Book store – Bit Books http://bitbooks.com/ Fri, 24 Jun 2022 08:59:39 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bitbooks.com/wp-content/uploads/2021/10/profile-120x120.png Book store – Bit Books http://bitbooks.com/ 32 32 How Personal Loan System Has Evolved Over the Years in Cash Advance Loans https://bitbooks.com/how-personal-loan-system-has-evolved-over-the-years-in-cash-advance-loans/ Thu, 24 Feb 2022 17:24:41 +0000 https://bitbooks.com/?p=1205 The traditional bank to modern lending platforms The credit system that is in India has progressed a lot however, their fundamental methods of operation haven’t changed. Cash advance loans are an evolution of the personal loan system. They still offer the loans that people need it, but they’ve changed the finer points of their business model […]]]>

The traditional bank to modern lending platforms The credit system that is in India has progressed a lot however, their fundamental methods of operation haven’t changed. Cash advance loans are an evolution of the personal loan system.

They still offer the loans that people need it, but they’ve changed the finer points of their business model in order in order to incorporate new technologies that make loans more accessible to all.

The past few years have brought an amazing array of technological advances in the Indian lending market. More recently technological advancements in the field of finance have provided a brand new method for individuals to obtain personal loans. 

The new lending landscape has opened up a whole new world of possibilities for those who couldn’t get access to financing just a few years prior to.

Let’s look at how fintech companies played a significant part in the development in personal loan.

Personal loans have been a very popular tool for financial planning due to their distinctive characteristic. They are not unsecured and flexible and can be utilized to fulfill any need. Fintech companies has refined these features for the benefit of both the lender and the borrower, and has made this financial service more sought-after than ever before.

What is the Evolution of Personal Loans

There are many ways in Fintech companies have improved the lending and borrowing process more efficient. Let’s take a look at some concrete illustrations of ways in which fintech companies have altered the way that people receive personal loans.

  1.  The financial market is now more available  
  2.  Online loan application that is end-to-end  
  3.  It connects your bank account.  
  4.  There’s no harm in your credit report  
  5.  Reduction of risk of lending
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OakParkFinancial loans available for all credit scores https://bitbooks.com/oakparkfinancial-loans-available-for-all-credit-scores/ Wed, 09 Feb 2022 20:00:53 +0000 https://bitbooks.com/oakparkfinancial-loans-available-for-all-credit-scores/ Oak Park Financial offers payday loan services to those who need money fast but have been turned down by banks or other financial institutions. Their direct line with multiple payday lenders increases their ability to secure quick loans for their clients. Oak Park Financial, a Texas-based loan service, specializes in helping customers with bad credit […]]]>

Oak Park Financial offers payday loan services to those who need money fast but have been turned down by banks or other financial institutions. Their direct line with multiple payday lenders increases their ability to secure quick loans for their clients.

Oak Park Financial, a Texas-based loan service, specializes in helping customers with bad credit scores get payday loans fast. The company has the ability to contact multiple lenders, which increases the borrower’s chances of receiving a loan. When a borrower applies for their loan, Oak Park Financial does not conduct rigorous credit checks, allowing them to working with clients who have bad credit and act faster than banks and other financial institutions. Their loans are perfect for those who need cash fast in emergency situations, but their paycheck is days away.

Borrowers can quickly begin the payday loan process using the Oak Park Financial website. At first, borrowers complete their form online including their requested amount. Then a representative will contact the borrower to get the rest of the information. Since these loans do not require a credit check, the approval process is faster than a traditional loan. Once approved, funds are immediately transferred to the borrower’s bank account the next business day. Loans are then repaid in full with interest on the designated repayment date.

To submit a loan application or for more information, visit https://oakparkfinancial.com/

About the company:

Oak Park Financial offers installment, title and payday loans. The company specializes in consolidating multiple loans using payday loan consolidation. They have a direct line with several direct payday lenders who can help secure a loan quickly for their clients. They help customers with poor credit and offer no firm credit checks.

Media Contact
Company Name: Oak Park Financial
Contact: Algernon Ronson
E-mail: Send an email
Call: 888-341-0607
Address:1301 Fannin Street, 7th Floor, Suite 1010
City: Houston
State: TX77002
Country: United States
Website: https://oakparkfinancial.com/

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21% of Black Americans say the pandemic has revealed the need to be better prepared financially https://bitbooks.com/21-of-black-americans-say-the-pandemic-has-revealed-the-need-to-be-better-prepared-financially/ Wed, 09 Feb 2022 19:05:47 +0000 https://bitbooks.com/21-of-black-americans-say-the-pandemic-has-revealed-the-need-to-be-better-prepared-financially/ Nearly a third of black households said they lost their savings during the pandemic The pandemic has put financial strain on many Americans, but not all groups have been affected equally. Studies show that the wealth gap has widened, leaving the ultra-rich in a better position and putting black and Latino households, in particular, in […]]]>

Nearly a third of black households said they lost their savings during the pandemic


The pandemic has put financial strain on many Americans, but not all groups have been affected equally. Studies show that the wealth gap has widened, leaving the ultra-rich in a better position and putting black and Latino households, in particular, in worse shape than before the public health crisis.

