Consumer finance – Band H Lock Wed, 01 Dec 2021 20:33:23 +0000 en-US hourly 1 Consumer finance – Band H Lock 32 32 Survey: 90% of borrowers regret having taken out a personal loan Wed, 01 Dec 2021 20:00:00 +0000 results show 80% say their short-term loan made their financial situation worse instead of helping them

Low-income households see savings as impossible, but with the right strategy, it is possible to build up an emergency fund that can avoid the need for payday loans.

– Dr Robert H. Scott III, Professor at Monmouth University

AUSTIN, TEXAS, USA, December 1, 2021 / – Payday loans are a common source of quick cash for low income borrowers in the United States

They are so popular that there are approximately 23,000 payday lenders across the country, double the number of McDonald’s restaurants in America. Loans are lucrative for payday lenders – it’s a $ 9 billion industry – but expensive for borrowers. The national average annual percentage rate (APR) is 400%, but that’s just the start. Most borrowers cannot afford to repay the original loan, which can trap them in a long-term debt cycle.

And that leads to long term regrets. How much? To mark International Banking Day on December 4th, set out to learn. We surveyed over 250 Americans Sept. 8-14 to study the impact of payday loans on borrowers.

Here are the main conclusions:

They do not improve financial well-being: over 90% of respondents said they regret taking their initial loan. About 80% of those surveyed said their payday loan left them worse off than before they took out the loan. This can be particularly troubling in cities with payday loan problems.

Borrowers don’t use them for emergencies: only about 23% of those polled said they used the money to cover a sudden, unexpected expense, like a car repair or a medical bill. The majority used them to cover daily expenses like groceries, credit card bills, utility bills, rent or mortgage, gasoline or prescription drugs.

Short-term loans don’t help in the long term: Around 65% of those surveyed said they had to avoid paying another bill to pay off their loans. This is particularly troubling given that a previous investigation by DebtHammer found that 58% of Americans expect to take out a payday loan or other short-term loan to pay for their holiday season.

Read the full report on:

DebtHammer is an industry leader in the fight to get Americans out of debt.

Please email for more information or to schedule a phone or video call with DebtHammer Founder and CEO Jake Hill.

Feel free to embed any of the visuals included in the report on your website, or use or modify the raw files as needed. Full data sets are available on request.

Advice from the experts:

What do you think is the biggest financial challenge Americans face today?

Many Americans continue to struggle with the lack of savings. The COVID pandemic has added additional factors and we are now increasingly aware of the relationship between financial health and physical health which is still poorly understood. In addition, there is a lot of uncertainty given that expiring benefits are difficult to know what will follow.
Dr Matthew Harding
Professor of Economics and Statistics & Director of the Deep Data Lab, University of California, Irvine (responses are in collaboration with Professor Giacomo De Giorgi, Director of the Institute of Economics and Econometrics at the Geneva School of Economics and Management, University of Geneva.)

Many Americans are struggling to get out of debt. What do you think they should prioritize?

The cycle is an existential threat to their livelihoods. They must end it or they will be wiped out. It gets worse over time, so it’s essential to stop as soon as possible. People tend to rationalize bad financial decisions and keep making them to justify these rationalizations. It’s best to just recognize a mistake – we all make mistakes – and then decide what is the best course of action for the future. Of course, for many people, they may be quite aware of their predicament but feel unable to do anything about it.
Dr Alexander Brown
Professor, Department of Economics, Texas A&M University

Rebecca stumpf
write us here

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Benefits of Payday Loans – BOSS Magazine Mon, 29 Nov 2021 23:46:11 +0000 Reading time: 2 minutes

Payday loans are short term, high interest loans that cash strapped people take out to meet their needs. The risks of payday loans may seem quite high but compared to their benefits, the risks seem low. Many people with low incomes (less than $ 40,000 per year) typically take out payday loans. Some 12 million Americans, mostly young people (ages 20-30) who are studying or settling into a new life. There are payday lenders in many US cities and you can take payday loans in cleveland, California, Texas, New York, virtually anywhere. Let’s talk about some benefits, now that we’ve removed the basics.


