high interest – Rigel Group LLC http://rigelgroupllc.com/ Fri, 04 Feb 2022 10:28:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://rigelgroupllc.com/wp-content/uploads/2021/10/icon-13-150x150.png high interest – Rigel Group LLC http://rigelgroupllc.com/ 32 32 Interest rate ceilings on securities lending are coming soon ► FINCHANNEL https://rigelgroupllc.com/interest-rate-ceilings-on-securities-lending-are-coming-soon-%e2%96%ba-finchannel/ https://rigelgroupllc.com/interest-rate-ceilings-on-securities-lending-are-coming-soon-%e2%96%ba-finchannel/#respond Wed, 08 Sep 2021 16:24:53 +0000 https://rigelgroupllc.com/interest-rate-ceilings-on-securities-lending-are-coming-soon-%e2%96%ba-finchannel/ [ad_1] The Senate Banking, Housing and Urban Affairs Committee proposed this interest rate cap in a hearing and expressed the intent behind the idea. This bill aims to help American consumers avoid paying excessive and unreasonable amounts on small loans. What would this interest rate cap look like? Would this law reduce the debt of […]]]>


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The Senate Banking, Housing and Urban Affairs Committee proposed this interest rate cap in a hearing and expressed the intent behind the idea. This bill aims to help American consumers avoid paying excessive and unreasonable amounts on small loans.

What would this interest rate cap look like? Would this law reduce the debt of poor communities or remove a lifeline by bankrupting lenders?

This article explains how the federal interest rate cap of 36% on consumer loans will affect short-term loans.

Low value short term loans

The lenders that will be most affected by this bill will be the short-term lenders, such as payday lenders and title lenders.

  • Payday lenders let borrowers borrow against their wages. The loan must be repaid after two weeks or you can roll it over. All you need to be approved is a valid ID, a bank account, and a regular paycheck.
  • Securities lenders allows you to borrow against your vehicle. If you can’t repay your loan, they have the right to repossess your car. All you need to get approved is a valid piece of identification and an outstanding vehicle in your name.

Both types of loans are expensive – usually triple-digit APR rates because almost everybody is approved.

These types of lenders not manage your credit, making it the only option for getting cash in an emergency or if you can’t get approval from the bank.

Interest rates and charges for consumer loans

Not all states allow payday lending or securities lending. But of those who do, only 18 states have a 36% interest rate cap in place for payday loans and securities lending.

Without federal interest rate caps, some state lenders charge as much as APR 600%. Because taking a loan is so easy – all you need is a valid ID, bank account, and proof of income – just about anyone can fall victim to unfair and unreasonable loans .

Consumer loans that exceed 36% interest are expensive and can be an extreme challenge to repay. About 25% of payday loans end up being borrowed at least nine times, so for some people the interest and fees end up getting expensive. Following than the amount borrowed.

Reintroduce the invoice

This idea of ​​a federal interest rate cap was introduced in 2019. The bill will soon be reintroduced. The purpose of this bill is to help American consumers avoid paying excessive and unreasonable amounts on small loans.

Failure to comply with the 36% interest rate ceiling could result in the nullity of the loan once this law is adopted. This means that the lender will not be able to collect or keep the principal, fees, interest or other charges on the loan.

If this legislation passes, all charges on a credit transaction, including all charges, must be included in the APR. Otherwise, lenders could charge excessive fees as a loophole.

Fortunately, the big banks have taken steps to provide reasonable and responsible lending to American consumers.

The role of the bank

The big banks have recently introduced low-cost lending programs, which have put a strain on payday lenders and securities lenders.

https://www.cnbc.com/2021/05/28/big-bank-ceos-open-to-federal-36percent-interest-rate-cap-on-consumer-loans.html

If small lenders go out of business – which some lenders claim is possible if a federal interest rate cap kicks in – the banks will have an advantage.

As of May 2020, the Federal Reserve has allowed banks to offer low-value loans, as long as they adhere to lending principles. This ensures that the loans are fair and responsible.

Why 36%?

Proponents of the 36% interest rate cap believe 36% is a fair and reasonable amount to charge on a small loan. This number is not arbitrary. It has been asserted as an appropriate amount to charge so that the majority of borrowers can repay it.

Simply put, an interest rate of 36% is the upper limit for durable loans. This number ensures that lenders do not take advantage of borrowers while still being able to stay in business.

What Would the Federal Interest Rate Cap Mean for Payday Lenders?

If this legislation is passed, lenders will have to work quickly to adapt to this new regulation. They will first need to decide if they can stay in business while charging a maximum interest of 36%. Otherwise, they will have to make serious changes to their budgets.

Payday lenders will no longer be able to keep consumers in a loan – they do this by offering to renew the loan or take out another loan – because it will be much easier for the consumer to repay the loan in the first place.

More and more states are imposing the 36% cap

In recent months, many states have placed limits on interest rates on payday and other short-term loans to protect consumers from debt traps. Interest rates on short-term loans drop from 400% to 36% across the country.

Other states have proposed the bill but are awaiting the governor’s signature. States like Ohio have introduced other limits and regulations that have helped reduce exorbitant interest rates on payday loans.

Even though many states are moving towards more equitable payday loans and land titles, more than half of U.S. states do not have allrestrictions on short-term loans. Anyone with a valid identity document and proof of income can take out a loan.

According to a securities lender, Texas is the state with the highest interest rates on securities lending. The average APR for a subprime loan in Texas is 664%, which is insanely high. This interest rate is 40 times higher than the average credit card interest rate.