A new survey from online life insurance company Bestow sought to understand how the COVID-19 crisis has impacted the financial mindset of black Americans. According to respondents, the main financial lesson (21% of respondents) learned from the last two years is to prepare for the unexpected because 31% of black households said they lost their savings during the crisis.

The disproportionate financial impact

In a recent Affirm survey, the average adult said worrying about money at least six times a day. Inflation in the prices of utilities, food and housing has affected the bottom line of many consumers and heightened daily worries about financial stability.

But for black Americans, the pandemic has only exacerbated a pre-existing problem. In 2019, the Federal Reserve reported that the typical white family in the United States had eight times the wealth of the typical black family, putting white Americans in a much stronger position to weather the impending crisis.

In April 2020, 44% of black Americans told the Pew Research Center that they or someone in their household had lost their job or wages, compared to just 38% of white adults, and 73% of blacks. Americans said they didn’t have three months of emergency savings, compared to 47% of white respondents. In December 2021, Black households reported paying more for financing over the past year than other households.

According to the CDC, black Americans have also experienced 2.5 times the COVID-19 hospitalization rates of white Americans and 1.7 times the death rate.

The Changing Views of Black Americans

While 21% of Bestow survey respondents said they needed to be better prepared financially for an unexpected job or income loss, here’s how they shared how they hope to plan to be better prepared for future financial emergencies:

  • 15% want to save more money per paycheck

  • 14% want to reduce the amount of their debts

  • 13% expressed the need to purchase life insurance to protect against the unexpected loss of a loved one

  • 12% said they needed to save more money for unexpected healthcare expenses

  • 10% want to reduce fixed monthly expenses, such as car payments and phone bills

For many participants in the Bestow survey, their financial safety net may also have been exhausted during the pandemic due to the death of a loved one. When asked how they would cover a future emergency expense such as the loss of a family member, this is what respondents said:

  • 30% would go into debt with a funeral home payment plan or credit card debt

  • 30% would rely on community funding through friends, church, or a service like GoFundMe

In the event of a funeral, an unprepared consumer could be faced with difficult financial choices that will only make matters worse. Funeral loans can come with very high fees, including origination fees of up to 8% and interest rates of up to 35% or more.

When faced with such a crisis without life insurance, financial advisers can encourage alternatives, including comparison shopping for a funeral discount or applying for an alternative payday loan (ALP) with a local credit union.

Methodology: An online survey of 565 self-identified black Americans based in the United States was conducted between January 27 and January 31, 2022, with a median age of 35 and a personal annual income of $45,000. Of these respondents, 66% had financial dependents.

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Payday loans online in Citrus Noth, despite having bad credit but same-day approval https://bitbooks.com/payday-loans-online-in-citrus-noth-despite-having-bad-credit-but-same-day-approval/ Tue, 08 Feb 2022 21:34:36 +0000 https://bitbooks.com/new-mexico-house-approves-bill-targeting-predatory-lending/ Payday loans online in Citrus Noth, despite having bad credit but same-day approval Sometimes financial difficulties require us to take actions quickly, leaving no time for the next payday.Repairs to the house, a sudden invitations to birthday party or surgery that is urgent, among other.Although the reasons might differ but the issue is the same: […]]]>

Payday loans online in Citrus Noth, despite having bad credit but same-day approval

Sometimes financial difficulties require us to take actions quickly, leaving no time for the next payday.Repairs to the house, a sudden invitations to birthday party or surgery that is urgent, among other.Although the reasons might differ but the issue is the same: how can you get cash in the shortest amount of time?

An easy way to obtain a loan

Payday loans are a great way to take advantage of the many advantages of not being a financial burdens.

  • Complete a easy form
  • Rapid decision as quickly as is possible
  • If you are approved, get the money up to $5000

What exactly is Payday Loans Online?

If you require an advance on your cash online and need your cash fast, Citrus North is a good option.We provide the quickest payday loans and cash advances. We will help you obtain up to $1,000 in one day.If you’d like to be sure that you receive your money quickly it is essential to be sure to follow these steps.

