Tag Archives: ConsumerProtection

Are you upset over the interest rate on your credit card or car loan? Well, take solace in realizing that it could always be much worse. Imagine being on the hook for a loan with a 780 percent interest rate. Two weeks ago, the owner of a national payday lending enterprise was indicted on federal racketeering, fraud and conspiracy charges. The 75-year-old man and his multiple payday loan businesses made almost $700 million from 2008 to 2013. Hundreds of thousands of desperate borrowers were duped by businesses with enticing names, such as Instant Cash USA and Easy Cash. These payday loan companies charged borrowers $30 for every $100 borrowed, an annual interest rate of 780 percent. Keep in mind that due to the short-term nature of these loans (a matter of weeks), $30 for every $100 can cause the balance to swell many times over when borrowers are unable to…
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Debt relief scams target groups of people who are desperate for a way out of difficult financial situations. Scammers routinely target people who are facing foreclosure, massive student loan balances, credit card bills and other types of debt. The Department of Justice (DoJ) has sent out a warning about bankruptcy scams targeting homeowners who are facing foreclosure. According to the DoJ, the scam involves advertising on the internet or using foreclosure notices to find targets. Scammers offer to refinance mortgages by asking debtors for direct payments, and sometimes for deeds to homes. In some cases, the scammers will file for bankruptcy, stopping the foreclosure process while they continue to rake in the money. Debt relief scams have become very popular in the student loan industry. The Consumer Financial Protection Bureau and the Department of Education have warned recent graduates and former students to be on the lookout for organizations offering…
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