Payday Lenders begin to turn the Tide against Proposed CFPB Regulations

Payday lenders have been living with the pressure of a very real threat to their industry for some time now. The threat is the new regulations that the CFPB has cooked up for the industry. In the mainstream media and in some court hearings, the payday lenders have taken quite a beating from the CFPB so far. It looks, however, like the lenders have finally had it, and they have started to take action to push back against the CFPB and its proposed payday lending industry regulations.

Jennifer Sons is from Chino Valley Arizona and she is also a payday loan customer. She wrote a note that got delivered to D.C. via a Cincinnati group called Axcess Financial. Part of that note read, “These loans are life savers!! Do not change anything please!”

Another payday loan customer, Kathy Walsh of Shellsburg, Iowa wrote, “If I did not have the advantage of a payday loan, I wouldn’t be able to pay for things like my medicine when I run out, especially since I get paid twice a month!”

There have been so many personal notes and comments posted online that the federal government’s website, Regulations.gov, has them all listed under a section of the site called “What’s trending.” At last count, there were more than 22,500 comments and a minimum of 830 handwritten notes that were sent through via Axcess. This group runs the Check ‘n Go and Allied Cash Advance Locations. An additional 800 comments were posted by customers of Advance Financial in Nashville. Some of these notes had straight-to-the-point text, like “I have bills to pay,” and “Leave me alone!”

The correspondence was recently reviewed and it was determined that the letters were from consumers who were concerned about their access to lines of credit going away. Those types of letters and comments far outweighed the comments from critics of the payday loan industry. The critics, mostly consumer watchdog/advocate groups, believe that the lenders are leading consumers down the wrong path and they say that credit for working class people will not go away. They claim that new financial products will offer people the chance to borrow money with more affordable fees.

Providers in the payday lending industry, however, say that the rule will force legitimate lenders to close down their companies. They also say that the rule will prevent lower income consumers from having access to emergency cash and lines of credit. In this battle the lenders have found that the borrowers are their most powerful weapon.

Cullen Earnest is the VP of public policy for Advance Financial. He said, “This is just the tip of the iceberg!” The last day that the CFPB will accept public comments on the rule is October 7th. Earnest warns that there will be many more consumer letters and comments before that day arrives.

As things now stand in most states, payday lending companies can make shorter term, smaller dollar loans to just about any person who has a job. If borrowers are unable to pay back their loans on time, they can roll the loan over into a new one. Opponents of payday lending say that this process creates cycles of debt for poor people. They hope that the new rules will put an end to the creation of these cycles. It is important to know, however, that most people who take out payday loans do so with understanding of the fees and the loan terms. They also usually pay back their loans on time. Those who roll loans over often do so willingly, and fully understanding that it will take them additional time to pay the loans back. This is no different than if someone chooses to skip a credit card payment; except that the CFPB would rather target the payday lending industry with stiff regulations than it would larger providers of financial services, like big banks and credit card companies.

The Potential Dangers of Mobile Banking Technology

It is easier than ever to manage your finances these days. Now that we have access to lots of different mobile banking technologies, it is simple to pay bills, get cash or just to check your bank balance. As we all know, though, there are good and bad sides to everything. Any time we sacrifice in order to get additional convenience, we wind up losing something. In the case of mobile banking technology, we can end up losing a bit of security when we seek to find even more convenient ways to get access to our finances.

Banking fraud expert, Julie Conroy sums it up like this: “As additional people flock to the mobile channel and transactions multiply, the bad guys are paying attention and deploying more attacks against it.” With Conroy’s statement in mind, it is good to know how to protect yourself from some of the dangers of mobile banking apps and websites. Here are some of the dangers lurking out there that you need to be aware of…

The Danger of Bad Reception

Some people opt to use their phone carrier’s data network instead of wireless to access their accounts. While 3G and 4G can be very secure, the security level drops when you access your financial apps via a lower service range area. In other words, the worse the 4G reception, the higher the likelihood that your data could be compromised. To avoid this threat, try to only access your bank account information or PayPal account when you are in an area that has superior connectivity rates.

Hackers can get into Wireless Networks with Ease

Some people don’t know this, but mobile apps do not always encrypt your information the way that secure websites do. This means that when you use a mobile app to access your bank account on a public or unsecured wireless network, you could be setting yourself up for trouble. Most public wifi hotspots are not very secure, and hackers are notorious for hacking into these networks to steal financial or personal data. If you must use a mobile app to access your bank account, make sure to use your home’s secured wireless network to avoid the potential of becoming a victim of hackers.

Losing Your Phone can Lead to Even more Severe Losses

It used to be that if you lost your cell phone that you would simply be out the cost of the phone. These days, though, with people storing their entire digital lives on their smart phones, losing your phone can lead to serious problems. Studies have proven that about 40 percent of smart phone users don’t use any type of password protection on their devices. If you are one of those folks, and you happen to lose your phone, anyone who picks it up could get immediate access to your sensitive personal and financial information. To avoid this threat, make use of the password protection option on your smart phone.

Waiting to get Money
Even though you are allowed to make instant deposits via mobile banking apps, you may have to wait a bit longer than you are accustomed to in order to access those funds. Banks are always concerned about protecting themselves against fraud. With the possibilities for fraud growing exponentially with the rise of mobile banking apps, banks have to do what they can to stay protected. This means that mobile deposits are subject to longer waiting periods than traditional cash deposits at your local bank branch.

Mobile banking apps are great for giving you instant access to all of your bank accounts. Just be sure that you are aware of some of these potential risks and that you take action to keep your bank account protected.

Is Chase Slate the Best Balance Transfer Credit Card?