If you’re struggling with cash and cannot wait until your pay day arrives, take payday loans with poor credit online to pay for the costs.Payday loans operates on a basic method: first, funds are transferred to your account, and then you settle any financial concerns.Then , payday is due, and let us deduct the correct amount of money without having to bother you with dates and figures.Each step is completed in a time-saving manner No piles of paper and no queries, not faxing or submitting a credit checks.Just filling out a simple form is enough to initiate your approval process.Our criteria are straightforward since our focus is in addressing your requirements.

When we hear the phrase “bad credit” it’s a common assumption that they are reckless with regards to financial management and managing their finances.The old saying that bad things happen to people who are good is thrown out the window regardless of what you’re applying to when it comes to loans.It could be an automobile, a house or a loan for payday through an institution, they instantly examine you after examining the credit report and in a pleasant manner they advise you to take the time out.Why does that happen?

The person who came up with payday loans for short-term or cash loans, or whatever you’d like to call them – they had a great idea.They were aware that bad things could occur to those who are good.A few examples of reasons one might need to get short-term loans include the sudden loss of a job and not having enough rent/mortgage payment, or a car loan that was slightly behind because of unexpected repairs that you had to pay for and what happens if the lost your air conditioner in your home during summer? payday loans are simple to obtain can turn from a nightmare to a great dream, and one which can be a reality.

What are the process for applying an online payday loans?

The process of applying for short-term loans is not a big deal in any way.Again, anyone who was thinking of this must be one of those who fell over prior to.The reason is that the requirements for receiving loans are simple – you just need to prove that you earn a regular income (steady and preferably from work) or a checking account, and usually have direct deposit, it’s a bonus.Certain companies may need proof of residency as well as an ability to repay back the loan back, but the whole process the other things the loan companies go through will never be required with payday loans or cash loans.Don’t be scared to try it and you’ll see that it is a great help and is simple to acquire and simple to repay.

Are you looking to obtain an online loan?Get Started Now!

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Activists call on Guess founders to step down https://bitbooks.com/activists-call-on-guess-founders-to-step-down/ Tue, 08 Feb 2022 15:08:33 +0000 https://bitbooks.com/activists-call-on-guess-founders-to-step-down/ Activist partners at Legion Partners Asset Management have called on the board of fashion brand and retailer Guess to remove co-founders and directors Paul Marciano and Maurice Marciano after “more than a decade [of] a pattern of appalling sexual assault and harassment allegations,” according to a Tuesday (February 8) Press release. Chief Executive Officers of […]]]>

Activist partners at Legion Partners Asset Management have called on the board of fashion brand and retailer Guess to remove co-founders and directors Paul Marciano and Maurice Marciano after “more than a decade [of] a pattern of appalling sexual assault and harassment allegations,” according to a Tuesday (February 8) Press release.

Chief Executive Officers of Legion Partners chris kiper and Ted White described the history of the allegations against the brothers in a letter, with the allegations of misconduct against Paul Marciano and the lack of action or response from Maurice, who “seemed to turn a blind eye” to his brother’s alleged actions , the statement said.

“Legion Partners believes it is the responsibility of the rest of the board to finally take action and immediately remove Paul Marciano from his executive role and the two brothers from the board – or at the very least remove them. ‘pledge that they will not be reappointed at the next 2022 Annual Meeting of Shareholders,’ according to the statement.

Kiper and White wrote in their letter that they “are deeply concerned about the lack of good judgment shown by the Guess board of directors in continuing to allow co-founder Paul Marciano to serve as a board member. administration and creative director of the company.. As human beings, we are appalled.

Paul Marciano has been accused of sexual misconduct by at least 11 women since 2009, the letter says, adding that the alleged incidents date back to the 1980s.

Kiper and White called Paul Marciano in the letter a “serial predator who used his positions of power and authority at Guess to harass, sexually assault and otherwise take advantage of young female role models,” including allegations from four women at the course of the last year.

Guess’s insurance company recently filed a lawsuit to absolve itself of liability to cover claims related to Paul Marciano’s alleged “series of wrongdoing” after a lawsuit filed in January 2021 by a former model who accused him of rape and accused Guess of enabling his behavior for years, the letter states.

Last February, Guess suffered a data breach that resulted in the loss of the personal information of approximately 1,300 of its customers in America, Europe and Asia. Its investigation was completed at the end of May and all parties concerned were informed at the beginning of June.

Read more: Fashion brand assumes data breach affects customer information

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NEW PYMNTS DATA: 70% OF BNPL USERS USE BANK PAYMENT OPTIONS, IF AVAILABLE

On: Seventy percent of BNPL users say they would prefer to use the installment plans offered by their banks – if only they were made available. PYMNTS’ Banking On Buy Now, Pay Later: Installment Payments and the Untapped Opportunity of FIssurveyed over 2,200 US consumers to better understand how consumers view banks as BNPL providers in a sea of ​​BNPL pure-players.

