August 29th, 2014
Earlier this month, Manhattan District Attorney Cyrus R. Vance, Jr. brought charges against a Tennessee-based businessman and the 12 companies he allegedly created to offer payday loans to New Yorkers at illegally high rates.
With one website, MyCashNow.com, based in the West Indies and others incorporated in various states, Carey Vaughn Brown is accused of trying to escape legal regulations and usury laws. New York usury laws cap loan interest rates at 25 percent, but prosecutors say Brown’s companies extended loans with rates that ranged from 350 to 650 percent.
Brown is also accused of disguising the fact that that his companies would oversee an entire loan process. For example, a borrower would apply for a loan on one website Brown owned, their information would be transferred to another company that extended the loan and a third company would collect payments. By managing all of the companies involved in the loan lifecycle, prosecutors say that Brown could profit off of expensive loans in states that banned them. Chief operating officer Ronald Beaver and legal counsel Joanna Temple have also both been indicted.
Prosecutors estimate that one company in Brown’s extensive payday loan operation made $50 million off of loans given to New York residents in 2012.
August 26th, 2014
More Americans than ever are unsure that life will be better for their children’s generation than it is for theirs, according to a new poll conducted by the Wall Street Journal with NBC News.
August 25th, 2014
According to a recent Gallup poll, students with $50,000 or more in student debt fall short of those with no debt in three key areas of well-being: financial security, physical health and sense of purpose. The study surveyed more than 11,000 people who graduated from college between 1990 and 2014 to ask whether they felt they had purpose to their lives, supportive relationships, financial security, a sense of community and physical health.
August 22nd, 2014
The U.S. Department of Education recently proposed changes to the PLUS loan program that would relax credit standards for potential borrowers.
August 20th, 2014
According to the Federal Reserve, the economic recovery may not be going as smoothly as some might insist. A newly released study indicates that, as of late 2013, 68 percent of American households hadn’t seen significant financial improvement since 2008. Overall, in fact, there were more households that reported further deterioration than those that reported improvement.
August 19th, 2014
A new study by the Consumer Financial Protection Bureau found that opting in to debit card overdraft services costs the average consumer around $250 per year in fees. While the ability to charge your account into the red may be seen as a temporary convenience for those who are short on cash and need it now, the practice of overdrawing your checking account can be costly and inefficient.
August 18th, 2014
Restaurant chain P.F. Chang’s reported that card data may have been stolen from 33 restaurants. Read more about the protective measures you can take.
August 13th, 2014
A recent study by the Urban Institute came back with some sobering findings, including the fact that over one in three American adults have at least one account in collections. In addition to finding who has accounts in collections, the study sought to establish a geographic pattern of where delinquent debts and accounts in collections are most prevalent.
August 12th, 2014
Virginia-based retailer USA Discounters is under fire. In a report published by ProPublica and the Washington Post, ProPublica alleges that the company uses unfair debt collection tactics against service members. USA Discounters sells merchandise on credit to service members and then sues them in Virginia courts if they fall behind on their payments.