Benefits of the Federal Capped Interest Rate

The main benefit of the federal capped interest rate is that it will protect consumers from drowning in high cost loans. Supporters of this bill believe that any interest rate above 36% is predatory.

This federal interest cap will end the high cost payday loans that have stolen billions of dollars from American consumers. These lenders derive most of their profits by luring borrowers into a debt trap, a never-ending cycle of debt repayment.

High cost payday loans benefit American consumers who cannot get loan approval from traditional banks. These predatory payday loans are known to take hold in poor communities and prey on naive and desperate consumers.

Payday loans and title loans should be seen as a way to help people in financial emergency, not a way to take advantage of desperate people and trap them in debt.

Some people think that payday loans and title loans are going bankrupt. People will then rely on banks for small loans, which could protect them from predatory lending and reduce systemic racism.

The disadvantages of the federal capped interest rate

Opponents of the idea of ​​a capped federal interest rate claim that this policy will actually reduce access to credit because it will bankrupt lenders. If lenders go bankrupt, consumers will have nowhere to go for emergency cash.

Opponents of this bill also believe it takes money from the economy when lenders go bankrupt. Payday lenders help people pay for car repairs so they can go to work, pay medical bills, and pay for other emergencies.

Plus, the high interest rates charged by short-term lenders seem high, but in reality, the short loan term and small loan amount mean that most borrowers don’t pay more than $ 50. However, this only applies to small, short term loans.

A different approach

Another approach that could help consumers avoid excessive debt is to introduce a policy that requires lenders to turn down borrowers who apply for loans within 30 days of taking out three consecutive payday loans.

This approach would regulate payday loans by limit repeated borrowing, which could help consumers avoid debt traps. This would force consumers to repay the loan rather than continue to borrow.

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Are Car Title Loans a Smart Move? (2021) https://rigelgroupllc.com/are-car-title-loans-a-smart-move-2021/ https://rigelgroupllc.com/are-car-title-loans-a-smart-move-2021/#respond Mon, 30 Aug 2021 10:09:30 +0000 https://rigelgroupllc.com/are-car-title-loans-a-smart-move-2021/ Title loans for cars are short-term loans with very small amounts of money for your car. Achieving the auto title loan requires giving the lender the title to your car. Auto title loans are subject to higher interest rates and charges which render them hard to pay back. If your bank accounts don’t appear to […]]]>
  • Title loans for cars are short-term loans with very small amounts of money for your car.
  • Achieving the auto title loan requires giving the lender the title to your car.
  • Auto title loans are subject to higher interest rates and charges which render them hard to pay back.

If your bank accounts don’t appear to be in good shape and you’re in bad credit, you may have thought about getting the possibility of a title loan for your car as a convenient method to earn cash. Although they could be a small amount of money, these loans are dangerous if you don’t have a good handle on your financial situation.

This article will explain the way in which auto title loans operate and analyze the benefits and risks of having one. To assist consumers in making more informed decisions about their finances Our research team searched the market to find the top auto loan firms.

What are the Car Title Loans?

In contrast to payday loans, which serve the same purpose they function by using your car as collateral. These loans secured by your vehicle are designed for smaller amounts of money and usually need to be paid back within a brief period of time.

According to the Pew Charitable Trusts reports that the average amount of loans is $1000. Because these loans are short-term typically with terms from 15-30 days the borrowers generally have to pay the loan in one go.

What is the process for car Title Loans work?

The procedure to get an auto title loans is quite easy:

  1. The first step is to must fill out an application. Then, you show your car, title, as well as the photo identification to your lender. It is possible to request an additional set of keys.
  2. When the loan gets approved the lender for the car title swaps the loan amount and keeps the title to the car.
  3. When you are ready to repay you must pay the lender an annual cost in addition to the principal amount you borrowed.

The monthly charges for a car title loan are typically very high-interest. As per the Federal Trade Commission, the average cost is 25%. This is equivalent at an annual rate (APR) of around 300 percent. It isn’t cheap.

Let’s take an example. For instance, suppose you obtain an auto title loan at $ 500 , with the addition of a 25% fee for finance. Twenty percent of $ 500 is equal to $125 that will be added to the final amount due. At your time to repay you’ll be owed $ 625.

You can apply for an auto title loan

The borrower can apply for auto title loans both online or in person. A credit check is not included in the loan application procedure. The reason for this is that the failure to pay the loan can mean that the lender could take possession of your car.

In order to approve the application for a car title loan, most lenders require clear title. This means that you’ve purchased the car. But, some lenders might just require proof that you own equity in the car.

What are the reasons why car title loans are high risk?

If you take out the auto title loan you run the risk of not only losing your vehicle as well as being stuck in a cycle of debt. If you’re not able to pay back this loan on time, your lender could permit an “renewal”. A rollover occurs the process whereby a lender permits you to hold on to the loan for a further 30 days, but it makes sure that you pay monthly fees in addition to the original.

Reversals are not uncommon. In June The Consumer Finance Protection Bureau (CFPB) conducted a survey of those who had taken out auto title loans during the past six months. The results showed the 83% the respondents had outstanding debt on their loans.

The CFPB also revealed that around 20 percent of the borrowers suffer repossession if loans aren’t repaid in complete. According to Forbes auto title lenders get the bulk of their earnings by allowing borrowers to obtain new loans in order to pay off existing loans. This cycle of loans that are small that turn into long-term debt helps ensure the continuity of business.

What are the benefits and disadvantages of car title loans?

If you’re thinking of applying for an auto title loan in order to pay for unplanned expenses, you must think about the advantages and disadvantages.