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Benefits of using FinTech apps for business https://bitbooks.com/benefits-of-using-fintech-apps-for-business/ Tue, 08 Feb 2022 07:28:53 +0000 https://bitbooks.com/benefits-of-using-fintech-apps-for-business/ Advancement in the corporate sector, especially in the financial sector due to the creation of fintech applications, has changed the business landscape. Older and more established organizations are now looking for new and more advanced ways of doing business. The fintech industry produces annual revenues of billions of dollars, and revenues are expected to double […]]]>

Advancement in the corporate sector, especially in the financial sector due to the creation of fintech applications, has changed the business landscape. Older and more established organizations are now looking for new and more advanced ways of doing business. The fintech industry produces annual revenues of billions of dollars, and revenues are expected to double by 2030.

Fintech or Financial Technology has revolutionized the financial world by making online payment possible worldwide. The buzz term fintech has become more than a trend in recent years as more and more people switch from traditional banking to digital banking. Many companies have started using fintech apps. In a few years, these apps are expected to adopt futuristic technologies such as artificial intelligence or data science, which will make them more user-friendly by providing excellent user experience.

If you are looking for a reliable server infrastructure to host business or fintech applications, contact HostKey – a Dutch internet service provider in the Netherlands and the United States. They are the best and most efficient in providing hosting solutions for financial and fintech projects.

Key Benefits of Using Fintech Apps

There are myriad advantages to using fintech apps for business today. In this article, we’ll highlight some of the key benefits and explain why your business should adopt them as soon as possible.

#1: Low cost

The most important benefit that businesses and developers get with fintech app development is cost reduction. There is more chance of errors with each piece of code generated for an application. This can lead to poor performance, program faults, and higher maintenance expenses due to frequent upgrades.

Fintech apps are designed in a way that allows developers to reuse code for various applications. This reduces the time spent and costs incurred in writing different codes and allows developers to focus on other important facets of application development such as layout, security, speed, etc.

Fintech applications not only reduce costs for companies and developers, but also for the customer. Many operations have been automated, which has proven to be more efficient in areas such as credit risk more accurately and requiring less human presence, reducing the cost of servicing clients.

#2: Financial Deepening and Inclusion

Another great benefit of using fintech apps is that it promotes inclusion and financial deepening. It transforms the consumer experience by providing excellent financial services. Financial inclusion can improve customers’ access to banking services and help them save money, and provide more convenience and a better experience. Customers can also use fintech technology to access a lending platform, which can be a viable alternative to banking services.

#3: Ingenious approach

Innovative brands and apps such as Airbnb, Uber, WeChat, Whatsapp, Facebook and many more have completely changed the way we live and work. These brands are successful because of their innovative and resourceful approach to using technology. Likewise, customers nowadays prefer e-wallet applications due to their ease of providing to customers and businesses. Fintech applications can use futuristic technologies such as AI, AR, and IoT to improve customer experience. By using these advanced applications, you can take your business to the next level.

#4: Convenient to use

Another great benefit of using fintech apps for business is the convenience they provide to their users. By using mobile connectivity, fintech has improved efficiency and facilitated transactions. This, in turn, provides customers with a better experience, access to information, and better transparency. The use of fintech applications in businesses has made it possible for the public to have access to information at their fingertips. In addition, fintech has helped provide financial products to people who do not have bank accounts, thereby serving everyone in need of financial services around the world.

#5: Faster access to loans

Online loan applications must be authorized by digital-only loan providers who provide businesses with same-day loan funding. This has only become possible thanks to fintech innovations. Fintech makes it easy to get a short-term loan or a personal loan. You can easily find a variety of lenders online and receive prompt assistance. On the other hand, traditional banks do not offer the same advantage. Traditional loans typically take months to authorize. Using fintech is more convenient due to its efficiency and faster services. This is why more and more companies are choosing Fintech applications for their business.

The end note:

Benefits of using FinTech apps for business

Fintech applications can provide organizations and customers with cost effective and efficient application solutions. Tailor-made fintech software can help you simplify difficult business activities. Startups can use an app to raise funds and offer a variety of funding choices. However, if you are looking for a trusted partner for carrying out FinTech projects, HostKey may be your best bet.