Payday loans are a great way to deal with unforeseen costs that you didn’t see coming. They are quick to get and easy to take because most lenders promise cash flow within the next 24 hours. The interest rates on payday loans are higher than many other types of loan programs. However, they more than make up for their quick uptime and the convenience they offer.

The biggest problem most people face when applying for a loan is the fear of rejection, but in the case of payday loans all you need to provide is basic personal and financial proof, and you can. get a loan. Many times even a poor one credit rating does not hinder your qualification when applying for a loan, and it is established that when you pay off the loan with interest, it will simply be part of your next paycheck.


In the case of payday loans, you may wonder if it is safe to provide sensitive personal and financial information to the lender, but rest assured, lenders cannot share your information with anyone without your consent. even for marketing purposes, as this is a legal offense. All you have to do is go to the website, fill out a form, and wait for approval. It is literally that easy. There are no additional costs, hidden charges and obligations. It is very easy to apply for and receive loans and all people can be considered eligible to receive these funds.


Many loan companies use brokers or middlemen to complete the transaction, and middlemen typically take around 10-15% of the transaction. Payday loans remove this cost by eliminating the need for intermediaries. The need for intermediaries is already drastically decreasing due to the ongoing transition of business transactions to the Internet.

Payday loans go a step further because no complicated paperwork is required. You can contact the lender directly and be considered eligible to receive the loan. As soon as your loan application is approved, the money is transferred directly to your bank account. Some lenders may require you to set up a recurring payment plan, which allows lenders to withdraw their contributions directly from your account. This plan is suitable for those who don’t want to micromanage their money. You might think it’s risky, but don’t worry, this is a regulated industry.

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Payday Loans Using The Internet At Ca. Providers That Provide Payday Advances Française | Sun, 28 Nov 2021 00:01:31 +0000 Payday Loans Using The Internet At Ca. Providers That Provide Payday Advances Française |

We have removed some companies from your own databases in the past few months.

It offers tough lending rates and many payday finance institutions and liberal loan providers do not support the condition much more. Use our personal paper on California Online Financial Institutions for the best. First and foremost, it is important to get your hands on a company that offers the ultimate rate and the refund consideration! We all anticipate that several companies will provide cash advance payday loans again whenever we move forward to 2021.

MyPaydayLoan: MyPaydayLoan is an example of a long-standing immediate loan provider just starting to provide Internet finance in California. By 2020, they will be offering payday advances of around 1250 for the citizens of Ca. Upon approval, you will get the funds in several hours or less. Different people need to plan for a real financial financial account (no prepaid tracking accounts or benefit seeking). Make sure you provide verifiable month-to-month money.

5kFunds: They have been operating for a long time and have really served thousands of Californians for an online consumer loan of around 500-5,000. 5k also offers payday advance loans and peer-to-peer financial support with ready. The application form type methods give 5-10 hours and you also manage to generate income in a day.

Reliability Pink Loan Products: Azure has come to be a net loan company that offers quick unsecured loans up to 2,500 in California. They already have straightforward online treatments and generally localized financial investments to your levels all at once upon approval. Recommended a verifiable source of quick deposit income and a functioning financial bank account. The unique financial products are simply because within six months and there is no prepayment penalty.

Take a look at the money: You probably watched the ads for girls or were influenced by their many stores during the problem.

The good thing is that they also offer a quick payday loan substitute for users with really bad credit. Look at the revenues have been around for decades and also now great customer service with fast internet processes. CIC offers wage enhancements online with one-day financing available to Ca homebuyers.

Opploans: Opploans is embarking on another internet business that prides itself on delivering sustainable customer service and fasting fundraising events. Opploans has fund interest levels that can be 120% cheaper than what you specifically see with other companies. Today they are announcing installment loans of 2,600 or more with keywords for repayment of one to two years.

