Consumer advocates fight predatory lending

TIME TO BE DETERMINED.. DUE TO SERIOUS DAMAGE. ALL NEW THIS MORNING… THE RISK… OF FINANCING. SOMETIMES A PAYMENT PLAN… COULD CHARGE YOU DOUBLE… EVEN *TRIPLE THE PRICE OF EVERYTHING YOU BUY. CONSUMER REPORTER ASA AARONS SMITH JOINS US IN STUDIO… WITH WHAT TO WATCH. LIKE A? YEAH FRANK… THE PROBLEM… IS INTEREST RATES. A LOT OF PEOPLE THINK THERE ARE *LIMITS ON THESE THINGS…BUT SOME – *EXHAUST FAULTS…LET COMPANIES CHARGE UP TO 189 PERCENT INTEREST. (ASA/ATC) DON’T BE TOO QUICK TO FINANCE FURNITURE, A CAR REPAIR OR EVEN A PUPPY – OR ACCEPT WHAT SEEMS TO BE A FREE 90-DAY PAYMENT PLAN. FIRST, READ THE SMALL FEATURES. YOU COULD BE LURED BY AN EXPENSIVE LOAN WITH SHOCKING INTEREST RATES UP TO 189%. YOUR MONTHLY PAYMENTS WILL BE MOSTLY INTEREST, GIVING YOU LONG-TERM, HIGH-COST DEBT. RACHEL GITTLEMAN OF THE NON-PROFIT CONSUMER FEDERATION OF AMERICA SAYS CONSUMERS ARE FALLING INTO A DEBT TRAP – A SITUATION IN WHICH DEBT IS GROWING OUT OF LIMITS. (FULL) RACHEL GITTLEMAN, CONSUMER FEDERATION OF AMERICA (00:06- 00:17) “REQUESTS ARE OFTEN TAKEN OVER THE PHONE OR MUST BE TAKEN ON A SMARTPHONE OR TABLET, AND CONSUMERS ARE NOT OFFERED WRITE COPIES EVEN WHEN THEY ASK.” (ASA/ATC) GITTLEMAN SAYS CONSUMERS ARE SHOCKED WHEN THEY RECEIVE EMAIL COPIES OF THEIR AGREEMENTS, OFTEN MONTHS LATER. YOU WILL OFTEN FIND RETAILERS OFFERING THESE PREDATORY LOANS CLOSE TO MILITARY BASES, SO VETERANS, MILITARY PERSONNEL AND THEIR FAMILIES ARE COMMON VICTIMS OF THESE HIGH INTEREST RATES AND DECEPTIVE PRACTICES. MOST STATES LIMIT INTEREST ON TIME LOANS. BUT HIGH-FEE LENDERS NOW USE RENT-A-BANK SCHEMES WITH ABOUT SIX INDEPENDENT BANKS TO AVOID STATE INTEREST RATE LIMITS. (FULL) RACHEL GITTLEMAN, CONSUMER FEDERATION OF AMERICA (00:31- 00:44) “THIS NON-BANK LENDER IS SUBJECT TO STATE INTEREST SUMMARY. THIS BANK IS NOT. .. TO LAUNDER THEIR LOANS THROUGH.” (ASA/ATC) THE CONSUMER FEDERATION OF AMERICA IS PART OF STOP THE DEBTE TRAP, A COALITION OF MORE THAN 800 CIVIL RIGHTS, CONSUMERS, WORKERS, FAITH, VETERANS, PEOPLE ELDERLY AND COMMUNITY ORGANIZATIONS IN ALL 50 STATES THAT WORK TO STOP PREDATORY LOANS STOP THE DEBT TRAP SAYS MANY PREDATORY LOANS GO THROUGH A COMPANY CALLED EASYPAY FINANCE, WHICH WORKS IN TANDEM WITH UTAH-BASED TRANSPORTATION ALLIANCE BANK – OR TAB FOR COURT (FULL) RACHEL GITTLEMAN, CONSUMER FEDERATION OF AMERICA (01:00- 01:31) “EASYPAY, THIS LENDER, PARTNERS WITH LOCAL RETAIL LOANS TO OFFER THESE LOANS. OR YOU GET A PUPPY, AND YOU’RE STUCK IN A 189% APR LOAN.” WE EMAILED SEVERAL OFFICERS AT TRANSPORTATION ALLIANCE BANK. MISLEADING AND ABUSIVE, CONSIDER A CREDIT CARD OR PERSONAL LOAN INSTEAD AND AVOID ANY LOAN WITH AN INTEREST RATE ABOVE 36 PER CENT AND AS ALWAYS… READ THE TERMS AND CONDITIONS BEFORE SIGNING ANY LOAN AGREEMENT. YOU UNDERSTAND THEM AND GET A COPY OF THE AGREEMENT FOR YOUR RECORD

