but home equity loans can also be obtained from commercial or agricultural lenders. Each type of institution has its own regulator who is ultimately responsible for monitoring the loans they make.

Here are the most important of these regulators:

Regulatory agency Regulated entity(ies) Phone/Website
Federal Reserve Consumer Aid PO Box 1200 Minneapolis, MN 55480 Federally Insured State Chartered Bank Members of the Federal Reserve (888) 851-1920 www.federalreservecon-sumerhelp.gov
Consumer Financial Protection Bureau (CFPB) PO Box 4503 Iowa City, IA 52244 Deposit-taking institutions and insured credit unions (and their affiliates) with assets greater than $10 billion, and non-custodial institutions such as mortgage originators, mortgage brokers and managers, large participants other financial services products, private education loan providers and payday lenders (855) 411-2372 www.consumerfinance.gov
Office of the Comptroller of the Currency (OCC) Customer Assistance Unit 1301 McKinney Street Suite 3450 Houston, TX 77010 National banks and savings banks/federally chartered associations (800) 613-6743 www.occ.treas.gov www.helpwithmybank.gov
Federal Deposit Insurance Corporation (FDIC) Consumer Response Center 1100 Walnut Street, Box #11 Kansas City, MO 64106 Federally-insured state-chartered banks that are not members of the Federal Reserve (877) ASK-FDIC or (877) 275-3342 www.fdic.gov www.fdic.gov/consumers
National Credit Union Administration (NCUA) Consumer Assistance 1775 Duke Street Alexandria, VA 22314-3428 Federally chartered credit unions (800) 755-1030 www.ncua.gov www.mycreditunion.gov
Federal Trade Commission (FTC) Consumer Response Center 600 Pennsylvania Avenue, NW Washington, DC 20580 Finance companies, retail stores, car dealerships, mortgage companies and other lenders, and credit bureaus (877) FTC-HELP or (877) 382-4357 www.ftc.gov www.ftc.gov/bcp
Farm Credit Administration Office of Congress and Public Affairs 1501 Farm Credit Drive McLean, VA 22102-5090 Agricultural lenders (703) 883-4056 www.fca.gov
Small Business Administration (SBA) Consumer Affairs 409 3rd Street, SW Washington, DC 20416 Small business lenders (800) U-ASK-SBA or (800) 827-5722 www.sba.gov

Each of these regulators oversees a different type of lender, and some lenders are covered by multiple federal agencies in addition to state regulators.

Does Reg Z apply to home equity loans?

Yes. Regulation Z is a federal law that standardizes how lenders pass on the cost of borrowing to consumers. It also limits certain lending practices and protects consumers against deceptive lending practices. It applies to residential mortgages, home equity lines of credit, reverse mortgages, credit cards, installment loans and some student loans.

How does a mortgage loan work?

A home equity loan is a loan for a set amount, repaid over a set period of time, which uses the equity in your home as collateral for the loan. If you are unable to repay the loan, you risk losing your home to foreclosure.

Are there state laws on home equity loans?

The essential

There are many rules that affect home equity lending: federal regulations, state laws, and codes of conduct issued by industry organizations. The federal agency that regulates a particular home equity loan depends on the agency that issued the loan. Home equity loans can be issued by both banks and credit unions, as well as several other types of financial institutions, and each is regulated by a different body.

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FINANCIAL LITERACY NEW LEAP A1 | https://tysbvi.com/financial-literacy-new-leap-a1/ Sun, 08 May 2022 21:30:06 +0000 https://tysbvi.com/financial-literacy-new-leap-a1/ Studies have long shown that high school students are woefully misinformed about personal finances and how to manage them. But the COVID-19 pandemic, which has revealed how many American adults are living on the financial edge, has spurred ongoing efforts to make financial literacy classes a school requirement. Seven states now require a stand-alone financial […]]]>

Studies have long shown that high school students are woefully misinformed about personal finances and how to manage them. But the COVID-19 pandemic, which has revealed how many American adults are living on the financial edge, has spurred ongoing efforts to make financial literacy classes a school requirement. Seven states now require a stand-alone financial literacy course as a high school graduation requirement, and five more state requirements come into effect within the next year or two. About 25 warrants at least some financial training, sometimes as part of an existing course. This year, about 20 other states have considered establishing or expanding similar rules.

