title lenders – 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 title lenders – 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 […]]]>


[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 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.

[ad_2]

]]>
https://rigelgroupllc.com/interest-rate-ceilings-on-securities-lending-are-coming-soon-%e2%96%ba-finchannel/feed/ 0
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.

]]>
https://rigelgroupllc.com/are-car-title-loans-a-smart-move-2021/feed/ 0
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 […]]]>


[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 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.”

[ad_2]

]]>
https://rigelgroupllc.com/how-do-car-title-loans-work/feed/ 0
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.

]]>
Max Cash ™ Title Loans Analyzes the Challenges of the COVID-19 Effect on the Securities Lending Industry https://rigelgroupllc.com/max-cash-title-loans-analyzes-the-challenges-of-the-covid-19-effect-on-the-securities-lending-industry/ https://rigelgroupllc.com/max-cash-title-loans-analyzes-the-challenges-of-the-covid-19-effect-on-the-securities-lending-industry/#respond Tue, 28 Apr 2020 07:00:00 +0000 https://rigelgroupllc.com/max-cash-title-loans-analyzes-the-challenges-of-the-covid-19-effect-on-the-securities-lending-industry/ [ad_1] TEMPE, Arizona., April 28, 2020 / PRNewswire / – Title Deed Lenders United States are currently suffering a decline of 69% and up to 90% in other parts of the country. Pawn shops are experiencing unprecedented growth as Americans attempt to sell property for cash. Due to this car title loan, lenders have adapted […]]]>


[ad_1]

TEMPE, Arizona., April 28, 2020 / PRNewswire / – Title Deed Lenders United States are currently suffering a decline of 69% and up to 90% in other parts of the country. Pawn shops are experiencing unprecedented growth as Americans attempt to sell property for cash.

Due to this car title loan, lenders have adapted to everything online, but you will still have to use your cell phone to take pictures. Online title lending is here to stay. “Lenders are changing to help people comply with stay-at-home orders and avoid contact,” said Fred winchar, president of Bolt Loans and A maximum of moneyâ„¢ securities lending. “Securities lenders go out of their way to lend money, but they have challenges they’ve never seen before.”

Typically, title deed lenders generate income from individuals making payments on their loan, as well as occasionally repossessing vehicles from deferred loans. However, most lenders prefer to derive the majority of their income through payments, as the repossession of the vehicle comes with other extended expenses such as storage, security or disposal of the vehicle, if applicable. . Also seeking to avoid reputational damage, most title lenders are more reluctant than ever to repossess vehicles.

People who can usually turn to title loans as a practical short-term financial emergency solution can no longer receive approval because they no longer have valid proof of income. Since the ability to repay the loan is a documented requirement for title loan approval, the increase in the number of unemployed Americans has made it difficult for the title lending industry to accept loan applicants at its usual rate. Property title lenders want to lend. This is what they do. They are not in the business of giving money away without it coming back at some point.

Along with approval rates, loan amounts financed have also declined significantly for the securities lending industry. According to Fred winchar, President of Max Cash ™ Title Loans, “The average loan amount is now around $ 900, whereas before the average was around $ 3,500. “The current combination of low approval rates and low amounts funded has created a cash flow problem for many title lenders, leaving them with limited income to give back to the public through additional loans. While some are small. companies have closed their doors for good, many more are struggling to find qualified customers and stay afloat financially.

In response to this economic downturn in the industry, securities lenders still in business have had to find ways to adapt. Since lenders must Something rather than nothing to stay in business, small loans have become essential to sustaining the securities lending industry during this time. Some lenders also give “micro-loans”, which are as low as $ 100 and make the process all online. Other lenders have started working with banks to create a new loan product where the funding is held by the bank rather than backed by the securities lender that handles the loan.

Other auto title loan lenders have attempted to alleviate the problem by implementing a process in which the monthly payment decreases due to a continually falling interest rate. Some of these types of loans have the ability to drop to some of the lowest interest rates the securities lending industry has ever seen. In addition, some auto securities lenders only approve applicants who are extremely low risk, which is not the typical clientele typically served by the securities lending industry. These low risk, limited candidates now have the opportunity to profit from falling interest rates and potentially benefit from industry difficulties.