Auto title loans are beneficial to borrowers with weak credit, as the majority of lenders don’t conduct credit checks. In addition your credit score won’t be affected if you’re in late with a loan payment. But, the speedy access to cash using the help of an auto title loans seldom justifies the cost of interest and the possibility of losing the value of your asset.

Alternatives to loans for cars

The data on auto title loans is not the best choosing a different route is probably a wiser option for financial reasons. Here are a few alternatives for show your car’s title

  • Payment day advance If you’re at a good place with your company, you could be eligible for a part of your earnings earlier.
  • Family and friends If you’d like to stay clear of any financial institution Try chatting with your relatives and friends to see if you are able to come up with a loan arrangement that includes a payment plan.
  • credit card credit cards have defined limits and you’ll incur interest charges if are unable to pay your account in full by the expiration of the billing period. However, credit cards offer lower rates of interest than loans secured by car title.
  • Personal loan The installment loans are suitable for nearly every financial need. They’re available at financial institutions, such as credit unions or online lender. They typically have terms for repayment that range from one to five years. They also have interest rates are generally lower than those of auto title loans.

Best tips for auto loans

When you’re financing your car or using it as collateral, you need to evaluate your options to be sure you’re receiving the best rate. It’s a good idea to go over the terms of any loan, and also check for penalties. Additionally, you can take advantage of online prequalification services offered by several financial institutions.

FAQ: Title loans for cars

What title loan should I take out for my car?

As per the CFPB the average car title loan is approximately $1,000. The typical loan amount is between 25 to 50% of worth of the vehicle.

Is it easy to Take A Car Title A Loan?

The process of getting a title loan for a car is quite simple. The borrower has to fill out an application , and then lets the lender look over the car and the title. If the title and ownership for the car is in order and the lender is satisfied with the application, then the borrower will return the title in exchange for an installment loan.

What is the process for auto title loans function?

The auto title loan is term loans that are short-term and have very high rates of interest. When you take out a loan for your car title the lender holds the title of your car as collateral. If you don’t pay back the loan the lender has the right to seize the car.

Does Securities Lending Affect Your Credit?

A majority of auto title loans don’t need a credit check. The lender is not likely to report payments to credit bureaus due to the fact that they could repossess the car to pay off the debt.

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How To Find The Best Securities Loans Online https://rigelgroupllc.com/how-to-find-the-best-securities-loans-online/ Tue, 16 Feb 2021 08:00:00 +0000 https://rigelgroupllc.com/how-to-find-the-best-securities-loans-online/ Sometimes life circumstances require you to assess your financial situation, and you may decide to go for a title loan to cover an unforeseen expense. Although this type of loan comes with high interest rates and often requires you to comply in the short term, some people choose them because they do not take into […]]]>

Sometimes life circumstances require you to assess your financial situation, and you may decide to go for a title loan to cover an unforeseen expense. Although this type of loan comes with high interest rates and often requires you to comply in the short term, some people choose them because they do not take into account the applicant’s credit rating and usually they can. be approved very quickly. By looking for the best online securities lending, target anti-scam or financial review sites to see if people have made complaints about their services. In these reviews, you will also get a better overview of the title lender’s application process. If you are considering a title loan to help pay for an unexpected expense, the collateral asset most often requested by lenders is a vehicle. If you are planning to go for a title loan in the near future, we are sharing some information on how to find the best title loans online.

Check licenses

One of the first steps you need to take once you have located a business that offers these types of services is to make sure that they are legally licensed to operate in your area. Usually, you can look at online directories dedicated to listing licensed securities lending companies, or the company’s website should display and use this information. If you go to their offices in person, they should display the business license in a public space.

You should do your research beforehand and ask for more options by consulting your friends and family or going online. Too many people fall in love with con artists who take advantage of their victim’s poor financial situation. Take all necessary precautions to ensure that you have chosen a legitimate business and that they will keep your collateral assets safe. Look around their desks and assess how they maintain their workspace, how they treat other customers, and how they respond to your requests. Any securities lender should be transparent in their operations and willing to dispel your doubts about how they will manage your assets while you agree to repay.

Search Reviews

Before deciding to go ahead with a contract, another good practice that you can follow is to do a quick online search for reviews of other clients of the securities lending provider. As you read these reviews, take notes on their comments on customer service and contractual agreements. Some may require you to verify your identity via a phone call, while others may go through the entire application online. These customer reviews can also determine whether the lender requires visual inspections of your car before releasing the agreed amount. All of these details are critical in determining whether you’ll be dealing with a respectable company, or whether you should avoid a potential scam.

Understand the reimbursement conditions

Once you have several options at your fingertips, start comparing their fees, interest, and rents. Usually, when you ask for more money, the overall cost will be higher as well. If you opt for a longer repayment term, keep in mind that this may impact the total amount you repay the company. A rule of thumb for title loans should be a 30-60 day repayment term, similar to payday loans, and make sure the interest rate never exceeds 30% of your principal.

Depending on the lender, the fine print can specify restrictions that can work against you significantly. For example, they can add penalties associated with prepayments or impose mileage restrictions on your vehicle as an excuse to reject it as a collateral asset. Check every detail of every form before filling out your information and remember that you have the right to look at other options and not to go ahead with a title loan if you are uncomfortable. with that.