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Is San Antonio FloatMe a Safer Alternative to Payday Loans? https://bitbooks.com/is-san-antonio-floatme-a-safer-alternative-to-payday-loans/ Mon, 07 Feb 2022 22:56:22 +0000 https://bitbooks.com/is-san-antonio-floatme-a-safer-alternative-to-payday-loans/ FloatMe, a San Antonio tech startup that gives workers cash advances on their next paycheck, said it has increased $16.2 million from investors during its last fundraising. Overall, the startup has raised $49.1 million in funding since June 2019, including $25 million in debt funding, according to Crunchbase, which tracks investments in tech companies. FloatMe’s […]]]>

FloatMe, a San Antonio tech startup that gives workers cash advances on their next paycheck, said it has increased $16.2 million from investors during its last fundraising.

Overall, the startup has raised $49.1 million in funding since June 2019, including $25 million in debt funding, according to Crunchbase, which tracks investments in tech companies. FloatMe’s new investors include Iowa-based Active Capital and ManchesterStory.

“We’ve been under the radar,” FloatMe co-founder and president Joshua Sanchez said. “The funding is validation that we have grown significantly and allows us to expand.”

However, he declined to say how many customers use the app.

FloatMe, with 60 employees and an office in downtown Soledad Street, is part of a wave of online and mobile cash advance companies gaining traction during the coronavirus pandemic. They compete with payday lenders who sell high-interest loans to largely low-wage workers, a disproportionate share of whom are black and Hispanic.

FloatMe’s service is similar to financial technology, or fintech, offerings from companies such as silver lionwin and David.

Like its biggest rivals, FloatMe says it offers customers payday cash advances, not loans.

Customers pay a monthly fee of $1.99 and can request small advances – no more than $50 – which they repay when their next paychecks hit their bank accounts.

The startup Terms of use say users must be US citizens at least 18 years old and have a cell phone and email address. To create an account, customers authorize the company to access their bank account balance and transaction history.

They must also prove that they have received at least $200 in electronic payroll deposits three times before they can apply for advances.

FloatMe CEO Josh Sanchez markets his company as an alternative to payday lenders.

Jessica Phelps

Once approved, users can receive their advances through an automated transfer from the clearing house to their bank accounts in one to three business days. Or they can pay $4 for an “instant” money deposit within eight hours.

Fees for faster access to cash advances have caught the attention of industry watchdogs. Many workers who apply for cash advances are in financial straits and need money fast.

“This type of fee is meant to be voluntary, but really adds up for consumers,” said Yasmine Farahisenior policy adviser at the Center for Responsible Lending, a North Carolina-based nonprofit policy and research group.

FloatMe users can also receive offers from third-party companies for money management services or products — if they choose, according to the startup.

According to the terms of service: “In all cases, you will need to register to receive these offers from partners, and FloatMe may receive compensation from these partners for referring you to them. FloatMe is not responsible for the products and services offered by these partners.

Payday debt traps

The Federal Consumer Financial Protection Bureau describe a payday loan as “a short-term, high-cost loan, typically $500 or less, that is usually due on your next paycheck.” Loans are available in storefronts and online.

If borrowers do not repay their loans on time or at all, lenders can withdraw money from their bank accounts, sometimes resulting in overdraft fees. Payday lenders also sometimes send collection agencies after delinquent borrowers.

Payday loans have long been a big business in Texas.

The Center for Responsible Lending has to analyse the average annual percentage rates, or APR, for a $300 loan with 14-day repayment periods in each state. Data shows Texans can pay up to 664% APR — the highest in the nation — because the state has no interest rate caps to protect borrowers.

“Payday loans are marketed as a quick financial fix, but they’re actually a long-term debt trap,” Farahi said. “People will take out a loan thinking it’s a one-time loan to deal with a short-term crisis. But with all the fees and costs, they end up having to take out another loan and another loan.

Like his peers, Sanchez says FloatMe is not a payday lender.

“FloatMe is all about transparency,” he said. “We charge members $1.99 per month to access our personal finance management tools, overdraft alerts and other budget management features. Members can access the floats without having to pay the $1.99. There is no credit check. There is no interest and no hidden fees.

“We do not collect or store sensitive information (personal information),” Sanchez said. “We work with a third party to simply connect a member’s bank account. We do not sell any user data.

The company’s website says it uses Plaid, a California-based financial services company, to connect to customers’ bank accounts.

Debt trap

Sanchez said he had his own bad experience with a payday lender.

Five years ago, he was driving in San Antonio when a VIA Metropolitan Transit bus veered into his lane and rammed his vehicle.

The Incarnate World University graduate had car insurance but couldn’t wait for payment to fix his car – he needed it to get to work. At the time, he was one of the 67% of millennials without a credit card. So he dipped into his savings to pay for repairs to the vehicle, leaving him short of cash before his next paycheck.

He didn’t want to ask his mother for money, so he turned to a payday lender for a $200 loan – and quickly fell behind on his payments.