The securities lending industry recently adopted procedures to make doing business as secure as possible, such as online applications, processing and payments, lenders collectively struggle to remain financially stable in these unprecedented times.

As always, Max Cash â„¢ Title Loans encourages you, friends, and family to stay safe and healthy by complying with the CDC’s recommendations to stay home and practice social distancing.

Stay Safe, With Your Family of Max Cash â„¢ Securities Lending, https://www.maxcashtitleloans.com/

A maximum of moneyâ„¢ Securities lending
A maximum of moneyâ„¢ Title Loans, owned by Tradition Media Group, LLC, is a proprietary agency that uses an extensive network of lenders to help clients access securities lending services. A maximum of moneyâ„¢ Title Loans manages the processing of securities lending and the execution of sales to clients and can act as a broker for loans on a case-by-case basis.

CONTACT: Fred winchar, 1-877-958-1146, [email protected]

SOURCE Tradition Media Group

Related links

https://www.maxcashtitleloans.com

[ad_2]

]]>
https://rigelgroupllc.com/max-cash-title-loans-analyzes-the-challenges-of-the-covid-19-effect-on-the-securities-lending-industry/feed/ 0
Payday loans and car titles need reform https://rigelgroupllc.com/payday-loans-and-car-titles-need-reform/ https://rigelgroupllc.com/payday-loans-and-car-titles-need-reform/#respond Fri, 07 Feb 2020 08:00:00 +0000 https://rigelgroupllc.com/payday-loans-and-car-titles-need-reform/ [ad_1] By Rabbi Gary S. CreditorWhen my wife and I applied for our first credit card, I looked forward to it until it arrived. When we applied for our first car loan, I had no doubt that we would be approved. When we applied for our mortgage, I was also certain, but amazed at the […]]]>


[ad_1]

By Rabbi Gary S. Creditor

When my wife and I applied for our first credit card, I looked forward to it until it arrived. When we applied for our first car loan, I had no doubt that we would be approved. When we applied for our mortgage, I was also certain, but amazed at the amount of paperwork involved and the amount of information required. Never in our life have we needed short term loans or pledging the title of our car as collateral for a loan.

We have been blessed.

But for so many Virginians, their financial reality makes it impossible to get the loans and mortgages I received, so they have to go to the nearest payday lender. Then they often find themselves trapped in a terrible scenario to which there is almost no escape. In the Commonwealth, payday and car title lenders are able to charge interest rates of 200 and 300 percent. Although borrowers intend these loans to be short term to overcome them in times of emergency cash shortages, it often does not happen that way.

People who already have trouble paying their grocery bills or keeping the lights on end up paying more interest and fees than the original amount they borrowed. For example, in Virginia, the average car title loan is $ 1,116 and the average reimbursement cost is $ 2,700. Virginia also has one of the highest car repossession rates in the country. Those with the weakest financial situation are often plunged into poverty. Because those who lose their car titles lose their means of transport to work to earn money to repay loans! Virginia has the dubious distinction of having one of the highest car repossession rates on title loans in the country, because our laws have unusually weak consumer protections.

Any quick reading of the scriptures, especially Leviticus and Deuteronomy, finds many commandments whose ultimate goal is the alleviation of poverty and the elevation of the poor to equitable financial status. Simply replace the current terminology with agricultural terms. While the main objective may be utopian, namely to eradicate poverty altogether, in the meantime; the scriptures demand our attention and concern for the poor, the needy, and those unaware of the complexities of modern finances.

As the following verses are clear: “Do not put a stumbling block before the blind”, [Leviticus 19:14] and “Cursed be he who leads a blind man astray”. [Deuteronomy 27:18]. “Do not steal from the poor because he is poor! [Proverbs 22:22]. While the scriptures were composed long ago, their words resonate with force and demand upon our lawmakers in Virginia. They must regulate this industry and stop these practices which can cause financial ruin and lead to eviction and homelessness.

