Contact a claims company for mis-sold PPI
Posted on August 16th, 2010
Recently we have stumbled across a website that deals with ppi claims for people in the United Kingdom who have taken out a credit card or a loan in the last few years. PPI is a type of insurance policy that is aimed at these people and its sole purpose is to protect them in the event that they cannot earn an income because they have had an accident or developed an illness.
However, with this type of insurance policy there are problems. The main problem that has been reported frequently is that payment protection insurance is often mis sold. Read more…
1.2million Turn To Payday Loans
Posted on August 15th, 2010
More than one million people are talking out so-called “payday” loans to help them make ends meet, to the concern of debt support groups.
The number of people taking out short-term loans has quadrupled since 1996, with more than £1.2bn being borrowed last year.
Payday loans are usually small loans, typically no more than £300-500, that are targeted at those people who need a quick cash loan for a short-term period, usually to cover exceptional expenses close to pay day.
But the loans have been criticised by some groups, with many short-term loans being charged at interest rates in excess of 2,000% APR, making them an extremely expensive form of borrowing as many short-term loans become “rolled over” when the borrower cannot repay on time.
”Payday loans are a valid form of credit and it’s much better for people to take one out rather than go to a loan shark,” said Sarah Brooks, head of financial services at Consumer Focus.
“But we do think there needs to be a limit on the number of loans people take out and how many loans they are able to roll over.”
However, the pay day loan industry says when managed properly, many people find this type of lending easy to understand and less risky.
”There is a reluctance among many consumers to take on long term loans from traditional lenders, because they feel their financial situation could change,” said John Lamidy from the Consumer Finance Association.
“But they find that the short term credit offered by the pay day loans industry does meet their needs.
”We are working with Consumer Focus to find out how serious the problems they identify are and whether they affect lots of people or just a few,” he added.
New Debt Relief Company Rules Announced by Federal Trade Commission
Posted on August 14th, 2010
So many consumers have complained about debt settlement companies that the federal government has finally taken some action.
Yesterday, the Federal Trade Commission announced a new restriction on debt settlement companies which is designed to address the growing nationwide problem of so-called debt relief companies making outlandish promises of success, but ultimately failing to do anything.
Up-Front Fees Charged by Debt Settlement Companies to be Prohibited
The new rules, which will take effect in the fall, will prevent debt settlement companies from charging any up-front fees before they settle or reduce a customer’s credit card debt.
I have reported previously that I regularly meet with clients who were promised the moon by debt settlement companies; yet these companies ripped them off after charging large up-front fees, failing to achieve settlements, and leaving the consumers in a worse position than they were to begin with. I
Payday Loan Debt Help Lawyer Applauds FTC Complaint
Posted on August 13th, 2010
Offering payday loan debt help is a big part of my work as a debt consolidation lawyer providing bankruptcy services in Indiana, and I was very glad to read about a Federal Trade Commission crackdown on one payday loan operation (Consumer Bankruptcy News, May 6, 2010).
When people are undergoing financial troubles, one of their biggest concerns, I’ve found, is the possibility their wages will be garnished. Under the new bankruptcy laws of Indiana, as is true under federal law, employers must obey court orders to garnish an employee’s wages. The only time a creditor can garnish wages without having a court order is if the creditor is a federal agency.
All of the Anderson, Bloomington, Indianapolis, and Columbus bankruptcy lawyers who work in the Mark Zuckerberg bankruptcy law offices, like myself, are used to helping clients prevent, or at least put a halt to, wage garnishment through bankruptcy’s automatic stay. The automatic stay is a court order that goes into effect as soon as someone files personal bankruptcy in Indiana.
The reason the FTC has charged at least a couple of online payday loan operations with illegally attempting to garnish debtors’ wages is that they did not obtain court orders. The lenders were essentially passing themselves off as having the same collection rights as the government.
After almost twenty five years as an Indiana lawyer for bankruptcy, I’ve seen my share of abusive payday loan practices. As a special alert to all my Indiana bankruptcy clients and readers, the payday loan companies named in the FTC suit are Eastbrook, LLC (also doing business as Ecash and GeteCash) and LoanPoint, LLC.
In writing about bankruptcy matters over the past three years, I’ve made no secret of the fact that I do not like payday lending. Whil