Division of Finance and Corporate Securities 1 Financial Predatory Practices Diane Childs Financial Information Outreach Coordinator.

Slides:

Advertisements

Similar presentations

Chapter 27 Your Credit and the Law pp Learning Objectives 1.Explain 1.Explain how government protects credit rights. 2. Name 2. Name federal.

Advertisements

Credit Buy Now, Pay Later. Credit Someone is willing to loan you money (principal) in exchange for your promise to pay it back, usually with interest.

Laws Protecting Debtors/Creditors and Bankruptcy Unit C Basic Business Law Objective 6.02.

The Fair Trading Act and Credit 2011 Service Alberta.

Introduction to Business & marketing

PERSONAL FINANCE/BANKING CREDIT, BUDGET, AND CHECKING ACCOUNTS Chapters 25, 26, 28, 29.

Chapter 7: Planned Borrowing. Objectives Discuss the elements of the planned use of credit. Establish your own debt limit. Understand the language of.

Understanding Loans and Borrowing Money. Development of Credit  In the Past  Credit Today.

Facts About Lending The Cost of Credit. Consumer Credit Transactions Consumer Credit Sales – Finance the purchase of goods or services (autos, furniture,

In Unit 4 we will see the importance of using and managing credit effectively in the financial planning process.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

CONSUMER CREDIT LEGISLATION Carl Johnson Financial Literacy Jenks High School.

HOW CREDIT CARDS WORK What you need to know about credit cards- including what credit cards companies can and can’t do, and what information they have.

Borrower Beware 1. Why Borrow? 2 Consumer Debt for 2012 Averages per US Household: O Average credit card debt: $15,204 O Average mortgage debt: $148,818.

Credit.  Credit (from Latin credere translation. "to believe") is the trust which allows one party to provide resources to another party where that second.

Building: Knowledge, Security, Confidence Borrowing Basics FDIC Money Smart for Young Adults.

Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.

2 pt 3 pt 4 pt 5pt 1 pt 2 pt 3 pt 4 pt 5 pt 1 pt 2pt 3 pt 4pt 5 pt 1pt 2pt 3 pt 4 pt 5 pt 1 pt 2 pt 3 pt 4pt 5 pt 1pt Short Answers VocabCredit Terms True.

Credit Card Review. Some credit card companies charge ________ fees for the use of their card.

Chapter 4: Going into Debt

Payday Loans & Credit Cards CENTS. What is a Payday loan?  A Payday loan is a small loan, also known as a “cash advance.” These loans typically become.

Pay Day Loans. Buyer Beware….. “Get cash until payday!” “You can get $50 to $500 within 15 minutes!” “Get cash….$100 or more….fast!”

Payday Lending Take Charge of Your Finances.

PREDATORY LENDING Be a SMART Consumer!. WHAT ARE MY RIGHTS AS A CONSUMER? SAFETY SERVICE CONSUMER EDUCATION TO BE INFORMED TO BE HEARD TO CHOOSE.

PART 2: MANAGING YOUR MONEY Chapter 7 Using Consumer Loans: The Role of Planned Borrowing.

CreditUnitReview JEOPARDY Consumer credit The use of credit for personal or individual needs.

Economics. » Credit - the ability to obtain goods or services now while paying for them in the future » Interest - the price of using credit - that.

CREDIT: Day 2. Types of Credit Credit Cards Loans.

Going Into Debt $$$. Americans & Credit Credit allows people to own homes, improve their communities and purchase other items instead of waiting. Credit.

1.1 Debt, Interest & APR Check out the ‘simple interest explained’ video at © moneyskool.org 2015.

Credit Credit is a sum of money a person can use for a period of time before having to reimburse the lender.

Law in American Society Ms. Gikas.  Credit: buying goods or services or borrowing money in exchange for a promise to pay in the future  Creditors: people.

Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.

INTRODUCTION TO BUSINESS & MARKETING CREDIT. Objectives Compare the types of consumer credit Describe the advantages and disadvantages of using credit.

Buy Now Pay Later….  How to analyze the advantages & disadvantages of consumer credit  How to distinguish among various types of consumer credit  How.

To Your Credit 1. 2 Purpose To Your Credit will: Show you how to read a credit report. Help you build and repair your credit history.

Discuss the factors on which credit is granted and the cost of credit. G42.

Chapter 7 Choosing a Source of Credit: The Cost of Credit Alternatives.

 What are advantages of credit  What are disadvantages of credit.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

More facts about Credit PERSONAL FINANCE MRS. BULLOCK.

Building: Knowledge, Security, Confidence Borrowing Basics.

Credit Cards. Questions we will answer… What is credit? What does it cost to use credit? What are the advantages of using credit? Where can you get credit?

Going Into Debt Chapter 4. Americans and Credit Chapter 4, Section 1.

Back to Table of Contents pp Chapter 27 Your Credit and the Law.

1.4.2.G1 Credit Reports and Credit Scores Take Charge of Your Finances.

Chapter 4: Consumer Credit 4.2 Loans. What information do you need to know before taking out a loan? Brainstorm with your groups Make a list of 5 things.

UNIT FIVE. CREDIT: BUY NOW, PAY LATER. Coming soon to a mailbox near you: Credit Card offers.