Experience generating problems getting a payday loan or release using the following web lenders? Almost all clients can be considered to have more than one or two cash advance loan providers listed on this site, but some might have eligibility issues due to bad credit or cash advance difficulties in pain. If you are a California resident with poor credit that creates internet payday loan eligibility issues, you may want to study LendYou. They work with over 75 major lenders offering payday advance loans in California to authorized individuals regardless of poor credit, Chexsystem report or past use of unsecured guarantor loans.

LoanbyPhone: You can get Internet payday loan from LoanByPhone with your cell phone or desktop and find money in the loan company within one day. People in California can take on profit debts of up to 255 with repayment terms of two to three weeks on average. I wanted a bank account that had been open for about two months with proof of earnings from work or pension.

Less Than Perfect Funding: BadCreditLending connects Californians with online loan providers that offer instant payday loans in the amount of 1000. Terrible credit is nice, but you will most likely identify a significantly less than 1 proposition. 000 with an apr. You must write 1,200 per month and have an immediate deposit as early as possible with a checking account to meet the requirements.

Payment: Take advantage of FLEX capital online for buyers at Ca. With flexible currency, you create a credit card application for a line of debt that matches your own needs. The amount provided today was between 7,000 and 30,000. As soon as you are approved, you can get personal line of credit money when needed. You can choose to pay the balance entirely without a prepayment charge.

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The Payday Lender Battle: A State Bank’s Game Thu, 25 Nov 2021 12:03:04 +0000

It’s a problem that many people face: the need for short-term cash before their next paycheck. Payday lenders often charge high interest rates and fees, which can put borrowers in a worse financial position than when they started out. But what if there was another option? Imagine having access to an online bank that offered payday loans with lower interest rates and no hidden fees – that would be like giving consumers the right to choose again! This blog post explains how the State Bank of Texas could challenge payday lenders by offering low-cost loans to customers statewide.

Why is a state bank better than payday lenders?

It’s a problem that many people face: the need for short-term cash before their next paycheck. Payday lenders often charge high rates and fees, which can put borrowers in a worse financial position than when they started. But what if there was another option? Imagine having access to an online bank that offered payday loans with lower rates and no hidden fees – that would be like giving consumers the right to choose again! This blog post explains how the State Bank of Texas could challenge payday lenders by offering low-cost loans to customers statewide.

What’s the downside of state-owned banks for customers and why might it not be as good as people think it is?

Currently, there are not enough banks or credit unions to meet demand in every state across the country. And while state-owned banks would offer lower rates and fees than payday lenders, they could still have higher rates than traditional banks, which could worsen consumers’ finances.

The State Bank of Texas could seek a reduction in licensing fees that other financial institutions pay if it succeeds in challenging payday lenders with its low-cost loans. But critics say this kind of “compromise” should be offered to all existing financial service providers, as only new players will benefit from reduced licensing costs. For clients who cannot find an affordable loan through SBOs because their needs exceed what these companies offer, the trade-offs mean fewer resources available in the industry to help the millions of people who need short loans. term today.

For the State Bank of Texas payday loan rates and fees to be competitive with payday lenders, it may need more than just a reduction in licensing costs – perhaps. also be tax breaks that could reduce its income enough to offer customers lower prices. interest rates and fees.

State banks can provide payday loans at lower rates and fees than payday lenders, but the interest rates are not as good as those of traditional banks. “If consumers cannot find an affordable loan through SBOs, the industry may have fewer resources to help them meet their short-term credit needs. This could worsen the financial situation of consumers, ”said Ozren Casillas of Consolidation Now. State Bank of Texas payday loan rates and fees may need to be competitive with payday lenders for payday loans to be affordable enough for the bank to offer customers interest rates and fees. lower.

How would a state bank be better for consumers than traditional banks?