It is a veritable jungle out there for people who are looking for credit cards to use for low balance transfers. As you may already know when you are carrying around a high credit card balance, on a line of credit with high interest rates and other fees, it can be almost impossible to pay those hefty balances off. Transferring your high balance to a card with lower interest rates fees can be a great way to get started on your master plan to becoming free from the chains of too much consumer debt. It is important to choose the right credit card to use for your balance transfer, though.

The Chase Slate has become one of the most popular balance transfer credit cards on the market today. But just because the Slate is popular, that doesn’t necessarily mean that it is the right card for you. We decided to investigate what this card has to offer and now we are going to share our findings with you.

What’s Good about the Chase Slate?

Many credit card companies try to entice you to choose their balance transfer cards by offering you 0 percent interest for a short amount of time. The Chase Slate, however, actually offer people 0 percent interest for 15 months. To make things even better, that longer 0 percent term applies to both purchases and balance transfers. It’s a sure bet that the longer no-interest period that the Chase Slate offers is one of its chief selling points.

Chase Slate also allows consumers to transfer their balances without paying any balance transfer fees. This is a very big benefit, as many credit card companies will actually charge you about 3 percent to move your balances to their credit cards. A 3 percent fee on a $5,000 balance would cost you around $150 if you were to choose one of those cards. Slate charges you absolutely nothing, so you don’t have to tack on any addition debt just for the privilege of switching to a card with more affordable interest rates.

Any Drawbacks to the Chase Slate?

There is no such thing as a perfect credit card. As much as we like the Chase Slate, it is important to let you know that it is a balance transfer credit card that is typically only available to people who have good credit scores. Typically, a good credit score is considered to be one that is higher than 660. People who have lower credit scores may feel like they are missing the boat by not being able to qualify for this particular credit card. However, if you have only had a few minor credit problems, say you missed a payment or two, you should still be able to qualify for a Chase Slate credit card.

People who travel frequently are sure to appreciate that Slate also offers Chip and Pin technology. When a card is Chip-enabled, you can safely use it abroad without any worries. So if you plan on taking a vacation or business trip to another country in the future, you may find that the Slate is the ideal credit card to use while you are traveling.

Be sure to use your balance transfer wisely, regardless of the actual credit card that you apply for. Don’t simply rack up more debt. Use the 0 percent introductory period to pay off as much of your debt as you can. That is the whole point of using a balance transfer, and it will definitely help you to get your finances into better shape for the foreseeable future.

Is there a Bright Side to Having Bad Credit?

It doesn’t take a genius to understand how much of an impact bad credit can have on your life. There are so many downsides to bad credit, that entire libraries could be filled with all of the reports that have been written on the topic so far. You pay more money in interest payments, rentals become more challenging and you can even lose out on the opportunity to get a new job, all because your credit score is low. There’s no other way to put it, except to say that bad credit really is a drag…

There are already enough articles out there that tell of the negative impact of bad credit. It is time to change things up a bit, and see if there is anything positive about having a low credit score. Is there a bright side to having bad credit? Let’s see if we can’t find the silver lining for those of you out there dealing with bad credit…

Maintaining Your Perspective with Bad Credit

The first thing you have to keep in mind is that bad credit is not a life sentence; you are not stuck with a low credit score forever. Your score is not any indication of the type of person, but of your past financial decisions. Use this time to review some of the financial mistakes of the past, and come up with resolutions to avoid those mistakes in the future. Not every financial mistake was your fault. Chances are you have dealt with some real financial emergencies in the past. The main thing to remember is to avoid beating yourself up. Get some perspective. Leave the past in the past. And develop a smart plan to move forward, and to rebuild your credit score.

A Time to Learn about Credit

Once you are on the lower end of the credit score spectrum, it is time to start learning some lessons. A lot of people wind up in trouble because they never really learned about how credit scoring works in the first place. Now that you are dealing with bad credit, it is the ideal time to educate yourself. The more you know about the inner workings of credit, the better armed you will be to protect your credit score in the future. Keep this in mind to avoid feeling down and out about your current credit score situation.

Bad Credit can teach you to Overcome Obstacles

Think of bad credit as an obstacle that you can – and will – overcome. Many people do not realize how resourceful they really are until they are facing some type of adversity. Think of rebuilding your credit as a challenge that you are going to tackle with all of your might. Resolve to not let your current situation define you for good. Muster up your courage, get informed and use your low credit score to inspire you to do better with your finances moving forward.

In Conclusion

Chances are that if your credit score is low right now, that you will do all that you can to keep it from getting worse. The old saying of “Once bitten, twice shy” certainly applies to this type of situation. You now understand just how much of a pain bad credit can be, so you are less likely to fall into the same patterns that got you into financial trouble from here on out.

It can be hard to see the positive things in life when your credit score is bad. You ultimately decide how you are going to react to things in life, so make sure that you react the right way to your current financial situation. You can improve your credit score, so try to see the bright side and take strides toward an even brighter financial future.

Dealing With The Unexpected In Life

When you go online, you are going to read a lot of Financial Tips when it comes to saving money. While you can get a lot of good tips from the items that you read, it is important to remember that what works for one person won’t be able to work for another. Sure, if you had the money you would like to invest in real estate, or put large amounts of money into certain stocks; the problem is, when you are living from paycheck to paycheck, you don’t have the money to do this. With all of this in mind, one of the smartest things that you can do for yourself is to set your own financial goals, wherein you save the amount of money that you can on a month to month basis. This can be done by simply putting extra money away, to cutting down on the amount of times that you eat out. By making the ideas your own, you are more apt to follow them in the long-run.

It is also important to remember that you can only do so much when it comes to putting money away from month to month. There are some months where you can put $500 away, while there are others that you can only put $20 away. The key is to just keep doing it, making sure that you have enough saved up for when things do take an unexpected turn. It is always best to plan for the unexpected in life.