The countless religious communities of the Commonwealth of Virginia can find endless quotes in their sacred texts that echo the words of Leviticus, Deuteronomy, and Proverbs. In unity, faith communities bring this issue to the fore and together demand that the General Assembly pass laws to remedy this situation.

As a member of the Virginia Interfaith Center for Public Policy, I thought we had succeeded in championing this cause. In 2008, certain limits on payday loans were exceeded. But lenders quickly switched to offering “open-ended credit,” like a credit card but with 300% interest, tapping into another part of Virginia’s legal code where they are not required to license and can charge unlimited rates. Virginia is one of six states with so weak loan laws that payday lenders operate that way. Lawmakers in our states have attempted reforms over the years, but lenders have managed to block or bend the rules, so now we need to redouble our efforts and demands.

As our economy appears to be thriving with low unemployment rates and a strong stock market, the truth is that the gap between the lowest income members of our society and those with the highest incomes has widened in epic proportions. Vulnerable people are more vulnerable than ever. I realize that there will always be people who will need access to capital and immediate liquidity and companies that will accept different levels of risk to make it available. These lenders don’t need to swindle people at such usurious rates.

Evidence from other states shows that carefully crafted laws can provide strong guarantees to these businesses while allowing widespread access to lower-cost credit. In fact, some of the same companies that operate in Virginia today charge up to 300% interest charge less in other states. Why should our laws allow our citizens to be taken advantage of? Scripture commands: “There will be one law for the citizen and for the stranger who dwells among you. ” [Exodus 12:49]

The possibility of a fair market where all loans have affordable payments, reasonable prices and strong consumer protections is already a reality in other states. It’s a goal that religious leaders in Virginia have long championed, and the time is right.

The Virginia Interfaith Center for Public Policy and the Virginia Poverty Law Center are working with partners and lawmakers to take action to protect consumers rather than predatory lenders. Bills imposing comprehensive predatory lending reforms were introduced by Senator Mamie Locke (SB421) and delegate Lamont Bagby (HB789) and move towards the passage.

This legislation will finally solve the problem and put money in the pockets of Virginia families who live paycheck to paycheck. Religious communities across the state are mobilizing to make sure they do.

Scripture, respected and honored by all religious traditions, demands: “Justice, justice you will pursue [Deuteronomy 16:20]. “The time is right. The Virginia General Assembly is the place.

Rabbi Gary Creditor is a board member of the Virginia Interfaith Center for Public Policy and Rabbi Emeritus of Temple Beth-El in Richmond. ([email protected]).

[ad_2]

]]>
https://rigelgroupllc.com/payday-loans-and-car-titles-need-reform/feed/ 0
The Dangerous Truth About Bad Credit Auto Title Loans https://rigelgroupllc.com/the-dangerous-truth-about-bad-credit-auto-title-loans/ Thu, 11 Oct 2018 07:00:00 +0000 https://rigelgroupllc.com/the-dangerous-truth-about-bad-credit-auto-title-loans/ If you have a free and clear car, but need cash fast, you might find yourself turning to a title loan. It could be the first step down a slippery slope – one you should avoid. Here we discuss how dangerous these loans are and why. How Securities Lending Works Auto title loans are a […]]]>

If you have a free and clear car, but need cash fast, you might find yourself turning to a title loan. It could be the first step down a slippery slope – one you should avoid. Here we discuss how dangerous these loans are and why.

How Securities Lending Works

Auto title loans are a type of secured loan that uses the title of your vehicle as collateral. This means that if you fail to repay the loan as agreed, the lender has the right to repossess your car. These loans typically range between $100 and $1,000, and you must repay them either within 30 days in one installment or in installments, usually with renewals ranging from three to six months.

According to a 2016 Consumer Finance Protection Bureau study, one in five borrowers have their vehicle repossessed as a result of these loans. Also, more often than not, borrowers cannot afford to repay their loans in one installment, so they end up renewing their loan seven or more times in a row, leaving them trapped in a cycle of debt that can last. the longest. a year or more.

Predatory loans

Automotive title loans, as well as payday loans and pawnbrokers, are generally considered predatory types of lending. Due to the incredibly high interest rates that come with title loans – an average APR on an auto title loan is 300% – people often struggle to pay off their loan in full on time.