At present, payday lenders are the only option for many consumers who are in need of short term loans. Traditional banks offer payday loans at high rates with hidden fees that put customers in a worse financial situation than when they started out – it’s like leaving them no choice! If the state Bank of Texas can successfully challenge payday lenders by offering low cost loans on reasonable terms to customers statewide, more people will have access to secure and affordable credit options. This would be great news for those who cannot find an affordable loan from traditional banks because their needs exceed what these companies offer; as well as anyone else struggling with debt due to unforeseen expenses or other issues beyond their control.

The biggest advantage is that state banks could reduce interest rates by reducing the license fees that payday lenders are required to pay. While payday lenders should still charge high rates if they want to make a profit, state banks could offer much lower interest rates without wasting money due to the reduced costs, meaning that customers will have better access to affordable credit options, especially those who can. You can’t find an affordable loan from traditional banks for reasons such as their needs beyond what these companies offer or other financial issues beyond their control.

However, it may take more than just a reduction in license fees to make payday lenders’ rates and fees competitive with payday lenders – perhaps also tax breaks that could reduce income enough. to offer customers lower interest rates and fees. The biggest challenge is not only to become sustainable, but also to provide customers with the services they need at affordable rates.

The advantages of having a state bank over private banks

The main advantage of having a state bank instead of a private bank is that payday lenders would not be able to offer lower rates and fees than traditional banks because the licensing costs are too high. As a result, more people will have access to affordable credit options, especially those who cannot find an affordable payday loan from payday lenders or traditional banks.

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Call for urgent regulation of UK buy-now, pay-on-pay lenders | Loan and debt Tue, 23 Nov 2021 22:30:00 +0000

Lenders who buy now and pay later should be urgently regulated to prevent young consumers from taking on a mountain of debt they might not be able to afford, Labor MP Stella Creasy said.

Creasy, MP for Walthamstow, called a debate in parliament on Tuesday to draw attention to the rapid growth of companies like Klarna.

“I am concerned that the speed at which this industry is moving, with the failure of the government to act so quickly, will have very serious repercussions for consumers this Black Friday and this Christmas,” she told The Guardian, before the debate.

“I think the politicians took comfort in that during the pandemic people paid off their debts, they saved more, they could be in a stronger financial position – but it was only the people who had money to spare. in the first place who were in this position. And there is a growing inequality that we haven’t seen.

She added: “You already have a smoldering fire in debt, and there were people before the pandemic who used high-cost credit cards and loans to cover their costs – who were already spinning and juggling. And in that picture has come a new form of credit, which is being marketed aggressively and being pushed down their throats with no protection whatsoever. “

Buy-now-pay-tard (BNPL) allows consumers to pay for goods in installments instead of covering the full cost up front, and many traditional retailers now offer it to customers as part of their purchases in line.

Citizens Advice, which also calls for the industry to be regulated, recently warned that one in 10 people expect to rely on buy now-pay later to meet Christmas expenses.

Businesses charge no interest, but borrowers who are unable to repay may be charged late fees and be sued by debt collectors.

Research from Citizens Advice found that one in 10 BNPL users – or one in eight younger users – had been sued by a debt collector in the past year. Its policy director, Matthew Upton, recently described its use as “like quicksand”.

Creasy called on retailers to stop using BNFL until it is properly regulated.

The government agreed to regulate BNPL’s lenders after an independent review chaired by city expert Christopher Woolard, published in February, warned the sector represented “significant potential harm to consumers.”

But Creasy points out that the Treasury only released a consultation on how to do it last month, which is not expected to end until the new year, and will be followed by a separate consultation by the regulator, the Financial Conduct Authority ( FCA).

By that time, she says, young consumers will have incurred millions of pounds more in debt.

Creasy had previously campaigned vehemently against payday lender Wonga, which eventually took office after a government crackdown, amid allegations of irresponsible lending.

A spokesperson for Klarna said: “UK consumers are choosing BNPL as a more responsible payment method, saving them money and helping them manage their finances compared to alternatives like credit cards. We offer interest-free, fee-free, short-term BNPL products with structured repayment plans, keeping people out of debt.