Finding financial solutions can become a complex situation without a clear direction. Some people go through a title loan and can find themselves in a worse situation if they do not stick to the repayment options. You need to understand the implications written into the contract, and come up with a savings plan yourself that will keep you afloat and keep your vehicle. And last but not least, even if it seems a little obvious: try to choose a lender who will allow you to continue using your car for the duration of the contract. Not all businesses have the same policies regarding collateral assets, so stay tuned if you don’t want to waste your only mode of transportation for instant cash!

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How Do Car Title Loans Work? https://rigelgroupllc.com/how-do-car-title-loans-work/ https://rigelgroupllc.com/how-do-car-title-loans-work/#respond Fri, 14 Aug 2020 07:00:00 +0000 https://rigelgroupllc.com/how-do-car-title-loans-work/ [ad_1] All loans carry risk if they are not repaid on time. One particularly troubling consequence of a car title loan, however, is if you default on your payment obligations: the lender can take your vehicle. Before you consider getting a title loan, think about the potential potholes you will encounter if you use your […]]]>


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All loans carry risk if they are not repaid on time. One particularly troubling consequence of a car title loan, however, is if you default on your payment obligations: the lender can take your vehicle.

Before you consider getting a title loan, think about the potential potholes you will encounter if you use your vehicle as collateral to borrow money.

What is a title loan?


Definition of car title loan

An auto title loan is a short-term loan that allows you to get a small amount of money in exchange for handing over the title of your vehicle to the lender. You will also have to pay a significant fee to borrow the money.


Let’s say you own a car worth $ 5,000 and you find yourself in an emergency that requires $ 1,000. A title loan allows you to borrow against your vehicle, which allows you to quickly get that $ 1,000. Just like a mortgage is against your home, a title loan uses your vehicle as collateral.

“One of the biggest pieces of information people need to understand about a title loan is that it uses your vehicle’s equity to secure the money you borrow,” says Bruce McClary, vice-president. communications chair for the National Foundation for Credit Counseling. .

In most cases, you must own your vehicle to be eligible for an auto title loan. The term “car” may appear in the name of the product, but these loans may also be available for motorcycles, boats and recreational vehicles.

While some lenders will offer loans if a car is still in repayment, most require the owner to hold title without any debt related to the vehicle. Consumers can typically borrow between 25 and 50 percent of the value of the car.

How does securities lending work?

Car title loans come in many forms. Some are lump sum loans, which means the borrower has to pay the full loan amount plus interest charges within a month or so. Installment loans, with similarly high APRs, can be repaid over three or six months, depending on the lender.

When applying for a car title loan, be prepared to show the lender clear title, proof of insurance, and photo ID. Some lenders ask for a second set of keys.

While securing a title loan can be easy, the convenience comes with significant costs and risks, according to Graciela Aponte-Diaz, director of federal campaigns at the Center for Responsible Lending.

“Some auto title lenders install a GPS device – dubbed a ‘kill switch’ – that can prevent the borrower’s car from starting, using this practice as a way to collect debt or facilitate foreclosure of the car,” explains Aponte-Diaz. . “In addition to being (the) primary form of transportation to work, to the doctor and elsewhere, a car is often a person’s biggest financial asset. The looming threat of losing your car is anxiety-provoking, to put it mildly.

Disadvantages of Securities Lending

The main disadvantages of title loans are a short repayment period, very high interest rates, and the potential loss of your car if you default on your payment.

“These are generally short-term loans with very tight repayment cycles,” says McClary. “If you can’t pay the loan back when it falls due, it gets carried over to another cycle with more fees. This creates a very difficult situation for people who are already struggling to repay. This is the exact definition of the debt cycle.

In addition to tight repayment terms, auto title loans have extremely high interest rates. Lenders often charge 25% each month in finance fees. On a $ 2,000 loan, you will pay an additional $ 500 in interest if the loan is paid off in 30 days. If you are behind on your payment and those interest charges add up, the loan can end up costing much more than the original sticker price.

Perhaps the biggest downside is losing your car. If you can’t pay it back, the lender can take your vehicle back. In 2016, a Consumer Financial Protection Bureau study found that 20% of those who take out title loans have their vehicle seized.

Alternatives to securities lending

With such drawbacks, McClary recommends reaching out to traditional banks and credit unions to explore other, less expensive lending options.

“A lot of people might avoid traditional lenders because of assumptions about their credit,” he says. “It’s the most dangerous thing you can do. You are depriving yourself of money that you could potentially save.

Even if you don’t have a bank account, have a lower credit rating, or have struggled with bad financial decisions in the past, it’s worth investigating all of your loan alternatives. “It’s interesting how flexible these traditional lenders can be,” says McClary. “There are a lot of credit unions that are willing to work with unbanked customers. “

McClary says he rarely advises increasing credit card debt, but stresses it’s a better option than a title loan. “If you have unused credit on a credit card, you can count on it to cover your costs,” he says. “In most cases, the interest rate on your credit card will be much lower than what you get on a car title loan. And this route prevents you from potentially losing your vehicle.

At the end of the line

If you decide that a car title loan is your only option, make sure you understand the terms of the loan. Securities lenders are required to show them to you in writing before signing, and federal law requires them to be honest and upfront about the total cost of the loan. And remember, these costs are probably not worth the risk.

“Car title loans often lead people to get into debt and lose their cars,” says Aponte-Diaz. “Car title lenders often make people worse off than they were before they took out the loan.”

