Federal agency seeks to confine payday loans

Texas-Based MotherFund Expands Staff to Accommodate Growth in Merchant Cash Advance Offerings

My Thoughts About This Article:

Yes paydayloans could possibly be "negative" in reality this is the choice that is only for most of US have. Consequently can you have them pay an insane interest or instead the debtor move for your week without food or heat? From the legal perspective they're having no issue although for me it's really a tough phone. Lawmakers are seeking to crackdown on lenders hard.

ROCKWALL, Texas--(BUSINESS WIRE)--MotherFund, a leading provider of working capital and creative financial solutions for businesses nationwide, has expanded its call center staff to serve the increasing demand for non-traditional working-capital programs, like its popular Merchant Cash Advance.

Jason Bishop, MotherFund's Chairman and CEO, said, "A year ago this month, Business Week was predicting growth in the use of merchant cash advances, because of the continuing tight credit market, and they were right. We've seen a dramatic increase in requests from larger firms needing working capital, which means that the credit crunch is continuing. Typically, smaller businesses are the first to face the problem of being turned away by banks, and having no available credit, but this issue has reached into medium- and large-sized companies now, as well."

For the past several years, financial analysts, banking experts and others who watch the banking and credit industry have suggested that business loans and lines of credit for many businesses will continue to be difficult to get. Those same experts seem to agree that this is not going to change anytime soon.

According to Jason Bishop, "Many organizations have limited options, or sometimes really, no options to continue having access to working capital, so they turn to us for help. We have added more staff to meet the growing demand, and we have the financial resources to fund a wide range of merchant cash advance requests, from large and small businesses."

Several of MotherFund's products, like the Merchant Cash Advance, are based on accounts receivable financing or factoring. This form of financing puts a company's financial assets to work immediately. MotherFund also offers trade receivable, credit card processing, and custom financial services.

About MotherFund

MotherFund is a Texas-based company that provides alternative financial products and services for small businesses. The Company is a leading provider of creative working-capital solutions that allow businesses access to a consistently available source of money, for a variety of needs. These include seasonal merchandise, payroll, expansion, inventory, new equipment, and other requirements that keep the business growing.

More information is available at www.motherfund.com.

http://www.businesswire.com/news/home/20110125005396/en/Texas-Based-MotherFund-Expands-Staff-Accommodate-Growth-Merchant

Closing Thoughts:

As you may begin to see the news source above says regulators are prepared to crack the whip on cash advance lenders. I am wondering what you're ideas are on this?

How Gov't Aims to Protect Low-Income Users of 'Payday' Loans

My Thoughts About This Article:

Yes paydayloans may be "terrible" for most people have in truth this is actually the only alternative. So would you fairly the borrower go without heat or food for your week or have them pay an insane rate of interest? From a legislative viewpoint they are having no problem although for me it's a difficult call. Lawmakers are looking to crackdown on lenders.

Each month, more than 200,000 needy U.S. households take out what's advertised as a brief loan.

Many have run out of money between paychecks. So they obtain a "payday" loan to tide them over. Problem is, such loans can often bury them in fees and debts. Their bank accounts can be closed, their cars repossessed.

The Consumer Financial Protection Bureau proposed rules Thursday to protect Americans from stumbling into what it calls a "debt trap." At the heart of the plan is a requirement that payday lenders verify borrowers' incomes before approving a loan.

The government is seeking to set standards for a multibillion-dollar industry that has historically been regulated only at the state level.

"The idea is pretty common sense: If you lend out money, you have to first make sure that the borrower can afford to pay it back," President Barack Obama said in a speech in Birmingham, Alabama. "But if you're making that profit by trapping hard-working Americans into a vicious cycle of debt, you've got to find a new business model."

The payday industry warns that if the rules are enacted, many impoverished Americans would lose access to any credit. The industry says the CFPB should further study the needs of borrowers before setting additional rules.

"The bureau is looking at things through the lens of one-size-fits-all," argued Dennis Shaul, chief executive of the Community Financial Services Association of America, a trade group for companies that offer small-dollar short-term loans or payday advances.