An FCA spokesperson said it was vital that the law adapt to the changing nature of the credit market. “We plan to consult on the new rules shortly after the Treasury consultation ends and they have decided which businesses and activities will be regulated. We are already working on what our regulation of these companies will look like, ”they added.

The Treasury has been approached for comment.

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True Credits Raises $ 30 Million In Debt Financing To Offer Payday Loans Tue, 23 Nov 2021 10:53:44 +0000

The True Balance app was initially launched to help users manage phone calls and data usage and eventually began offering bill payment and payday loans through True Credit.

The company claims to have offered more than 700 Cr INR in loans to 7 million Indians with loan notes ranging from 1000 INR to 50,000 INR.

The Reserve Bank of India (RBI) task force reported a large number of illegal digital loan applications (DLAs) in the country and made recommendations to rule them.

True Credits, a non-bank finance company (NBFC), operated by True Balance, raised $ 30 million in debt financing from investors in India and Korea, raising a total of $ 55 million over the course of the fiscal year 2021. Northern Arc, Arthmate, Shine Star, E clear and Hinduja, as well as other Korean investors were the participants in the round.

True Balance India, a wholly-owned subsidiary of Balancehero Co. Ltd., Korea, is an RBI authorized lending platform. Founded in 2014 by Cheolwon ‘Charlie’ Lee, the True Balance app was launched in India in 2016.

After its inception, the platform began offering a range of financial products to its clients, including the ability to pay utility bills and get instant payday loans. According to the company, it has so far disbursed loans worth over INR 700 Cr to 7 million Indians with banknotes ranging from INR 1,000 to INR 50,000. Loans are issued through True Credits, an RBI licensed NBFC.

The True Balance app helps users manage phone calls and data usage. It uses an Alternative Credit Scoring System (ACS) and machine learning-based underwriting models to provide loans to borrowers with low credit. Even though the company is not yet profitable, it aims to break even by the end of this fiscal year.

Digital Loan Applications (DLA) in India

Last week, the Reserve Bank of India’s task force on digital lending through online platforms and mobile apps said 600 of the 1,100 lending apps on app stores are operating illegally. A quick glance at an app store platform like the Apple App Store or the Google Play Store will reveal many predatory loan apps which are available for Indian users. Many users have filed complaints against this app which we found on the Google Play Store, but it is not certain whether it is working illegally.

User complaints include the platform charging exorbitant interest rates, failing to register settlements even after their completion, and threatening to access users’ contact lists and send messages to numbers that are are there.

In light of these complaints, the RBI Task Force made recommendations primarily focused on improving client protection and ensuring that the digital lending ecosystem remains safe and secure.

RBI Recommendations

In the report, the working group made recommendations to submit all DLA to a verification process by a nodal agency to be set up in consultation with the stakeholders. “A nodal agency should be set up, which will primarily check the technological credentials of DLAs of balance sheet lenders and LSPs operating in the digital lending ecosystem. It will also maintain a public registry of verified applications on its website, ”the report said.

The report also recommended that all loan services, repayments and other transactions be carried out directly to the lender’s bank account on the balance sheet and that disbursements always be made to the borrower’s bank account.

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Lenders in Metro Detroit expand with “risky” business loans Sun, 21 Nov 2021 11:29:00 +0000

At Wing Lake Capital, the focus has long been on working with troubled small businesses caught up in high interest merchant loans, and its The original Franklin Fund works with clients to “clean them up, restructure them,” said Baum, who called the company a “restructuring company that also writes a check.”

Yet as more companies “graduated” from the Franklin fund established by the company for businesses overwhelmed by high-interest debt, Baum said many expressed the need for more financing for the company. growth.

Baum said he sees two separate groups for the fledgling Capstone fund, which he said closed earlier this month on $ 50 million, a mix of debt and equity.

The first group is made up of companies that have weathered the crisis and are now in growth mode but still do not have the financial history that most banks will want.