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Title loans trap consumers in debt, consumer group warns https://rigelgroupllc.com/title-loans-trap-consumers-in-debt-consumer-group-warns/ Thu, 16 Jul 2020 07:00:00 +0000 https://rigelgroupllc.com/title-loans-trap-consumers-in-debt-consumer-group-warns/ Millions of Americans have suffered job or income loss due to the coronavirus pandemic. If you are among them and are considering taking out a car pawn loan to help you meet your expenses, think carefully. Taking out a loan against the value of your car seems simple. Lenders give you money in exchange for […]]]>

Millions of Americans have suffered job or income loss due to the coronavirus pandemic. If you are among them and are considering taking out a car pawn loan to help you meet your expenses, think carefully. Taking out a loan against the value of your car seems simple. Lenders give you money in exchange for the title to your car. But many borrowers complain about working like the legendary California Hotel. As the song explains, “You can check in whenever you want, but you can never leave.” Well, never is a strong word. You can possibly leave, but only after paying large sums of interest. What size ? You could pay $6,000 just to borrow $2,000,” said Liz Coyle, executive director of Georgia Watch, a statewide consumer advocacy group. The nonprofit has been fighting for more than a decade for greater regulation of short-term, high-interest loans. Borrowers who can’t keep up with payments on the common three-digit interest in the business can lose their car – often their only transportation to work, errands and medical care. “People are desperate. And that’s really the problem with this type of loan. It seems the business model for car title lenders is to cluster around low-income communities, often communities of color. Often, access to traditional financial services, regular bank accounts or credit unions is limited. And so people will do desperate things and they’ll borrow more than they realize it’s going to cost them. Title lending companies recognize that they lend to high-risk borrowers with poorly established credit. However, consumer advocates say lenders fail to adequately explain the final cost of the loan. This month, the federal Consumer Financial Protection Bureau eliminated consumer protections against predatory payday and car title lenders. Coyle said it couldn’t have happened at a worse time because so many families are already struggling to cope. Georgia Watch is urging state and federal lawmakers to enact new regulations to protect consumers from high-interest securities lending. Generally, interest on small consumer loans in Georgia cannot exceed 60%. But these regulations do not cover loans involving car titles, which state law considers pledged items. short of money, contact your lenders. Many utility companies, for example, suspended disconnections during the pandemic. If you’re feeling overwhelmed, try contacting a nonprofit like Consumer Credit Counseling Service of Savannah to help you develop a budget. Do you have a question or have consumer issues? Email me here at WJCL-TV: ASA@askasa.com.

Millions of Americans have suffered job or income loss due to the coronavirus pandemic. If you are among them and are considering taking out a car pawn loan to help you meet your expenses, think carefully.

Taking out a loan against the value of your car seems simple. Lenders give you money in exchange for the title to your car. But many borrowers complain about working like the legendary California Hotel. As the song explains, “You can check in whenever you want, but you can never leave.”

Well, never is a strong word. You can possibly leave, but only after paying large sums of interest.

Wide how?

“Currently, they charge between 187% and 300% annualized percentage, which makes it virtually impossible for people to pay off their title. You could pay $6,000 just to borrow $2,000,” said Liz Coyle, executive director of Georgia Watch, a statewide consumer advocacy group. The nonprofit organization has been fighting for more than a decade for greater regulation of short-term, high-interest securities lending.

Borrowers who cannot pay the common three-digit interest in the business may lose their car – often their only means of transportation to work, shop and seek treatment.

“People are desperate. And that’s really the problem with this type of loan. It seems the business model for car title lenders is to cluster around low-income communities, often communities of color. Often, access to traditional financial services, regular bank accounts or credit unions is limited. And so people will do desperate things and they will borrow more than they realize it will cost them.

Title lenders recognize that they lend to high-risk borrowers with poor credit. However, consumer advocates argue that lenders do not adequately explain the final cost of the loan.

Just this month, the federal Consumer Financial Protection Bureau eliminated consumer protections against predatory payday lenders and car title lenders. Coyle said it couldn’t have come at a worse time because so many families are already struggling to cope.

Georgia Watch is urging state and federal lawmakers to enact new regulations to protect consumers from high-interest loans. Generally, interest on small consumer loans in Georgia cannot exceed 60%. But these regulations do not cover loans involving car titles, which state law considers pledged items.

“They should be regulated by the Department of Banking and Finance and they should be subject to the state usury cap,” she said.

If you are short of money, contact your lenders. Many utility companies, for example, suspended disconnections during the pandemic. If you’re feeling overwhelmed, try contacting a nonprofit like Consumer Credit Counseling Service of Savannah for help with budgeting.

Do you have a question or a consumption problem? Email me here at WJCL-TV: ASA@askasa.com.

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Important Things To Know About San Francisco Car Title Loans https://rigelgroupllc.com/important-things-to-know-about-san-francisco-car-title-loans/ https://rigelgroupllc.com/important-things-to-know-about-san-francisco-car-title-loans/#respond Wed, 08 Apr 2020 07:00:00 +0000 https://rigelgroupllc.com/important-things-to-know-about-san-francisco-car-title-loans/ [ad_1] San Francisco is known to be a culturally wealthy and progressive city that has been highly acclaimed as one of the best financial centers in the United States today. Even though San Francisco is a beautiful city that boasts of fun and exhilarating destinations, it could be quite a stressful and demanding place for […]]]>


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San Francisco is known to be a culturally wealthy and progressive city that has been highly acclaimed as one of the best financial centers in the United States today. Even though San Francisco is a beautiful city that boasts of fun and exhilarating destinations, it could be quite a stressful and demanding place for people living here who are increasingly faced with costly and unforeseen expenses. Above all, with the current COVID-19 health crisis and the economic crisis, you may be looking for some kind of help. According to reports, the coronavirus could trigger a severe recession or slowdown in the United States.