But that lens also reveals some troubling pictures.

Wynette Pleas of Oakland, California, says she endured a nightmare after taking out a payday loan in late 2012. A 44-year-old mother of three, including a blind son, Pleas borrowed $255 to buy groceries and pay the electricity bill.

But as a part-time nursing assistant, she worked only limited hours. Pleas told her lender she'd be unable to meet the loan's two-week deadline. The lender then tried to withdraw the repayment straight from her bank account even though Pleas lacked the funds. The result: A $35 overdraft fee and a bounced check.

After the incident was repeated five more times, Pleas said the bank closed her account.

Collection agencies began phoning Pleas and her family. About six months ago, she learned that the $255 loan had ballooned to a debt of $8,400. At that point, she faced the possibility of jail.

"It's not even worth it," said Pleas, who is trying to rebuild her finances and her life.

Roughly 2.5 million households received a payday loan in 2013, according to an analysis of Census data by the Urban Institute, a Washington-based think tank. The number of households with such loans has surged 19 percent since 2011, even as the U.S. economy has healed from the Great Recession and hiring has steadily improved.

"These are predatory loan products," said Greg Mills, a senior fellow at the Urban Institute. "They rely on the inability of people to pay them off to generate fees and profits for the providers."

The rules would apply not only to payday loans but also to vehicle title loans -- in which a car is used as collateral -- and other forms of high-cost lending. Before extending a loan due within 45 days, lenders would have to ensure that borrowers could repay the entire debt on schedule. Incomes, borrowing history and other financial obligations would need to be checked to show that borrowers were unlikely to default or roll over the loan.

http://abcnews.go.com/Business/wireStory/payday-lenders-face-regulations-29914939

Final Ideas:

As you can see the news source above says regulators are prepared to crack the whip on cash advance lenders. I am wondering what you're ideas are on this?

primary Payday Loans may Help help Your Efforts To Improve Credit

This can be a where rather than genuine cash purchase mortgage lending's entire process is completed purchases that are online. Lenders makes the whole process easier and could possibly get informations about their background and potential customers very fast which makes feasible for them to produce a speedy determination. In this manner you can save large amount of costs and time. There's no need to send any papers. Another benefit is that the process that is complete is treated by primary cash advance lender, there's no an intermediary thus once the clients references are approved the mortgage might be utilized in buyer's bill instantly by online purchase. This save money and very much time.

Generally speaking, you will find more individuals willing to put their fiscal things into difficulty as a way to "keep up with the Joneses." Fewer households are putting money away towards longterm targets. Recession times have created similar benefits. Folks often turn to handle themselves, to get far from all of it while moments get robust. There is a secondary an excellent approach to avoid of creating ends meet the difficult career. It is not bad to know that folks are currently protecting for these trips instead of using a direct lenders fast payday loans bank. These short-term loans, when used for the purpose that is incorrect, can create added difficulties for an budget.

Today, there is a paydayloan also called by way of a few other names. When you're searching for payday loans online (the net increases in cash advance providers), it's also advisable to be seeking advance loan loans or post dated check loans. These loans may be secured without difficulty and quickly. They spend our charges and therefore are themselves satisfied when our pay comes in. This Can Be A smart way of creating utilization of the pay that one happens to be earning. Here is a mortgage that shan't consume your revenue over the long haul. This loan includes a very short duration. It has financing period of between seven and fourteen days.

Paydayloans are loans meaning you need not put-up equity to obtain the money that you need. As long as you are a resident of the USA of America, ofage and also have a constant work then expect you'll benefit from immediate approval payday loans.

A payday loans online variation is in borrowing from thebusiness than from a friend. Both offer fast possibilities to speedy cash and can also bring outcomes that are expensive.

It's also possible to consider seeking an advance out of your workplace to become deducted in your nest income. A very important thing regarding the employer progress is that you receive the resources interest-free. However, not all employer provide this kind of service for their workers. Besides this, many individuals will not wish to show their financial needs to their manager and will choose to borrow elsewhere for example having a payday loans online.