“I have to understand that paying on time is important,” he said. “The way lenders generate their income is by betting that people can’t prepay and get into a habitual cycle of having to pay interest. The sad thing is that the majority of people cannot afford a sudden recovery.

Later that year, Sanchez pitched the idea for FloatMe during a startup challenge at Geekdom, a coworking space in downtown San Antonio, and won $13,000.

FloatMe’s terms of service say it doesn’t charge late fees or penalties, and it won’t go to a collection agency to track down customers for payment.

“If a member doesn’t repay a float, we don’t seek recourse,” Sanchez added. “Our only response is not to allow the member to take another float.”

Still, consumer advocates remain wary of cash advance companies because they aren’t regulated like payday lenders.

“A lot of them try to say they’re not loans, but we think they’re loans and should be regulated by consumer protection laws and state loan laws.” , Farahi said. “Obviously in Texas these laws aren’t strict on user caps, but we’re concerned that they’re trying to get exclusions from state and federal lending laws saying that it it’s not about loans. And really, a lot of them are payday loans in some other form.

eric.killelea@express-news.net

]]> $60 loan climbs to $800 for teen ‘exploited’ by payday lender https://bitbooks.com/60-loan-climbs-to-800-for-teen-exploited-by-payday-lender/ Fri, 04 Feb 2022 00:15:23 +0000 https://bitbooks.com/60-loan-climbs-to-800-for-teen-exploited-by-payday-lender/ Rachelle* was 17 and a bit short on cash when she borrowed $60 early last year from online payday lender Cigno. Key points: $60 loan repayments soared to $800 debt for teen who borrowed money ASIC plans to use its powers of intervention to ban loan models handled by Cigno Consumer advocates say customers are […]]]>

Rachelle* was 17 and a bit short on cash when she borrowed $60 early last year from online payday lender Cigno.

Since then, her quick cash fix has turned into a current debt of $800 that she admits is struggling to repay.

“In just two clicks, it was in my bank,” said Rachelle, who uses a pseudonym to protect her identity.

“But that doesn’t tell you how much it’s going to cost you. It doesn’t tell you how much the late fees are. It doesn’t tell you anything.

“Reimbursements just keep going up and up.”

The 18-year-old, from Palm Island in North Queensland, is among hundreds of borrowers caught off guard by the controversial loan scheme which consumer advocates describe as “one of the of the most harmful individual credit on the market”.

“They only received a small amount but are now paying 10 times more.”

A message from Cigno offering relief loans during COVID-19.(Provided)

“Rapid and harmful debt spirals”

Cigno is a Gold Coast company that processes same day cash loans and whose director and CEO is former super rugby player Mark Swanepoel.

Rachelle said Cigno uses Facebook ads to target customers like her.

His story is all too common for consumer advocates, who are calling on the Australian Securities and Investments Commission (ASIC) to ban Cigno-processed lending models.

In 2020, ASIC filed a lawsuit against Cigno and its supplier BHF Solutions, alleging they violated the nation’s Consumer Credit Protection Act.

Hands hold Australian banknotes and brown wallet.
Cigno is not subject to rules capping the amount of interest that can be charged to customers.(PA: Alan Porritt)

The Federal Court dismissed ASIC’s claim in June 2021, and the full Federal Court has since reserved its decision on ASIC’s appeal.

Separately, ASIC has sought public input to help it decide whether to exercise product intervention powers that would prohibit Cigno’s short-term credit model.

In a joint submission to ASIC, the Consumer Action Law Centre, Financial Rights Legal Centre, Indigenous Consumer Assistance Network (ICAN), Victorian Aboriginal Legal Service and WEjustice said the loans are pushing people into spirals of rapid and more detrimental indebtedness.

“Virtually every consumer we saw who took out such a loan suffered significant harm as a result,” their brief states.

“The fact that an unregulated fringe lending program appears more often in the records than any other major bank or payday lender is a telling indicator of the harm these loans cause in the community.”

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The CFPB wants your opinion on “unwanted fees” https://bitbooks.com/the-cfpb-wants-your-opinion-on-unwanted-fees/ Tue, 01 Feb 2022 23:59:10 +0000 https://bitbooks.com/the-cfpb-wants-your-opinion-on-unwanted-fees/ Which do you despise the most? Late fee ? Hotel resort fees? Document preparation costs? Convenience fee? They all fall under the general category of “unwanted fees”, which is of growing concern to the Consumer Financial Protection Bureau (CPFB). The agency is seeking public comment on what it calls “fee economy.” According to the CFPB, […]]]>

Which do you despise the most? Late fee ? Hotel resort fees? Document preparation costs? Convenience fee? They all fall under the general category of “unwanted fees”, which is of growing concern to the Consumer Financial Protection Bureau (CPFB).

