Consumer Predatory Lending

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A Wolf in Sheeps Clothing
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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

3

• In 2007, Payday loans cost American families
• 4,200,000,000
• Borrowers who receive 5 or more Payday loans

per year account for 90 of all payday loans

• Debt Trap

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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

6

• Credit cards have become one of the most common
  form of currency for millions of Americans.
• Between 1989 and 2001 credit card debt has
  increased three times from 238 billion to 692
  billion
• Between 1989 and 2006, credit card charges has
  increased 26 times from 69 billion to 1.8
  trillion.

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Purchase
1st Mortgage
Refinance
Cash out
2nd Mortgage
Home Equity Line of Credit
Credit Cards
Line of Credit cash advances
Auto Loans
Fixed Payments Fixed Terms
Consumer Loans
Store Charges, short term loans (unsecured)?
Utilities
Food
Discretionary Income
Emergencies
Prescription Medications
Personal
Entertainment
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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

9

• Advertised by most financial institutions as
  Bounce Protection
• Allows checking account to overdraw into the
  red
• Financial Institutions recover this negative
  balance with the very next deposit
• Many Financial Institutions deal high-dollar
  debits before lower dollar ones to increase the
  number of overdraft fees.
• Most Financial institutions include ATM and debt
  cards usage into this service

• Solutions Authorize overdrafts from
• Saving account
• Line of Credit

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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

11
Itemization of Amount Financed
1. Cash Price
2. Other Charges Imposed by Seller include
a. Vehicle Service Contract (Term)?
900 - 3,750
72 months
b. Dealer Transfer Service Charge
c. Other
500 - 900
150
GAP
Exterior Coating
300 - 600
80
Tire Monitoring Service
400 - 750
20
Tire Wheel Protection
500 - 1,100
?
Window Etching
350 - 800
20
LoJack
600 - 1,200
225
Alarm Systems
600 - 1,850
Included
8. Amount Financed
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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

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• Short term loan, usually no more than 30 days
• Car title is used to secure the loan
• Individuals with bad credit, low income are
  targets
• for Auto Title lenders
• High interest for short term loan, loan must be
  over 600.00 to charge higher interest rate
• Loan can roll over up to 6 times, interest builds
  at the high rate
• There is a one day right to cancel this loan

If you cant pay loan back they will repossess
your vehicle.
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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

16

• Tax Refund anticipation Loans are short-term
  cash advances against a customers anticipated
  income tax refund
• High interest rates, ranging from 40 to 700 APR
• Tax preparers and lenders strip about 1.57
  billion in fees each year from the earned-income
  tax credits paid by working parents

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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

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(No Transcript)
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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

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• Four types of information is included
• Identifying information such as name, current and
  previous addresses, telephone number, Social
  Security number, date of birth and current and
  previous employers.
• Credit information Specific information about
  each account
• Public record information
• Inquiries Names of those who obtained
  information about your credit history

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• The Fair Credit Reporting Act outlines how long
  information can be retained on your credit report
• Good credit can stay indefinitely
• Derogatory credit can only be reported seven
  years from the date that the account first became
  delinquent.
• Bankruptcy, Chapter 7, is reported for ten years.
  Credit included in a Chapter 7 will only be
  reported for seven years.
• Bankruptcy, Chapter 11 is reported for seven
  years.

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• A credit score is a number lenders use to help
  them decide If I give this person a loan or
  credit card, how likely is it I will get paid
  back on time?
• Predicts the risk that you will not be able to
  repay the debt as agreed.
• They are generated by statistical models using
  elements from your credit report.
• They are not stored as part of your credit
  history but are generated at the time a lender
  requests your credit report.

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• Simply dispute the information
• Online
• By writing the credit reporting company as
  instructed on your credit report
• Be specific with your dispute, simply stating
  that the item is wrong does not provide enough
  detail to help you resolve your dispute.

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Experian CBAPO Box 2002Allen, TX
75013www.experian.com1-888-397-3742 Equifax
Information ServicesPO Box 740241Atlanta, GA
30374www.equifax.com1-800-685-1111
TransUnion LLCConsumer Disclosure CenterPO Box
1000Chester, PA 19022www.tuc.com1-800-888-4213
Free Credit Report www.freecreditreport.com
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• Payday Loans
• Credit Cards
• Overdraft Fees
• Auto Purchase Financing
• Auto Title Loans
• Anticipation Loans
• Wrap Up Predatory Lending
• Credit Reporting
• Q A

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Q A