Why pass up a way because payday is actually a week absent, to get yourself a deal? Because you don't possess the cash why pay a charge for a late mortgage cost? As long as you're currently operating, payday loans will help you obtain the bucks that you might want, whenever you need it. After the money is transferred into your bill, the money can be used by you however, you need.

until your next payday, paycheck advance, payday loans online

immediate Payday Loan Lenders: a Straightforward option To Prevent Trouble

Among the economic capabilities that are greatest to possess is to learn how to conserve for your extras. Put apart cash until you have enough to purchase them straight-out. If you would like to take a vacation, save for that too. Earmark the expense for routes, accommodations, rental cars, food and bonuses. Scale back on some of your accessories that are regular and fill your savings. To take a vacation is a thing that is wonderful. To come back from holiday without any lavish payments waiting to become paid is better yet. It is like coming home relaxed to an inviting property and washing the house before you abandon. Keep the area in disarray and find yourself working to have the spot arranged. Not only is actually a vacation undoubtedly being paid a good ending off to your trip, but it opens your budget up to begin planning another one.

When getting a loan out through a regional payday bank, it is possible to expect you'll delay in-line all day without guarantee that you will receive your loan. Researchingpayday loan payday loans online quotes from uniquelocallenders will needlong, cash and attempt. Worse, you are likely to run when visiting regional pay day loan lenders in person, into people you could realize.

Payday loans in Georgia are money loans which are designed by lenders specifically for the folks of this state. That is really suitable for the needs of the folks.

Since direct lender payday loans creditors aren't long-term balances, you can now see why they're never documented on credit file. Before it also features a possiblity to make a mark to the statement the loan ought to be repaid.

Check out your community or locationis free viewing. For big game functions, especially the tournament, it is not surprising to find location governments hosting viewing for the residents. Get this possiblity to observe the game for free. Observe along with your friends and proceed the occasion in the home. You will save on chips and alcohol than when drinking at cafes or cafes, by doing this.

Disaster payday loans are found all-over net and you'll find so many creditors which will help you receive speedy cash to fulfill your month-end requirements. All of them are same but gives loan amount with unique rate of interest. But they all promise to transfer mortgage amount specifically within your bank account in subsequent 24-hours of distribution of the request. Application form for this plan can easily be availed on lender's website.

Closing credit cards or retaining high bills will even reduce your report. A credit report really wants to view you handle the debt. Do your best to maintain less than 30% of the balance and move the cards to maintain them lively. You've to persuade collectors that are prospective which you have the money abilities to become a business decision that is great.

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How to Avoid the Payday Loan Debt Cycle | NextAdvisor.com

My Thoughts About This Article:

Yes payday loans could be "negative" in fact this is actually the choice that is only for most people have. Thus would you keep these things spend an outrageous interest-rate or somewhat the consumer go without temperature for the week? For me it's really a phone that is tough but from the legislative perception they're having no issue. Lawmakers are trying to crack down on payday lenders hard.

By Jocelyn Baird, NextAdvisor.com

Emergencies happen whether we plan for them or not -- that's why they're called emergencies. When your car breaks down or an illness lands you in the doctor's office, your financial situation can go from precarious to dire in an instant. This is especially true for low-income households, which often live paycheck-to-paycheck, but the unexpected can sneak up on anyone. What do you do when disaster strikes and you can't afford to pay the difference?

Many find themselves lured by payday loans

Payday loans are often advertised as quick fixes for dire emergencies. Those living in low-income areas and military bases are the industry's biggest target customer base. However, these loans are not only used for one-time situations. The Pew Charity Trust "Payday Lending in America" study found that more than 60 percent of payday loans are used to cover ordinary living expenses, such as groceries or utilities.

The premise is simple: borrow the amount you need plus a fee per $100 borrowed now, pay it back when your next paycheck arrives. Unfortunately, what often ends up happening is that the borrower can't pay back the amount borrowed within 14 days. The options are to default on the loan and run the risk of getting sent to collections and damaging your credit, or renew the loan (also known as "rolling over"). When the loan is renewed or rolled over, an additional fee is added on top of what you already owed. Thus begins the financially destructive payday loan debt cycle. What seems like a quick fix is actually anything but that.