Ask Asa: Consumer advocates fight predatory lending

Thinking of financing an expensive car repair or even a designer pup? Consumer Reporter Asa Aarons Smith is here with some important warnings about predatory lending.

Don’t be too quick to finance furniture, a car repair, or even a puppy — or agree to what appears to be a free 90-day payment plan. First, read the fine print. You might be lured into an expensive loan with shocking interest rates of up to 189%. Your monthly payments will mostly go to interest, burdening you with long-term, high-cost debt. Rachel Gittleman of the nonprofit Consumer Federation of America says consumers fall into the debt trap — a situation where debt spirals out of control. “Requests are often taken over the phone or have to be taken on a smartphone or tablet, and consumers don’t receive written copies even when they ask for it,” she said. Gittleman says consumers are shocked when they review emailed copies of their agreements. , often sent months later. You will often find retailers offering these predatory loans near military bases, so veterans, service members and their families are common victims of these high interest rates and deceptive practices. Most states limit interest on installment loans. But high-cost lenders are now using bank-lease schemes with about six rogue banks to evade state interest rate limits. the bank lender finds a rogue bank to launder their loans,” Gittleman said. of 50 states working to stop predatory lending. Stop the Debt Trap says many predatory loans go through a company called EasyPay Finance, which works in tandem with Utah-based Transportation Alliance Bank, or TAB for short. “EasyPay, this lender, partners with outlets to offer these loans. (side with) So you go get your automatic transmission fixed, or you get a pup, and you’re stuck in an 189% APR loan “, she said. .We emailed several Transportation Alliance Bank executives. But none responded to our request for comment. To avoid deceptive and abusive lending practices, consider a credit card or personal loan instead, and avoid any loan with an interest rate higher than 36%. Always – always – read the terms before signing a loan agreement. Make sure you understand them and get a copy of the agreement for your records.

Don’t be too quick to finance furniture, a car repair, or even a puppy — or agree to what appears to be a free 90-day payment plan. First, read the fine print. You might be lured into an expensive loan with shocking interest rates of up to 189%.

Your monthly payments will mostly go to interest, burdening you with long-term, high-cost debt. Rachel Gittleman of the nonprofit Consumer Federation of America says consumers fall into the debt trap — a situation where debt spirals out of control.

“Requests are often taken over the phone or have to be taken on a smartphone or tablet, and consumers are not offered written copies even when they ask for them,” she said.

Gittleman says consumers are shocked when they review emailed copies of their agreements, often sent months later. You will often find retailers offering these predatory loans near military bases, so veterans, service members and their families are common victims of these high interest rates and deceptive practices.

Most states limit interest on installment loans. But high-cost lenders are now using bank-lease schemes with about six rogue banks to evade state interest rate limits.

“This non-bank lender is subject to state interest summaries, and this bank is not. And so the non-bank lender finds a rogue bank to launder their loans,” Gittleman said.

The Consumer Federation of America is part of Stop the Debt Trap, a coalition of more than 800 civil rights advocates, consumers, workers, faith-based, veterans, seniors, and community organizations from all 50 states working to end lending predators.

Stop the Debt Trap says many predatory loans go through a company called EasyPay Finance, which works in tandem with Utah-based Transportation Alliance Bank, or TAB for short.

“EasyPay, this lender, partners with outlets to offer these loans. (side with) So you go get your automatic transmission fixed, or you get a pup, and you’re stuck in an 189% APR loan “, she said. .

We emailed several Transportation Alliance Bank executives. But none responded to our request for comment.

To avoid deceptive and abusive lending practices, consider a credit card or personal loan instead, and avoid any loan with an interest rate higher than 36%. Always – always – read the terms before signing a loan agreement. Make sure you understand them and get a copy of the agreement for your records.

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