According to https://edition.cnn.com, auto title loans were designed for anyone looking for quick cash to pay bills, manage debts, or deal with existing health and financial emergency.

According to https://edition.cnn.com, as stores, restaurants, factories and airlines are closing all over the world, from Madrid and Paris to New York and San Francisco, economists constantly warn that a recession across the world is no longer a problem. imminent threat, it is there.

If you own a car, you can avail a very quick and easy car title loan. However, you might have to pay quite high fees or if you default on your payments, you could risk losing your vehicles. Car title loans are for people who need quick cash to pay bills, manage debts, or deal with today’s emergency.

Here are some important points to keep in mind while availing a car title loan.

To get a loan, you must own your vehicle or have equity in the car

San Francisco car title loans are meant to be a secured loan that views your vehicle as collateral. Auto title loans would range from $ 100 to about $ 5,500, or about 25 to 50% of the value of your vehicle. The term of the loan seems to be quite short usually only 15 to around 30 days. Even though it is called a car title loan, you can get this cash advance using your trucks or motorcycles or any other vehicle. You would need a clear title to qualify for this loan. You need to provide a photo of your car, proof of insurance, photo ID, and proof of income to qualify for this loan. If you get a car title loan approval, you will have to immediately assign the title of your car to the lender in exchange for your loan.

Car Title Loans Could Mean High Fees Or High Interest Rates

Lenders could charge almost 25% of the total loan amount each month to fund your loan. For example, to get only a 30-day loan for $ 1,000, your fee could be 25% of the amount. Therefore, you have to pay back $ 1,250 and other additional charges to pay off the car title loan at the end of the month. This would translate to an APR of over 300%. It seems pretty high. However, you simply cannot interfere with the convenience and speed with which the loan is approved and processed.

Conclusion

If you are in a crisis and cannot repay the loan, you may have to give up the car. The lender would be obligated to repossess your vehicle in such circumstances. Know your facts before you opt for this. But remember that your credit history is irrelevant and you could qualify for this loan with even a bad or no credit history.

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Consumer advocacy group hopes elected officials will close ‘loophole’ car title loans | News https://rigelgroupllc.com/consumer-advocacy-group-hopes-elected-officials-will-close-loophole-car-title-loans-news/ Tue, 03 Mar 2020 08:00:00 +0000 https://rigelgroupllc.com/consumer-advocacy-group-hopes-elected-officials-will-close-loophole-car-title-loans-news/ ATLANTA (CBS46) — A consumer advocacy group is pushing for Georgian lawmakers to pass a law the group says will prevent lenders from taking advantage of consumers. A representative from Georgia Watch, a statewide consumer advocacy group, testified Monday at the Georgia State Capitol to urge lawmakers to pass the Motor Vehicle Title Loan Act, […]]]>

ATLANTA (CBS46) — A consumer advocacy group is pushing for Georgian lawmakers to pass a law the group says will prevent lenders from taking advantage of consumers.

A representative from Georgia Watch, a statewide consumer advocacy group, testified Monday at the Georgia State Capitol to urge lawmakers to pass the Motor Vehicle Title Loan Act, SB329.

According to Georgia Watch, the law, if enacted, will close a loophole and protect consumers from high-interest car title loans.

“Some smaller lenders prey on financially insecure consumers by offering fast, high-interest cash loans that trap consumers in a cycle of debt.

Georgia’s usury law caps the interest rate on most small consumer loans, but a legal loophole allows car titles to be ‘pledged’ at interest rates of up to 300% , rates that would otherwise be considered usurious,” according to a press release from the advocacy group.

Georgia Watch reported that closing the legal loophole would protect Georgians by:

• Ensure that money loaned in exchange for a car title is treated as a “loan” rather than a “pawn”

• Align securities lending with current small loan industry standards

• Level the playing field for Georgians by leveling title loans across the state.

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Auto title lending capped in Georgia Senate bill – news – the Augusta Chronicle https://rigelgroupllc.com/auto-title-lending-capped-in-georgia-senate-bill-news-the-augusta-chronicle/ https://rigelgroupllc.com/auto-title-lending-capped-in-georgia-senate-bill-news-the-augusta-chronicle/#respond Sun, 09 Feb 2020 08:00:00 +0000 https://rigelgroupllc.com/auto-title-lending-capped-in-georgia-senate-bill-news-the-augusta-chronicle/ [ad_1] ATLANTA – The practice of pledging car title to make ends meet could become a bit more restrictive in Georgia under a bill with bipartisan backing. By using a vehicle as collateral, auto title loans quickly provide small amounts of money to cash-strapped borrowers without the need for a credit check. The loans, which […]]]>


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ATLANTA – The practice of pledging car title to make ends meet could become a bit more restrictive in Georgia under a bill with bipartisan backing.

By using a vehicle as collateral, auto title loans quickly provide small amounts of money to cash-strapped borrowers without the need for a credit check. The loans, which can carry high triple-digit interest rates, can cost borrowers their vehicles as well as any outstanding debt balances in the event of default.

For developers, loans provide a way for people to stay afloat financially in times of hardship. These borrowers may not be eligible for other types of loans offered by banks or credit unions, depending on the securities lenders. High interest rates help offset the risk of lending to less financially stable borrowers, they say.

But critics argue that the practice helps trap the state’s most vulnerable populations in a cycle of debt, especially for black and low-income communities. Consumer groups have long called for more legal safeguards on securities lending to curb so-called “predatory lending” techniques.