Nearly 80 percent of payday loans roll over

The Consumer Financial Protection Bureau released the results of a study in March 2014 that shed some light on payday lending. The findings are sobering. Four out of five payday loans are rolled over or renewed in 14 days -- that's a staggering 80 percent rollover rate. In addition, only 15 percent of borrowers pay it off on time without taking out another loan during that 14-day period. This series of loans, which can be called a cycle of debt, is known in the industry as a loan sequence. The CFPB also found that most of these loan sequences end with a payment that is just as high, or sometimes higher, than the original loan payment.

How can I avoid this debt cycle?

Considering a payday loan but concerned about these statistics? We can offer some tips for keeping yourself out of this destructive debt cycle.

1. Explore your other options first

"Don't take out a payday loan" may seem like an obvious suggestion, but it is the best way you can avoid this problem. If you're strapped because of an emergency or even a miscalculation in your monthly budget, try to see if you can find a way to stretch your finances until payday. Perhaps you can borrow some money from a friend or a family member or cut out some unnecessary expenses. Afraid you can't make a bill payment? Many companies will work with you and extend your payment due date or let you make a series of smaller payments.

Another option is to adjust your tax withholdings. Do you usually receive a large refund at tax time? If so, you should take a look at how much is being withheld from your check every pay period. Making a change to this could mean more income each pay period, which will help your current financial situation far more than a large sum on a faraway date.

2. Consider another type of loan

Payday loans are attractive because they are smaller and easy to get no matter what kind of credit you have. However, the high price paid by the fees usually negates the convenience, especially when you consider that the average borrower requires five months to pay off a single-repayment loan. If you really find yourself needing money, it may be more advantageous to take out a personal loan. These loans are made through reputable financial institutions and typically come with fixed rates. This means that the interest rate you start with remains the same throughout the duration of the loan -- meaning the first payment will be the same as the last. It is not as easy to get a personal loan if you have poor credit, but some personal loan services do offer loans to those whose credit isn't that great. You might have a longer repayment period, but a fixed interest rate means you won't end up paying more than you bargained for in the end.

3. Borrow from a reputable service

So you've exhausted your resources and are still coming up dry. If you have to take a loan, be sure to make sure the source has a good reputation. This can be difficult to figure out since payday loans are predatory by nature, but there is a difference between a regular payday loan service and a payday loan scam. When it comes to recommending lenders, one of the best options is LendUp, which is designed to help borrowers learn responsible lending habits and not get caught in a never-ending debt cycle.

4. Know your rights

Laws regarding payday lending differ state-to-state. A little online research will show you what the laws are in your state. Read this information carefully before you even approach a lender. For example, of the 36 states in the country that allow payday loan services to operate, 27 allow single-repayment loans with APRs of 391 percent or higher, while the remaining nine states place more strict requirements on lenders. It is good to know what the laws are in your state so you can ensure you are not being taken advantage of illegally. Having this knowledge on your side will make interactions with lenders easier.

It is also important to read any paperwork you sign thoroughly beforehand -- this can help prevent any hidden fees from cropping up and surprising you down the road when you are trying to get out of debt.

5. Beware of overdrafting your checking account

One of the biggest downfalls for payday loan borrowers is the risk of overdrafting your bank account. Keep track of any checks you write to a payday lender and know what date the check is going to be cashed, or at least the date you wrote on the check. Should a check go through without enough money in your account to cover it, not only do you run the risk of a bounced check fee, but you also will have to pay an overdraft fee to your bank. That's a double whammy and the opposite of what you want if you're trying to get back on track financially.