Opponents of state mandates say the requirements, while laudable, may encroach on the limited time available for other high school electives and would impose costly demands on teacher training or hiring. Nevertheless, financial literacy courses are gaining ground.

“I think there’s a lot of momentum now; many more states have legislation pending,” said Carly Urban, an economics professor at Montana State University who has studied financial literacy. In seven states — Alabama, Iowa, Missouri, Mississippi, Tennessee, Utah and Virginia — “almost all schools require it,” she said, though some graduation prerequisites don’t come into play. force only in 2023.

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Over the past two years, Nebraska, Ohio, Rhode Island, and most recently Florida have passed laws making financial literacy a staple in high schools within a year or two. In North Carolina, graduation requirements take effect in 2023.

Thirty-four states and the District of Columbia introduced bills addressing financial literacy in the 2021-22 legislative sessions, according to the National Conference of State Legislatures. Of these, about 20 focus on secondary schools.

The Kentucky and District of Columbia bills appear to take into account that student-athletes are now allowed to earn money for the use of their name, image or likeness. None of the measures require secondary schools to teach financial literacy. But the Kentucky bill, which the governor signed into law, requires colleges to set up financial literacy workshops for student-athletes. The DC bill would encourage colleges with student-athletes to teach financial literacy.

Last month, Republican Florida Governor Ron DeSantis signed a bill calling for students entering high school in the 2023-24 school year to take a financial literacy course as a condition of graduation. . The new law provides a half-credit course on personal money management, including how to open and use a bank account, the meaning of credit and credit scores, types of savings and investments and how to get a loan.

At a signing ceremony, DeSantis touted the law as something that “will help improve the ability of students in financial management, when they find themselves in the real world.”

Financial literacy is an issue that is remarkably bipartisan. Rhode Island Gov. Dan McKee, a Democrat, sounded a lot like DeSantis when he signed Rhode Island’s requirement for financial education in high schools last year.

“Financial literacy is key to a young person’s future success,” McKee said. “This legislation paves the way for our public high schools to provide young people with the skills they need to achieve their financial goals.”

Urban, from Montana, said state policies that require stand-alone financial literacy courses help students the most, especially if states set standards on what topics should be included in the curriculum. . Most courses last one semester.

Some states are using materials provided by the nonprofit Next Gen Personal Finance — which offers a free study guide and educational materials for teaching financial literacy — to help set the standards, while d Others have expanded units already included in economics, math, or social studies courses.

Next Gen’s free courses include tutorials for teachers, plus in-class study guides on topics like managing credit, opening checking and savings accounts, budgeting, paying for school academics, investing, paying taxes and developing consumer skills.

In a 2018 study, only a third of adults could answer at least four out of five financial literacy questions on concepts such as mortgages, interest rates, inflation and risk, according to the Foundation for Financial Literacy. Financial Industry Regulatory Authority Investor Education. Financial literacy was lower among people of color and youth.

According to the Organization for Economic Co-operation and Development, about 16% of 15-year-old American students surveyed in 2018 did not meet the basic level of financial literacy skills.

But with a little education, those numbers can improve, according to Urban studies.

“The results are striking,” she said in a phone interview. “Credit scores go up and delinquency rates go down. If you’re a student borrower, you go from low to high interest, you don’t accumulate credit card debt, and you don’t use private loans, which are more expensive. Additionally, his research found that young people who have taken financial literacy courses are less likely to use expensive payday loans.

The COVID-19 pandemic has underscored how few Americans are prepared for financial emergencies, giving new impetus to financial literacy requirements, according to John Pelletier, director of the Center for Financial Literacy at Champlain College in Vermont. “COVID woke people up,” he said in a phone interview.

He cited a 2020 Federal Reserve study that showed many Americans couldn’t come up with $2,000 in an emergency, and “it really hit home when people were forced off work. and collect a paycheck. If policymakers haven’t found a way to get money from people, we’re dealing with more than just paying the rent; we face hunger and homelessness.

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