Senate Bill 329 would cap interest rates at 36% per annum for auto title loans in Georgia, closer to how other small-sum loans are regulated. It would also set stricter conditions for refinancing and set limits on the amount of money a lender could receive in the event of default.

Bill’s sponsor Senator Randy Robertson R-Cataula said he was inspired by a Columbus voter whose elderly father pledged his car title to pay his utility bills and then fell into a hole because of the increasing monthly loan payments. 166% interest rate.

Robertson said he modeled legislation on the 37% interest rate caps that the U.S. Department of Defense imposed on loans approved for the military in 2006.

“I don’t want to kill the businesses and I certainly don’t want to close a path that a segment of the population might need to get by,” he said. “What I want to do is align this path with what comes closest to it.”

Senator Chuck Hufstetler, Republican Chairman of the Senate Finance Committee, is a co-sponsor of the bill along with three fellow Democrats: Senator Zahra Karinshak, Ed Harbison and Sheikh Rahman.

The bill would also move regulation of small consumer loans from the State Department of Insurance to the State Department of Banking and Finance. Governor Brian Kemp has already understood that this entry in the state budget for the fiscal year 2021.

Small consumer loans are regulated to varying degrees in Georgia depending on the size and type of loan, but none can carry interest rates greater than about 60% per annum below the usury cap. State.

This does not cover loans involving car titles, which state law considers pledged items. Pawn shops are subject to interest rates of 25% per month for the first 90 days, and then 12.5% ​​per month every 30 days thereafter.

Consumer protection advocates see the designation of pledges as a loophole that has prompted automatic securities lending to swell in Georgia. The Georgia Watch nonprofit estimated that 755 securities lending companies were open in Georgia in 2018 and collected a total of nearly $ 200 million in interest.

Georgia Watch executive director Liz Coyle said these companies often prey on distressed borrowers who are desperate for cash and willing to take on high-interest loans for years to avoid losing their cars.

“Pledging your car’s title is not the same as pledging your grandfather’s watch,” Coyle said. “It’s a debt trap.”

Robert Reich, president and CEO of Atlanta-based loan company Community Loans of America, disagreed with this characterization. In a statement, he said the high interest rates reflect the risk of these loans and argued that they should be regulated by local county and city rules, not the state.

“These are high risk financial transactions, and we look forward to working with the author to learn more about our industry in the hope of providing non-bank clients with options that would not otherwise exist,” Reich said. .

A better approach, Reich said, would be to adopt the regulations proposed in legislation passed in 2017 by Representative Brett Harrell, R-Snellville, which would limit loan terms but keep largely the same interest rates. Georgia Watch called the measure not tough enough. He stalled in the State House.

For his part, Robertson has pitched his bill as a way to curb small loans that could help alleviate “generational poverty” that can make people commit crimes.

Robertson, a retired major in the Muscogee County Sheriff’s Office, said many Georgians who ended up in jail were raised in families who had to call in “quick cash-type businesses” to join. both ends.

“It empties jails and jails,” Robertson said of his bill. “We have to stop the behavior that causes them to be incarcerated, and I think reliance on predatory loans is part of that behavior.”

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Arizona Fair Lending Act Would Ban High Interest Car Title Loans https://rigelgroupllc.com/arizona-fair-lending-act-would-ban-high-interest-car-title-loans/ https://rigelgroupllc.com/arizona-fair-lending-act-would-ban-high-interest-car-title-loans/#respond Mon, 17 Jun 2019 07:00:00 +0000 https://rigelgroupllc.com/arizona-fair-lending-act-would-ban-high-interest-car-title-loans/ [ad_1] Signature collectors are starting to roll out across Arizona in an attempt to curb one type of high interest loan in the state. About 20 community groups on Tuesday launched a campaign to label a measure that would cut car loans with high interest rates and, critics say, trap borrowers in a cycle of […]]]>


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Signature collectors are starting to roll out across Arizona in an attempt to curb one type of high interest loan in the state.

About 20 community groups on Tuesday launched a campaign to label a measure that would cut car loans with high interest rates and, critics say, trap borrowers in a cycle of debt.

The year-long drive for the Arizona Fair Lending Act aims to bring together more than 237,000 signatures to register the measure in the November 2020 ballot. This comes 11 years after the Arizonans defeated Proposition 200, which reportedly extended payday loans indefinitely. An enabling statute expired two years later, ending payday loans here.

“We thought we took over (the predatory loans) in 2008,” said State Senator Lela Alston, a Democrat from Phoenix who spoke at the launch rally in front of a store. LoanMax securities lending located on 15th Avenue and McDowell Road in its neighborhood.

“But these weasels have found a loophole in auto title lending,” she said.

Loans linked to the value of vehicles

Auto title loans allow vehicle owners to borrow against the equity in their cars and trucks, using their vehicle titles. Critics say the loans charge annualized interest of up to 204%. The Arizona Fair Lending Act would not ban lending, but would cap interest at 36%, ban lump sum payments, and restrict other practices.

The Arizona Fair Lending Act seeks to collect more than 237,000 signatures to proceed with the November 2020 ballot.

“I know a lot of friends and family who have used these loans,” said Cymone Bolding, chair of the Arizonans for Fair Lending coalition. One in five people who borrow against the value of their car or truck end up defaulting and losing their vehicle, she said.

Arizona residents pay more than $ 250 million in interest on loans each year, according to a study by the Center for Responsible Lending.

“The job is not done,” said Lee Lange of the Southwest Veterans Chamber of Commerce. “We still have predatory loans in the state.”