In this regard, Baum noted that because companies are in a much more stable position, the cost of capital that Wing Lake can provide becomes significantly less expensive than in the initial stages, as companies try to get out of debt. payday loan.

Other companies, Baum said, will have an opportunity for growth, but in a space where payment could be delayed by weeks or months, such as a government contract. Banks will be reluctant to lend in such a case.

“So this capstone fund will allow us to really expand the services we provide to our clients and expand our customer base,” he said.
Baum acknowledged the relatively risky nature of these loans, but said the fund was “very selective” in selecting transactions and only choosing a small percentage. The fund is looking for good companies with a great operator who just didn’t have “the right capital structure,” he said.

“Having purchasing power cuts your expenses… If you have the money up front to prepay, the cost of your goods will obviously go down,” Baum said. “We make a plan for the business by saying that if you’re well capitalized, this is what you can really afford when it comes to debt service. And at this point, from our point of view, it doesn’t become a high risk business. “

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How To Get A Quick Payday Loan In No Time Wed, 10 Nov 2021 12:57:09 +0000

Have you ever experienced a situation requiring quick cash? Well, I know times like this can be so frustrating, and you can feel so down to earth with an urgent need. However, quick payday loans in no time can be of great help to you in such times.

But you might be wondering where and how to get a quick payday loan. Well that is why I am here because I am going to show you how to get a quick payday loan in no time.

But first, I need you to understand payday loans.

What Are Payday Loans?

What comes to your mind when you hear the term payday loan? It can be a loan with a very high interest rate, which can lead to a cycle of debt.

As the name suggests, once you take out a payday loan, you’ll pay it off on your next paycheck. That is why I would say that these are very short term loans that you have to be careful about when obtaining.

Plus, most lenders will ask you to pay back the full loan amount plus interest, all in one lump sum payment. Also, if you skip the repayment after 14 days, the lender will have to double the down payment. And that makes it more difficult to manage the loan.

To qualify for quick payday loans in no time, you must

  • Be at least 18 years old and have a valid ID. Payday lenders will not take the risk of giving their money to a minor.
  • You must have a stable income. Of course, the lender will have to prove that you can afford to repay the loan over the agreed period.
  • Provide a valid email address and a real residential address. If you are applying for a personal loan through an online platform, you must provide an active email address. The lender will also ask you to provide proof of your area of ​​residence.
  • Your country should accept payday lenders. However, some countries have passed bills restricting payday lenders. So, to get a quick payday loan in no time, make sure that the rules in your country accept payday loans.

Now, you may need to figure out where to get a quick payday loan in no time.

Where to get quick payday loans in no time

Viva Payday Loan is a platform where you can get fast payday loans in no time, starting at $ 100. The APRs on Viva payday loans range from 5.99% to 35.99%.

It is not the direct lender, but you do come across lenders on the site. What you need to do is fill out an online form on the platform. From there they will put you in touch with a suitable lender who can give you a secured approval loans for bad credit applications centrelink.

Once they get a lender, you will get a decision within two minutes. So there is no need to waste a lot of time waiting for feedback. And the good thing is that the answer is likely to be good since there is a network of several lenders.

Money Mutual is another loan platform where you will get fast payday loan in no time. You will get a decision within an hour. There are many lenders out there, so it is also possible to get a loan if you have a bad credit history.

If the lender approves your loan application, you will get your funds within 24 hours. On the platform, you can get a loan from $ 200 to $ 5,000. Also, the lender will not limit how you should use the money you get.

Cash USA is another platform where you can get a fast payday loan in no time. Once the form is completed, the platform puts you in touch with a potential lender who will give you the conditions of the loan.

You can get loans up to $ 10,000. Once a lender approves your loan, they will send the money to your account within one business day. The APRs on the site range from 5.99% to 35.99%, and you can pay off your loan from 3 months to 72 months.