The agency is seeking public comment on what it calls “fee economy.” According to the CFPB, “abusive junk fees charged by banks and non-bank financial institutions have become widespread, with the potential effect of shielding substantial parts of the real price of consumer financial products and services from competition.”

Key points to remember

  • The CFPB is seeking public comment on so-called junk fees that tend to raise the price of goods and services, often without the knowledge of consumers.
  • The CFPB recommends submitting comments electronically or by email.
  • All comments will be posted online unchanged.
  • The CFPB asks for help in identifying unwanted fees to ensure markets are fair, transparent and competitive.
  • Consumers have until March 31, 2022 to post or submit their comments.

Take steps to increase fee transparency

Behind the request for public comment is the knowledge that a consumer’s ability to compare prices depends on transparency. When companies tackle fees, which are often hidden until the bill is presented, comparison shopping becomes much more difficult.

The CFPB calls this “fee economics,” a practice that can give companies the power to overcharge since consumers have no say in it once they make the decision to buy the product or service.

Additionally, the agency notes that the Consumer Financial Protection Act (CPFA) directs the CFPB to enforce consumer law to ensure that financial markets are fair, transparent and competitive, which the CFPB believes is undermined. by junk fees.

March 31, 2022 Deadline for submission

The public has until March 31, 2022 to submit comments electronically, by email, or by regular mail, although CPFB discourages the latter route due to COVID restrictions and potential delays.

Your comments should identify File No. CFPB-2022-0003 and be submitted by one of the following:

  • Electronic: http://www.regulations.gov. Follow the instructions for submitting comments.
  • E-mail: FederalRegisterComments@cfpb.gov. Include case number CFPB-2022-0003 in the subject line of the message.
  • Mail / Hand delivery / Courier: Addressed to—Comments—Fee Assessment, Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 20552.

The CFPB discourages submission of comments by hand delivery, mail or courier due to potential complications and delays related to COVID-19

special instructions

If you are considering submitting comments, the CFPB offers the following guidelines to ensure your voice is heard:

  • Submit your comments early. Don’t wait for the deadline.
  • Include both the title of the document (Request for information regarding fees charged by providers of consumer financial products or services) and the file number (CFPB-2022-0003).
  • Submit your comments electronically to avoid COVID-related delays.
  • Comments will be posted and available for viewing at https://www.regulations.gov.
  • Comments will also be available for public inspection and copying at 1700 G Street NW, Washington, DC 20552, once CPFB headquarters reopens.
  • All comments are subject to public disclosure as part of the public record and will be posted unchanged.

Do not include proprietary information or sensitive personal information, such as account numbers, social security numbers, or other people’s names, as this information will not be altered or deleted.

Examples of unwanted charges

Unwanted fees can be hidden in almost any financial transaction or account type. Some of the most common, according to the CFPB, include:

Deposit account fees

Banks and other financial institutions include a number of fees in deposit accounts. The names vary, but some of the most common are account maintenance fees, minimum balance fees, savings transfer fees, insufficient funds (NSF) fees, overdraft fees and ATM fees. .

Credit card fees

According to the CFPB, credit card fees represent approximately 20% of the total cost of a credit card. The most common late fees are regulated by law at a maximum of $30 for the first late payment and $41 for subsequent late payments. Almost all banks, says the CFPB, charge the maximum.

Remittance and payment fees

These include fees such as Payment Transfer Fee, Convenience Fee, Return Item Fee, Chargeback Fee, Check Image Fee, Online Payment Fee or by phone. Also on the list are ACH transfer fees and wire transfer fees.

Prepaid account fees

Prepaid credit and debit cards appeal to unbanked consumers, often people with limited resources. However, this does not prevent fees from being charged, including transaction fees, cash top-up fees, balance inquiry fees, inactivity fees, monthly service fees and service fees. cancellation of card.

Mortgage costs

Mortgages, the closing process in particular, contain a significant number of fees that not all buyers (or sellers) are aware of. There are filing fees, monthly inspection fees for some, title insurance, plus a host of other closing costs, including hefty appraisal fees. Some of these fees apply to the buyer, others to the seller. No one, it seems, is spared.

Other loan fees

The CFPB is also interested in learning more about loan-related fees, such as loan origination and servicing fees, including for student loans, car loans, installment loans, payday loans and others. types of loans.