With a typical interest rate of 25% per month, a $1,000 loan costs you $1,250 to repay. When a consumer cannot meet this payment within 30 days, lenders usually allow you to “rollover” your loan. This is where people get trapped in the cycle of debt. If you pay $250 and renew your original loan amount, which added fees and interest, you still owe $1,250 or more in 30 days.

There are other factors that make these loans unsafe, such as add-ons, which can increase the cost. Add-ons like roadside assistance, credit report fees, and origination fees not only increase the cost of a title loan, but may be required instead of optional. Knowing this, if you absolutely must obtain a title loan, it is a very good idea to shop around before signing any documents.

Car title lenders are required by the Truth in Lending Act to give you the full loan terms in writing. You should also make sure you know your credit score and what’s on your credit reports, and have comprehensive auto insurance before you sign up for an auto title loan.

Before getting an auto title loan for bad credit…

You want to make sure that you consider all of your options before considering a title loan. Not only can your vehicle be repossessed, but there are also a number of other consequences.

For example, your car insurance company may decide to pay the lien holder directly if you are involved in an accident and your car is deemed a total loss. In some states, title lending companies are required to pay you the difference between the value of the vehicle and the loan balance. But, in other states, they are allowed to retain full payment from your insurance company.

Plus, since you’re giving your title as collateral, if anything happens to your car, like theft or a total, you won’t be able to be financed for a replacement until you pay off your title loan – especially if have you bad credit.

Before you sign on the dotted line for a high-interest car loan, consider these alternatives if you have bad credit:

  • Contact your creditors to tell them about your situation and see if they can work with you
  • Ask friends or family members for money to help you
  • Take out a small personal loan from a credit union or a bank
  • Learn about organizations that help with living expenses
  • Consider a cash advance on a credit card or ask your employer
  • Borrow from your 401(k) retirement account

As you can see, there are other options to consider. However, some of them also carry higher than average interest rates, such as credit card cash advances. Other options, such as borrowing from your retirement account or 401(k), should be done with extreme caution and consideration.

As we see

You should always be aware of all the options available to you if you need financial assistance. But, you also need to be careful because not all lender options are as good as they seem. Here has Auto Express Credit, we recommend that you always do your research before embarking on any type of auto loan, especially an auto title loan.

]]>
Could Car Title Loans Ruin Your Finances? https://rigelgroupllc.com/could-car-title-loans-ruin-your-finances/ Fri, 20 Oct 2017 10:18:38 +0000 https://rigelgroupllc.com/could-car-title-loans-ruin-your-finances/ One in five people aged 45 to 64 with an income of less than $50,000 used a vehicle for a short-term loan. And about a third of people age 65 and older have received car title loans. “The reason almost everyone gets these loans is normally to pay an immediate expense,” like a gas or […]]]>


One in five people aged 45 to 64 with an income of less than $50,000 used a vehicle for a short-term loan. And about a third of people age 65 and older have received car title loans.

“The reason almost everyone gets these loans is normally to pay an immediate expense,” like a gas or electric bill or a credit card bill that’s due, Speer says.

But the average person who borrows $1,000 from a title lending company usually ends up paying back about $3,000 to $4,000, he says.

So while the car title loan might help pay the original bill, “now your condition is much worse,” Speer says. “Overall it’s going to end up being an even bigger crisis and your situation is going to be much worse.”

Repeat messages left with the American Association of Responsible Auto Lenders, an industry trade group, were not returned. However, Pat Crowley, spokesperson for the Ohio Consumer Lenders Association, which represents incumbent lenders in that state, says the loans are “very affordable” compared to alternatives. “We’re fully regulated. We’re very transparent about the fees we charge, and our fee structure is very clear,” Crowley says.

“We believe auto title loans are actually cheaper than other types of unsecured loans,” he says.