There's no such thing as a quick fix

Many states are now cracking down on payday lenders and working to push through laws that will help make these loans safer for borrowers. However, whether or not you live in a state with strict regulations, the high fees and interest rates of these loans make it easy to fall into a never-ending debt cycle. It is important to remember that there is no such thing as a quick fix when it comes to financial trouble. If you think a payday loan is your best option, read these payday loan reviews to learn about which lenders are available in your state and see how they compare to one another.

Close

Fraudsters feigned interest in lonely online romance seekers to rob victims of about $50 million last year.

Phony debt collection agencies have pressured victims into giving up millions of dollars. The Federal Trade Commission recently closed down two California-based companies with call centers in India after they defrauded Americans out of $5 million over the past two years.

Craigslist and eBay are a playground for scammers. Consumers have sent payments to places like Nigeria for items advertised online only to discover they have been scammed. Last year, Romanians pretending to be U.S. citizens put fake ads for pricey items on eBay and Craigslist, defrauding Americans out of more than $100 million.

Canadian police arrested a man who tried to take a $70,000 processing fee from an elderly Californian woman who believed she was going to win a $7.5 million lottery prize in April. More recently, eight Jamaican swindlers accused of duping Americans in lottery scams were also arrested.

Fake charity organizations come out of the woodwork to exploit the generosity of others, especially during times of disaster. Most recently, an organization that claims to help disabled veterans called Disabled Veterans National Foundation (DVNF) took millions of dollars from donors without spending the money on veterans.

Scammers targeting struggling homeowners have offered false services to help with mortgage settlements. Mortgage foreclosure scams have shot up 60 percent in 2012 as new federal programs for mortgages have provided avenues for fraudsters to exploit.

Scam complaints related to travelling surged right before spring break last year. Crooks defrauded grandparents out of money when their grandchildren were travelling abroad. The scammers, who find out about the travel plans from places like social media sites, pretend to be the grandchild asking for wire transfers on the phone. The scams have involved scammers pretending in an email to be a victim's travelling relative who has recently been mugged or has lost their passport.

Although there isn't much data on how often it occurs, food scams can pose a tremendous health risk. The chances of dilution and counterfeiting increase when food is imported from other countries, and some foods like fish and olive oil are particularly prone to adulteration.

Scammers have sold drugs to online consumers and then posed as government agents asking the buyers to pay money to avoid jail time. A Texas woman killed herself after being caught up in one of these drug schemes.

Credit card breaches allow fraudsters to make charges on other peoples' cards after getting a hold of numbers. Global Payments Inc., a third party payment processing service for MasterCard and Visa, made headlines in April for reporting that over a million card numbers had been compromised from their system, according to CNET.

http://www.huffingtonpost.com/nextadvisorcom/how-to-avoid-the-payday-l_b_5882788.html

Final Thoughts:

As you are able to see the news source above says regulators are able to crack the whip on payday loan lenders. I'm wondering what you're ideas are on this?

Ecclestone offers cash advance for smaller teams

My Thoughts About This Article:

Yes paydayloans could be "undesirable" for most people have, but in truth here is the only choice. Consequently would you have them pay an insane interest or fairly the borrower get without food or temperature for the week? For me personally it is a challenging call but from the legislative perspective they're having no problem. Lawmakers are seeking to crackdown on payday lenders hard.

Formula One commercial supremo Bernie Ecclestone arrives at the Yas Marina circuit before the start of the Abu Dhabi Grand Prix November 20, 2014.

Reuters/Caren Firouz

LONDON (Reuters) - Formula One supremo Bernie Ecclestone has offered advance revenue payments to Sauber, Force India and Lotus to help with cash-flow problems ahead of the new season starting in Australia next week.

"Bernie understands we've had these challenges over the winter because the (team) suppliers got so badly hurt by the Marussia and Caterham issues," Force India deputy principal Bob Fernley told Reuters on Monday.

"Whereas we've always been able to work with them and smooth it out over the period of the start of the winter, they simply can't. Whereas we used to get 30 days credit, now we need 30 days in advance.

"He (Ecclestone) suggested that we take an advance and smooth it out that way. That's going to help enormously."

Marussia and Caterham went into administration last October, with unsecured creditors losing significant amounts of money owing and now demanding payment up front from other customers such as Force India.