Military personnel on active duty are protected against paying more than 36% annualized interest on loans, but guarantees do not apply to veterans and their family members, he said.

An Arizona securities lending group did not immediately respond to a request for comment on this article.

Low Income Coalition

Groups supporting signature collection include the Military Officers Association, the Teamsters, Living United for Change in Arizona or LUCHA, the St. Vincent de Paul Society of Tucson, the Center for Responsible Lending, the Southwest Fair Housing Council and the NAACP.

Groups must collect at least 237,645 valid signatures by early July 2020 to qualify the measure for polling later in the year. Volunteers and paid signature collectors are used in the effort.

Contact the reporter at russ.wiles@arizonarepublic.com or 602-444-8616.

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High-interest securities loans extended by ‘grace periods’ argued in Supreme Court https://rigelgroupllc.com/high-interest-securities-loans-extended-by-grace-periods-argued-in-supreme-court/ Tue, 05 Mar 2019 08:00:00 +0000 https://rigelgroupllc.com/high-interest-securities-loans-extended-by-grace-periods-argued-in-supreme-court/ The Nevada Supreme Court will soon rule on whether high-interest payday lenders can use “grace periods” to extend the term of a loan beyond what is permitted by law. state law. Court members on Monday heard arguments from lawyers questioning whether Titlemax, a high-interest securities lender with more than 40 locations in Nevada, should be […]]]>

The Nevada Supreme Court will soon rule on whether high-interest payday lenders can use “grace periods” to extend the term of a loan beyond what is permitted by law. state law.

Court members on Monday heard arguments from lawyers questioning whether Titlemax, a high-interest securities lender with more than 40 locations in Nevada, should be punished or be allowed to continue making loans that span the beyond the state’s 210-day limit for high interest. loans through creative use of “grace periods”.

Although the company stopped offering the loans in 2015, Nevada’s Division of Financial Institutions – which oversees and regulates payday lenders – estimated that the loans resulted in approximately $8 million in additional interest added loans to over 15,000 people.

Nevada law does not set a cap on the amount a lender can charge an individual on a specific loan, but any lender who charges more than 40% interest on a loan is subject to rules and restrictions set out in state law, including the maximum term of a loan and the guarantee that a customer can repay the loan.

The law also allows lenders to offer a “grace period”, to defer payments on the loan, as long as it is not granted on the condition of taking out a new loan or if the customer is charged a higher rate. to that described. in the existing loan agreement.

This provision has been used by Titlemax to create what are known as “grace period payment deferral agreements”, an option for customers to use a pre-loaded “grace period” where first payments are allocated to interest on a loan and additional payments—usually not allowed by state law—are made on the principal amount of the loan, extending it beyond the 210-day period.

The example used in the briefings quotes a real client who took out a $5,800 loan in 2015 at 133.7% interest over 210 days, with monthly payments of $1,230.45. But after entering into a “grace period payment deferral agreement,” the client’s loan period extended to 420 days, with seven payments of $637.42 and seven subsequent installments of $828.57 each. . This brought the total interest payment on the loan to $4,461, or $1,648 more than he would have had to pay under the original terms of the loan.

The lawsuit arose out of a regular review of Titlemax by the division in 2014, which highlighted the loans as violating state law by charging excess amounts of interest through the use of loans with “grace period”. But the company refused to stop offering loans, saying the practice was technically legal under Nevada law.

The resulting standoff culminated in an administrative law hearing, where the division prevailed and Titlemax was ordered to stop offering the loans and pay a fine of $307,000 (although much of it is refundable if the company complied with the conditions.)

But the company appealed, winning a reversal from Clark County District Court Judge Joe Hardy in 2017, who ruled the loans were permitted under Nevada law. The case was later appealed by the state to the Supreme Court.

Nevada Solicitor General Heidi Parry Stern listens to oral arguments in Nevada Supreme Court in Carson City, March 3, 2019. (David Calvert/The Nevada Independent)

Solicitor General Heidi Stern, representing the state on Monday, said the district court’s decision to uphold the loans as authorized by state law violates the intent and plain language of the law. , urging judges to interpret the loan structure as one not offered “for free”. but rather as a way for Titlemax to make more money from loans.

“This court said laws with a protective purpose like this must be liberally construed to effect the benefits intended to be obtained,” she said. “If this is truly a protective law, it is intended to reduce consumer burden, not increase it.”

Attorney Daniel Polsenberg speaks before the Nevada Supreme Court during oral arguments on March 4, 2019 (David Calvert/The Nevada Independent)

Daniel Polsenberg, a partner of Lewis Roca Rothgerber Christie, representing Titlemax, said legislative history has shown that the legislature changed the law from a total ban on charging interest during a grace period to an interest ban. “additional,” a change he says made the loan structure legal.

“The change in language would make it clear that we are allowed to charge interest, but not at a higher rate,” he said.

Polsenberg said the creation of the loan was an attempt to give “flexibility” to loan recipients, noting that no borrowers had testified against the loans throughout the case.

“If we were really doing this just to make more money, we wouldn’t have done this,” he said. “We would charge a higher interest rate in all areas at the very beginning.”

Although Polsenberg said the company had done its best to comply with the law as interpreted, Stern said the company’s actions – including continuing to offer loans after being warned against it by the Financial Institutions Division – required a more severe sanction.

“A mere $50,000 fine is not enough to both punish TitleMax or change their behavior,” she said. “So, more importantly, what FID really wants here, which is to restore consumers and protect them from what happened to them as a result of Titlemax’s behavior.”

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