Here’s how car title loans work

When you get a title loan, it’s a short-term loan – usually just one month – that you secure with the title to your vehicle. Although the majority of title lenders require you to own your car, some do not. Either way, the lender puts a lien on your car. When you repay the loan, the lien is removed and you get your title back. Sounds pretty easy, right? Generally speaking, it is. Even retirees can get car title loans, as long as they have valid photo ID and proof of vehicle ownership. In many states there is not even a credit check.

The amount of the loan is based on the appraised value of the vehicle, and it is common for consumers to be able to borrow between 30 and 50% of the value of their car.

]]>
Why automatic title loans are a bad idea https://rigelgroupllc.com/why-automatic-title-loans-are-a-bad-idea/ Fri, 25 Aug 2017 07:00:00 +0000 https://rigelgroupllc.com/why-automatic-title-loans-are-a-bad-idea/ If you’re strapped for cash and own your car freely, an auto title loan might seem like a great way to get some quick cash when you need it. But auto title loans are among the most expensive types of credit you can get, along with payday loans and pawnbrokers. All of these loans fall […]]]>

If you’re strapped for cash and own your car freely, an auto title loan might seem like a great way to get some quick cash when you need it. But auto title loans are among the most expensive types of credit you can get, along with payday loans and pawnbrokers. All of these loans fall into the category of predatory lending: they target consumers who desperately need money and are therefore willing to pay ridiculously high prices for it.

How title loans work

Auto title loans use your car as collateral. Collateral is property that is used to secure a loan – in other words, it insures the lender against default. If the borrower fails to repay the loan on time, the lender has the right to take any property listed as security for the loan. It’s true: if you don’t pay off your car loan, the lender can take your car. Some auto title lenders will even ask you to install a GPS device in your car so that if they decide to repossess the vehicle, they can find you wherever you go.

Image source: Getty Images.

The cost of auto title loans

Auto loan lenders charge an average of 25% per month interest on the loan. That’s an annual percentage rate (APR) of 300%! Even credit cards only charge an average APR of 15.59%, and these are the most expensive traditional credit options. And you can expect an auto title loan to include a variety of fees in addition to exorbitant interest. In other words, if you were to take out a $1,000 auto title loan and pay it off 30 days later, you would owe the lender $1,250, plus who knows how much in fees.

Alternatives to title loans

Most consumers have much better options than an auto title loan, even if their credit score is low. If you need money because you’re behind on paying your bills, contact your creditors and see if you can negotiate a debt reduction or at least a longer repayment period. If you’re really in over your head, a credit counseling service can help you put a debt repayment plan in place. Other options for getting some quick cash include a credit card cash advance (probably very expensive, but not as bad as a car title loan), a loan from a friend or family member, or a small loan or line of credit from your local bank. Even borrowing money from your 401(k) might be better than taking out an auto title loan.

Once you’ve gotten out of your current financial crisis, make it a priority to set up a emergency savings fund to protect you from similar situations in the future.

Get a title loan

If you decide you really have no choice but to get an auto title loan, shop around with different title lenders to get the best deal possible. Carefully review the terms of the loan and opt out of any “extra” features such as roadside assistance. If the lender insists you take such add-ons, find another lender. Find out about all the different fees listed on the loan documentation (there will likely be several) and try to negotiate to have these fees waived or at least reduced. If you push the lender hard enough, they may be willing to bend these costs a bit. Finally, avoid “rollover” offers. Title lenders will often allow you to pay only the interest on your loan and defer the principal to a new loan, but this will lock you into a never-ending cycle of escalating fees and interest.

]]>
Title Loans vs Payday Loans: What’s the Difference? https://rigelgroupllc.com/title-loans-vs-payday-loans-whats-the-difference/ Sat, 25 Mar 2017 11:49:56 +0000 https://rigelgroupllc.com/title-loans-vs-payday-loans-whats-the-difference/ Title Loans vs. Payday Loans: An Overview Asking if title loans or payday loans are better is like asking which disease is better to get in the winter. Both loan products feature usurious interest rates, unfavorable terms and potentially aggressive collection tactics. A significant difference between a title loan and a payday loan is how […]]]>

Title Loans vs. Payday Loans: An Overview

Asking if title loans or payday loans are better is like asking which disease is better to get in the winter. Both loan products feature usurious interest rates, unfavorable terms and potentially aggressive collection tactics. A significant difference between a title loan and a payday loan is how you can borrow and the interest rates on each loan.

