Tag Archives: Predatory Lending

Debt settlement programs are misleading

by Charlene Crowell, Houston Forward Times

The Center for Responsible Lending finds that debt settlement is a risky strategy that can leave consumers more financially vulnerable and still laden with debt years after they enroll in such programs. Many creditors simply refuse to deal with debt settlement companies. Available data suggests that at least two-thirds of debts must be settled in order to achieve a net positive outcome from debt settlement. Even more debts must be settled for the consumer to achieve real savings if they end up being liable for taxes on the debt reduction. Read More ›

Nasty surprise for some student loan borrowers

by Herb Weisbaum, CNBC

Students who take out private loans to pay for college could face a nasty surprise if their co-signer dies or files for bankruptcy: The lender may suddenly demand the loan be paid in full—or even worse, put that loan in default—even though all payments are being made on time. The Consumer Financial Protection Bureau issued a consumer advisory on Tuesday, warning borrowers that these “auto-default” clauses may be in their loan agreements and serious financial consequences could result. Read More ›

Friendly sales pitch can’t hide payday loans’ unfriendly rates

by David Lazarus, Los Angeles Times

Welcome to the new-and-not-so-improved world of payday lending, which has adopted more sophisticated sales pitches and branding to lure unwary consumers into loans that can trap them in endless cycles of debt. Read More ›

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