This can happen even to student borrowers who have good payment records. These students could suddenly be faced with a demand from the private lender to pay off the loan in full early, risking default if they don’t.
The CFPB’s new study also shows that the majority of all payday loans are made to borrowers who renew their loans so many times that they end up paying more in fees than the amount of money they originally borrowed.
It’s bad enough that consumers who have fallen on hard times get threatened by debt collectors, but many get hounded for debts they never owed in the first place. That’s according to the Consumer Financial Protection Bureau, which has issued a report on the more than 30,000 consumer complaints it has received about the debt collection market.
A regularly available credit score may prompt more Americans to review their credit standing and pull their free annual credit report at www.annualcreditreport.com. Fewer than one in five Americans check their credit report in any given year.
The GAO recommends requiring financial firms providing debit and prepaid card services to colleges to file their agreements for public review. “The financial marketplace functions best when consumers are fully informed and have unbiased information,” the GAO said.
The Consumer Financial Protection Bureau has issued guidance to avoid getting hit with high interest charges at the end of introductory periods. The credit cards being offered don’t differ that much from the deferred interest plans offered by furniture sellers on TV ads.
The report to retailers from the FBI detailed the risks from “memory-parsing” malware that infects point-of-sale (POS) systems, which include cash registers and credit-card swiping machines at checkout aisles.
There was a 10.41 percent average increase throughout the country of possible fraudulent activity in loan applications between the second and third quarters of 2013.
Most borrowers may not realize that the new year has ushered in a new era of so-called “qualified mortgages”, which carry new rules to protect both consumers and the lending industry from creating another subprime meltdown.
Ally Financial will pay $80 million in damages for markup policies on auto loans that have resulted in illegal discrimination against over 235,000 African-American, Hispanic, and Asian and Pacific Islander borrowers, federal officials said Friday.