Questions to ponder

As part of the comment process, the CFPB suggests that commenters consider their responses to the following questions:

  1. What has been your experience with fees associated with your bank, credit union, prepaid or credit card account, credit card, mortgage, loan, or payment transfer?
  2. What types of fees hide the true cost of the product or service by not being included in the original price?
  3. What charges exceed the cost to the business that the charge is intended to cover?
  4. Which companies or marketplaces derive significant revenue from management fees or costs that are not part of the list price?
  5. What are the obstacles, if any, to incorporating fees into initial prices?
  6. Do consumers consider return costs, both inside and outside financial services?
  7. Do consumers understand fee structures disclosed in fine print or boilerplate contracts?
  8. Do consumers make decisions based on fees, even if they are well disclosed and understood?
  9. What oversight and/or policy tools should the CFPB use to deal with escalating excessive fees or fees that divert revenue from the original price?
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Canadian fintech Koho raises $210m and eyes payday loan market https://bitbooks.com/canadian-fintech-koho-raises-210m-and-eyes-payday-loan-market/ Tue, 01 Feb 2022 08:00:00 +0000 https://bitbooks.com/canadian-fintech-koho-raises-210m-and-eyes-payday-loan-market/ The Koho mobile app allows users to accumulate savings similar to a traditional high-interest savings account, but charges no fees for transactions.Nathan Denette/The Canadian Press Online financial services provider Koho Financial Inc. has raised $210 million in venture capital as it seeks to expand its services to offer Canadians an alternative to expensive payday loans. […]]]>

The Koho mobile app allows users to accumulate savings similar to a traditional high-interest savings account, but charges no fees for transactions.Nathan Denette/The Canadian Press

Online financial services provider Koho Financial Inc. has raised $210 million in venture capital as it seeks to expand its services to offer Canadians an alternative to expensive payday loans.

Koho, which has a mobile app that provides a savings account at no cost, has grown its user base to over 500,000 since the pandemic hit in March 2020.

The mobile app allows users to accumulate savings similar to a traditional high-interest savings account, but charges no fees for transactions. Users can spend funds with a prepaid Visa card. The company derives its revenue from transaction fees that credit card companies collect from retailers.

With its latest funding, Koho is turning to loan products that will give users free early access to a portion of their upcoming paychecks several days before their payday.

Chief executive Daniel Eberhard said the customer growth “reflects growing consumer demand for alternative ways to manage their money,” as well as providing an online option for people who don’t. “do not always want to go to a physical place”.

The $210 million funding round was led by new investor Eldridge, a Connecticut-based holding company that has made investments in a number of industries including technology, insurance, management assets, mobility, sports and games, media and real estate. Eldridge’s investment portfolio includes a plethora of businesses, from personal finance mobile app True Bill to Bruce Springsteen’s music catalog and the Los Angeles Dodgers.

Koho’s latest round also includes renewed commitments from returning investors TTV Capital, Drive Capital and Portage Ventures, a wing of Power Corp.’s alternative investment arm, Sagard Holdings. Healthcare of Ontario Pension Plan, Round13 and the Business Development Bank of Canada have made additional investments.

Payday loans typically provide instant access to cash before payday, but charge high interest on the loans, which often requires additional processing fees. Mr Eberhard said he wanted to help minimize the number of people who have to go into debt when they are just days away from their next pay cycle.

“About half of Canadians live paycheck to paycheque, waiting two weeks to get paid,” Eberhard said. “We want to be able to help individuals access the money they’ve already created and not have to turn to payday loans or go into excessive debt.”

To do this, Koho partners with one of the largest payroll service providers in the country, Automatic Data Processing Inc., known as ADP. Now, with a new Instant Pay feature, users will be able to access up to 50% of their paycheck anytime, interest-free.

“Two-week pay cycles just don’t make sense – they should be daily or even hourly,” Eberhard said. “This often forces people to turn to expensive options to borrow a little extra cash.”

Koho has raised a total of $355 million in capital across six rounds of funding since 2016. Over the past year, the company launched an app that helps users improve their credit score. Mr. Eberhard plans to continue to seek credit alternatives for customers with the latest financing.

In March 2021, the company completed a $70 million financing round, which reduced Power Corp’s economic interest. in the society. Power Corp. was the major shareholder of Koho through its subsidiary Portag3 Ventures.

Koho did not provide details on the current direct stake held by Portag3 Ventures, but confirmed that it “continues to maintain a significant stake in the company.”

According to Power Corp.’s most recently published annual report, the company, through its subsidiaries, held a 48.7% stake in Koho as of December 1, 2020.

Koho will also use its latest funding to strengthen the company’s technical infrastructure, step up its marketing efforts and increase its workforce, which stands at around 250. Eberhard said he plans to hire an additional 150 people, which includes expanding its engineering team by 50 percent.

Editor’s note: An earlier version of the story incorrectly stated that the new payroll feature gave users access to $100 before their payday. The new feature allows users to access 50% of their paycheck at all times.

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