Getting a quick payday loan in no time is no longer a complicated process. What you need is to meet the demands of the lenders.

However, it would be better if you focused more on living a debt free life. Start by saving little money for emergency needs, and you’ll find that you don’t need to borrow anymore.

Also, keep in mind that payday loans have very high interest rates and the chances of going through a cycle of debt are high.

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Illinois settles deal with Money Mutual and other payday lenders Mon, 08 Nov 2021 17:37:44 +0000 A settlement has been reached with online payday lenders Money Mutual, Partner Weekly and Selling Source, according to a press release from the Illinois attorney general’s office.

The Illinois Department of Financial and Professional Regulation was also involved in the case.

The lawsuit claimed that Money Mutual lured borrowers to its website through famous spokesperson Montel Williams.

The companies reportedly generated leads with personal financial information from tens of thousands of Illinois consumers, according to the lawsuit, all of whom were looking for loans. This personal information was then sold to payday lenders who in turn used it to offer loans to potential borrowers, according to the lawsuit.

“The department is proud to protect Illinois consumers from targeting unlicensed lenders and their hard-earned income,” IDFPR Acting Secretary Mario Treto, Jr. said in a statement. “We take this responsibility seriously and will continue to fulfill our mission as opportunities arise in the future.”

By settling the case, Illinois Attorney General Kwame Raoul resolves allegations that companies violated Illinois loan laws by generating unlicensed payday lending leads and organizing unauthorized payday loans. High cost payday loans for out of state payday lenders.

The settlement filed with the Cook County Circuit Court requires companies to immediately stop offering loans to borrowers in Illinois without being licensed.

“Payday lenders disproportionately target low-income communities and communities of color, and they make it extremely difficult, if not impossible, for people to escape the cycle of poverty,” Raoul said in a press release. . “I am committed to protecting Illinois residents from payday lenders who operate illegally and trap people in expensive loans with unaffordable interest rates.”

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Ill. Reaches Settlement With Payday Loan Companies Fri, 05 Nov 2021 16:16:00 +0000

CHICAGO, Ill. (KFVS) – Illinois Attorney General Kwame Raoul announced that the state has reached an agreement with three online payday loan companies.

The settlement with MoneyMutual LLC, PartnerWeekly LLC and Selling Source LLC resolves allegations by the Attorney General’s Office and the Illinois Department of Financial and Professional Regulation (IDFPR) that the companies violated state laws on ready.

The settlement filed with the Cook County Circuit Court requires companies to immediately stop offering loans to borrowers in Illinois without being licensed.

All three companies have been accused of generating unlicensed payday loan leads and arranging high-cost payday loans for out-of-state payday lenders, some also unlicensed.

“Payday lenders disproportionately target low-income communities and communities of color, and they make it extremely difficult, if not impossible, for people to escape the cycle of poverty,” said Raoul. “I am committed to protecting Illinois residents from payday lenders who operate illegally and trap people in expensive loans with unaffordable interest rates.”

The regulations prohibit the three companies from pursuing the following practices:

  • Arrange or offer small loans, online or otherwise, without being approved by the IDFPR.
  • Advertise or offer small consumer loan deals or lead generation services in the state of Illinois, unless authorized by the IDFPR.
  • To provide services related to arranging or offering small dollar loans to consumers in Illinois without being licensed by the IDFPR.

The attorney general’s office sued the companies in 2014 after the companies refused to comply with a cease and desist order issued by the IDFPR requiring them to obtain a license.

According to the lawsuit, MoneyMutual attracted borrowers in part by using ads featuring former TV host and celebrity spokesperson Montel Williams.

The companies have reportedly been successful in collecting personal financial information from tens of thousands of Illinois consumers who applied for loans on MoneyMutual’s website. The companies have been accused of selling the personal information to payday lenders who used it to offer loans to potential borrowers.

Senior Deputy Attorney General Tom James handled Raoul’s Consumer Fraud Bureau trial.

Copyright 2021 KFVS. All rights reserved.

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