Silverstone-based Force India, who use Mercedes engines and have Mexican Sergio Perez with Germany's Nico Hulkenberg in their driver line-up, contract out much of their chassis work to keep costs down.

While Caterham's assets are now due to be liquidated at a public auction starting this month, Marussia has fought back from the abyss and entered the 2015 championship as the Manor Marussia F1 team.

Force India have also suffered delays to the build of their new car, which made its track debut only last Friday in Barcelona.

The agreement with Ecclestone came after a meeting between the so-called smaller teams, who spent much of last year calling for a greater share of the revenues and a more level playing field, and the 84-year-old Briton last Thursday.

The Times newspaper said each team had been promised a $10 million advance by the end of the week, when the cars and freight are due to be sent to Australia. The money would have been due to them in due course anyway.

"I think all three teams are in a position to carry on, we've just had this one extraordinary period where we lost two teams," said Fernley.

The season starts in Melbourne on March 15.

(Reporting by Alan Baldwin, editing by Justin Palmer)

http://www.reuters.com/article/2015/03/02/us-motor-racing-money-idUSKBN0LY1XZ20150302

Closing Thoughts:

As you may start to see the news source above says regulators are ready to crack the whip on payday advance lenders. I'm wondering what you are thoughts are on this?

What's happening to your money? Presidents, payday lenders and taxes: today's opinion hotlist

My Thoughts About This Article:

Yes payday loans could be "bad" for many people have, however in fact here is the only option. Consequently would you keep these things spend an insane interest or fairly the borrower get for your week without food or warmth? For me it's a phone that is difficult but from the legislative perspective they're having not a problem. Lawmakers are looking to crack down on payday lenders hard.

The President of the United States wrote a guest column for AL.com today, in case you hadn't heard. Y'all play nice in the comments - his staffers will be reading them.

President Obama came to town to talk about the economy and cracking down on payday loans. He also discussed Republican efforts to cut taxes for the top tenth of the top one percent of Americans - or, to put this in a way understood only by 90s kids... that means they'd cut taxes for Scrooge McDuck, Flintheart Glomgold and John D. Rockerduck, but not for everyday fowl like Launchpad McQuack.

Not everyone was happy with his speech though. Representative Robert Aderholt wishes he'd talked about EPA overreach and Obamacare instead. Terry Latham, chairwoman of the Alabama Republican Party, thinks that the President's policies have stifled job creation through over regulation.

In their minds, President Obama should've been talking about anything but the payday lending industry... which makes this story from Kyle Whitmire all the more interesting. Twenty-two states have already regulated the payday lending industry, but in Alabama, the industry has protected itself from state-level reforms by dumping loads of cash into the campaign accounts of Alabama lawmakers - including $116,000 to Alabama Senate Banking Committee members.

However, the economy is showing some signs of recovery. Leada Gore points out, however, that some states are recovering faster than others. Alabama is one of the states where tax revenue continues to lag.

Chuck Dean and his friend Governor Bentley focus on that salient point in a piece about the Second Term-inator's plans to raise money to hype his tax plan. To sum up: Bentley is currently soliciting donations from companies to build up a non-profit that will help sell a plan about raising taxes. Seems legit.

Baldwin County is also considering a tax increase - to build new schools. The Editorial Board supports that plan and have built out a nifty calculator to see how the proposed legislation will affect you.

Speaking of money, the people of Alabama have spoken and they want Andrew Jackson to remain on the $20 bill. We love our dead presidents and you can take that to the bank.

Oh, and if that bank happens to be Bryant Bank, John Archibald makes a very compelling case that they might be part of a secret cabal controlling the entire University of Alabama Board of Trustees.

Roll tide.

As always, you can catch up with all the AL.com opinion here.

http://www.al.com/opinion/index.ssf/2015/03/whats_happening_to_your_money.html

Final Ideas:

As you can begin to see the news source above says regulators are prepared to crack the whip on payday advance lenders. I am wondering what you're thoughts are on this?