Title loans generally offer lower interest rates – for example, an annual percentage rate (APR) of 300% versus 400% for payday loans, if you call it a deal – but also impose higher penalties. heavy in the event of non-payment, because the lender can take possession of your vehicle.

Title lenders typically allow you to borrow up to 50% of the car’s value, and often up to $5,500, but some lenders will go higher depending on the vehicle and allow borrowers to take out a loan of $10,000 or more.Inasmuch asPayday lenders usually allow you to borrow a few hundred dollars.

Key points to remember

  • Payday loans and title loans are two high-risk loans with very little return other than quick access to cash.
  • Underpaid people often have to rely on payday loans to pay for necessities between paychecks.
  • Title loans are risky because you can lose your vehicle, which serves as collateral for the loan.
  • Because of the collateral, title loans allow you to borrow a lot more money than a payday loan.
  • Both loans should be used as a last resort, and even then, with caution due to their high fees and exorbitant interest rates.

payday loan

Payday lenders offer short-term cash loans in exchange for a post-dated check, usually dated your next payday. The amount of the check includes the total of the loan and finance charges. For example, you write a check for $115 to receive a loan of $100. Given a loan term of two weeks, which is relatively standard, the $15 finance charge equates to an APR of nearly 400%, and that’s assuming you repay the loan on time.Inasmuch asInasmuch as

If your post-dated check fails to clear the bank and you don’t make other arrangements to pay by the due date, the lender defers your loan to a later two-week period.Inasmuch asThe lender will also add another finance charge and usually assess an additional late fee or penalty. Before long, you could end up paying several multiples of your original loan amount.

Many payday lenders prey on low-income people and those in desperate need of money, and often their businesses are located in undesirable locations, but not always. You can circumvent the need to go there by searching for a lender online, but that exposes you to another set of risks. Some payday lender websites are nothing more than scams to extract sensitive personal information.

In some states, laws have been enacted to require payday lenders to offer extended repayment plans to those who experience financial hardship and cannot repay their loans.Inasmuch asThese state-sanctioned extended repayment plans mean you only have to pay what you owe and don’t have to borrow again, keeping the cycle of debt and fees in check. Classes.Inasmuch asInasmuch as

The only silver lining of a payday loan is that it is unsecured debt, which means the lender has no collateral to seize if you are unable to repay the loan.

Title loan

Title lenders offer short-term loans while holding the title to your vehicle as collateral. The lender assesses the value of the vehicle and offers to lend up to a certain percentage of that value, usually 25-50%. Title loan balances can be much larger than payday loan balances, in some cases as high as $10,000. The typical duration of a title loan is 30 days, with average interest charges of around 25%. This means that a standard title loan APR is 300%.Inasmuch asInasmuch as

Like payday lenders, title lenders impose the heaviest expense when you don’t repay the loan on time. If you’re lucky, the lender may offer to extend the loan for another 30 days, charging new finance charges and usually a penalty on top of that.Inasmuch asIf you’re not so lucky, the lender may repossess your car and sell it to pay off your loan.

Obtaining a title loan usually requires you to go in person since the lender must appraise your vehicle. Mobile title lenders exist but almost always charge extra to come to you.

Because a payday loan is unsecured, lenders have been known to use aggressive methods to collect late payments. These tactics include incessant phone calls, intimidating letters and threats of litigation.

Special Considerations

Ranking one or the other as “best” is fraught with pitfalls, as payday loans and title loans tend to make a precarious financial situation worse. Payday loans pose less risk of losing personal property, while title loans have slightly lower interest rates (although still very high) and allow for larger loan amounts.

If you face an unexpected expense and are low on funds, the best ways to raise money are to sell items you no longer need, ask your employer for an advance on your next paycheck, or, if possible, to use a credit card.

While credit cards are frowned upon for having high interest rates, their rates are only a tiny fraction of what you pay for a payday loan or title loan. Also, most credit cards don’t charge interest if you pay them off within 30 days.

]]>