Consumer Overdraft Fees: Study by The CFPB Reveals Horrors

Banks and credit unions LOVE overdraft fees. Roughly 40% of the largest banks earn the majority of their profuits from NSF fees. For credit unions, it’s closer to 60%.

The CFPB produced a study of this topic. CFPB

A regulatory change that became effective in 2010 requires that you first have to opt in to a bank’s overdraft service before it can charge you an overdraft fee on a debit card purchase or ATM withdrawal. If a consumer doesn’t opt in to the service, which costs nothing until it kicks into action, their transaction can simply be refused because they don’t have enough money in the account.

This is a great strategy for avoiding NSF fees and having your checking account closed by the bank checking account “black list” at: Chexsystems.com

Checking account consumers who paid 10 plus overdraft or nonsufficient fund (NSF) fees a year and opted into a bank’s overdraft/NSF checking account service paid as $450 more in bank/credit union fees than those consumers who acted the same but did not sign up for NSF/overdraft coverage. “Those consumers made up 9 percent of the 40 million accounts the CFPB studied at a small number of large banks, and they paid 79 percent of the banks’ total overdraft and NSF fees.”

Need help getting out of your payday loan? Can’t get a bank account because you’re on the “Bad Checking Account List?” Study my new book: “How to Get Out of Your Payday Loan.”

18 Ways to Kiss Your Payday Loan Lender Goodbye
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Payday Loan Help

Help with Payday Loan, Personal Loans and Car Title Loan Lenders.

There is a LOT of misinformation out there regarding what payday loan collection companies can and cannot do.

It’s CRITICAL YOU know the the basics when dealing with a payday loan, car title loan lender or installment loan collection agency.

The CFPB has assembled some abbreviated commentary regarding collections that is worthy of your time IF you’re one of those “unfortunates” vs “despicables” who is being hounded by payday loan companies.

Here’s the bottom line on what you should demand from one of these “loan sharks:”

What information does a debt collector have to give me about the debt?

A debt collector must tell you the name of the creditor, the amount owed, and that you can dispute the debt or seek verification of the debt.

Any debt collector who contacts you claiming you owe on a debt is required by law to tell you certain information about the debt. That information includes:

  • The name of the creditor
  • The amount owed
  • That you can dispute the debt
  • That if you don’t dispute the debt within 30 days the debt collector will assume the debt is valid
  • That if you dispute the debt in writing within 30 days the debt collector will provide verification of the debt
  • That if you request the name and address of the original creditor within 30 days, if different from the current creditor, the debt collector will provide you that information.

If the debt collector doesn’t provide the above information in the initial contact with you, the debt collector is required to send you a written notice including that information within five days of the initial contact.

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Payday Loan Debt Collector Help

Help with Payday Loan, Personal Loans and Car Title Loan Lenders.

There is a LOT of misinformation out there regarding what payday loan collection companies can and cannot do.

It’s CRITICAL YOU know the the basics when dealing with a payday loan, car title loan lender or installment loan collection agency.

The CFPB has assembled some abbreviated commentary regarding collections that is worthy of your time IF you’re one of those “unfortunates” vs “despicables” who is being hounded by payday loan companies.

Here’s the bottom line on what you should demand from one of these “loan sharks:”

What information does a debt collector have to give me about the debt?

A debt collector must tell you the name of the creditor, the amount owed, and that you can dispute the debt or seek verification of the debt.

Any debt collector who contacts you claiming you owe on a debt is required by law to tell you certain information about the debt. That information includes:

  • The name of the creditor
  • The amount owed
  • That you can dispute the debt
  • That if you don’t dispute the debt within 30 days the debt collector will assume the debt is valid
  • That if you dispute the debt in writing within 30 days the debt collector will provide verification of the debt
  • That if you request the name and address of the original creditor within 30 days, if different from the current creditor, the debt collector will provide you that information.

If the debt collector doesn’t provide the above information in the initial contact with you, the debt collector is required to send you a written notice including that information within five days of the initial contact.

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Payday Loan Refunds Due from Western Sky

It’s a bonanza for Georgia borrowers who did business with Western Sky and Cash Call.

Recall that Montel Williams was their spkesman.

Residents of Georgia who have received loans for Western Sky – Cash Call are entitled to participate in a $40,000,000 settlement the Georgia Attorney General Chris Carr made with the lender.

Oct. 31, 2016  the Georgia Supreme Court specified that out-of-state Internet lenders are subject to Georgia’s Payday Lending Act, which “prohibits a lender from making loans of $3,000 or less unless the lender is licensed to lend in Georgia or under federal law.”

Additionally, Georgia law imposes a maximum interest rate of interest rate on these loans of 10 percent. Western Sky consumated 8,000 loans with Georgia borrowers having typical interest rates from 140 percent to 340 percent APR’s and collected  $32+ million in interest and fees from Georgia consumers since 2010.

18 Ways to Kiss Your Payday Loan Lender Goodbye
Payday Loan Help

Western Sky must pay Georgia consumers $23,500,000 in refunds, stop all collection efforts and cancel all outstanding loans!

According to the Office of Attorney General Chris Carr, the settlement requires Western Sky and its affiliates to pay $23.5 million in consumer restitution, to cease all collections and to forgive all outstanding loans, which will provide an additional $17 million in loan relief to Georgia borrowers.

If you’re due a refund, additional details are here: GAWesternSkySettlement.com.

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Payday lender CashCall Inc. will repay $1,300 per customer on average

PHILADELPHIA — The U.S. government states sufficient facts to convict two men of using  indian tribes as fronts for dozens of illegal payday lending businesses that brought in more than $680 million in five years, a Pennsylvania federal judge ruled Dec. 29 after finding that neither tribal law nor sovereign immunity can shield the men from claims that they operated a racketeering conspiracy using a “rent-a-tribe” scheme (United States of America v. Charles M. Hallinan, et al., No. 2:16-cr-130, E.D. Pa.; 2016 U.S. Dist. LEXIS 179625).

CashCall Settles District Of Columbia Usury Suit For $2.9 Million

WASHINGTON, D.C. — Payday lender CashCall Inc. will repay customers more than $1.8 million — about $1,300 per customer on average — and forgive another $1 million in loan debt to settle claims by the District of Columbia that the company charged illegally high interest rates, according to a consent order filed Jan. 11 in the District of Columbia Superior Court, which previously rejected CashCall’s attempts to shield itself from lending laws through tribal sovereign immunity (District of Columbia v. CashCall Inc., et al., No. 2015 CA 006904 B, D.C. Super.). Tribal Courts

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