CREDIT CARDS. Credit Cards When used and managed properly, credit cards offer:  convenience  a sense of security  the ability to build a good credit.

Using Credit Wisely Types of Credit Credit Card Allows user to charge amounts in different places Given a credit limit, or maximum amount you can.

1. Debt, Interest & Payments © moneyskool.org. People borrow money for all kinds of different reasons – to buy a house, go to university, start a business.

Chapter 27 Your Credit and the Law pp Learning Targets 1.Explain 1.Explain how government protects credit rights. 2. Name 2. Name federal laws.

Financing Mortgages, Notes and Foreclosure. Concept Mortgagor- borrower/debtor Mortgagee- secured creditor Writing required Debt Mortgage Note Filing.

Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.

Credit. credit is money loaned in exchange for your promise to pay it back later with interest. interest is a amount of money paid to use someone else’s.

CREDIT Personal Finance. Advantages of Credit  Improved Standard of Living:  Credit lets you purchase items now, instead of having to wait until you.

Credit Questions to Consider  What is credit?  Does credit cost?  What are the advantages of using credit?  What happens if I misuse credit?

© 2010 South-Western, Cengage Learning Chapter © 2010 South-Western, Cengage Learning Credit in America 16.1 Credit: What and Why 16.2Types and Sources.

Using Credit Wisely. Credit  Credit is a sum of money a person can use before having to reimburse the credit lender.  It allows a person to receive.

Personal Finance 7.02 Credit Ratings. CREDIT DEFINITIONS Credit Trust given to another person for future payment of a loan, credit card balance, etc.

Unit Four Good Debt, Bad Debt: Using Credit Wisely.

Chapter 17 Credit Records and Laws. Credit Records and Laws Establishing Good Credit Credit Records Creditworthiness Getting Started With Credit Credit.

Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.

Chapter 5. Financial Services Borrowing Short Term Regular Savings Money Market Accounts Long Term Certificates of Deposit U.S. Savings Bonds Investment.

Loans. Loan An amount of money borrowed and repaid with interest Interest – Money paid for the right to borrow money  Fixed rate – rate that stays the.

Types of Credit.

Credit Reports It is your responsibility to check your score and report any errors.

Avoid Predatory Lenders

Chapter 6 Review.

Presentation transcript:

Division of Finance and Corporate Securities 1 Financial Predatory Practices Diane Childs Financial Information Outreach Coordinator

Division of Finance and Corporate Securities 2 Our Programs  Debt Management  Lending – Payday & Consumer Finance  Financial Institutions  Pre Need  Money Transmitters  Securities  Pawnshops  Mortgage Lenders  Identity Theft

Division of Finance and Corporate Securities 3 What we do

Division of Finance and Corporate Securities 4 Submitting a complaint

Division of Finance and Corporate Securities 5 License or Registration Check and Verify

Division of Finance and Corporate Securities 6 Debt Management Companies Assist with: Debt Credit repair Loan modification Bankruptcy (how to) Financial education

Division of Finance and Corporate Securities 7 Allowable Fees Maximum counseling, agreement fee: $50 Maximum monthly fee: $65 7.5% charge = total amount of reduced debt (debt settlement, loan mods, short sale)

Division of Finance and Corporate Securities Loan Modifications 8 Similar fee structure Free Help: HUD-certified foreclosure counselors SAFENET 0

Division of Finance and Corporate Securities Red Flags Debt Management 9 Settling for "pennies on the dollar" No adverse affect on credit ratings Don’t pay creditors Upfront fees

Division of Finance and Corporate Securities 10 Red Flags Loan Modification Stop making mortgage payments Mortgage payment to hired company Ads, mailings similar to government Performs “forensic audit”

Division of Finance and Corporate Securities 11 Upfront fees Solicitations: , mail, phone or Internet pop-up ads Guarantees positive results Out-of-state attorneys (no registration needed) Combined Red Flags

Division of Finance and Corporate Securities 12 State of Oregon Licensed File Number, Notice Privileged and Confidential …tri-bureau credit report…owe combined total of $28,589 Call Now…eligibility expires Portland Office

Division of Finance and Corporate Securities 13 Actual rates charged 343% 950% 800% 2737% 90%

Division of Finance and Corporate Securities Legal Payday Loan Rates 14 36% annual percentage rate (APR)* One time origination fee No renewal fees Restrictions on additional loans *Interest, Fees – 154% if lender charges maximum rate, fees

Division of Finance and Corporate Securities Legal Consumer Loan Rates 15 36% annual percentage rate (APR) No origination fees No “bump up” to higher rate

Division of Finance and Corporate Securities 16 Predatory Tactics Get cash now! No credit check! Bad credit? No problem!

Division of Finance and Corporate Securities Identity Theft Tactics 17

Division of Finance and Corporate Securities 18 License Check and Verify

Division of Finance and Corporate Securities 19 Cease-and-Desist $17,500 penalty Stop collection activity No license Excessive interest rates: 89% - 342%

Division of Finance and Corporate Securities 20 Check License or Registration Know legal fees, charges, interest rates Contact us: Check and Verify

Division of Finance and Corporate Securities More Information