Fishing port gain – Newlyn Wed, 16 Nov 2022 17:20:14 +0000 en-US hourly 1 Fishing port gain – Newlyn 32 32 Markey joins team of Merkley, Bonamici and Jayapal to introduce legislation to protect consumers from predatory payday lending practices Wed, 16 Nov 2022 17:20:14 +0000

Washington (November 16, 2022) – Today Sen. Edward J. Markey (D-Mass.) joined Sen. Jeff Merkley (D-Ore.) and Reps. Suzanne Bonamici (D-OR-01) and Pramila Jayapal (D-WA- 07) presenting the Stopping Abuse and Fraud in Electronic Lending (SAFE) Act. The SAFE Loans Act will protect consumers from deceptive and predatory practices that rob working families of wealth by cracking down on some of the worst abuses stemming from the payday loan industry, particularly in online payday loans.

Under the leadership of the Trump administration, the Consumer Financial Protection Bureau (CFPB) has backtracked on nationwide rules protecting consumers from payday loan predators. Without strong CFPB protections at the national level, state laws protecting consumers will be all the more important.

Many states enacted tough laws to end predatory lending, but payday predators continued to use online lending to prey on consumers by hiding behind layers of anonymously registered websites and “money generators”. prospects” to evade law enforcement. Payday lenders with access to consumers’ bank accounts also issue money from loans on prepaid cards, linked to those accounts, which include high overdraft fees. When these cards are overdrawn, the payday lender can then access the consumer’s bank account and charge the overdraft fee, accumulating new debt. Even when the loan violates the law, predatory payday lenders can drain consumer bank accounts before individuals have a chance to enforce their rights.

The SAFE Loans Act of 2022 would enshrine in law three major principles to make the consumer credit market safer and more secure:

1. Make sure consumers have control of their own bank accounts

  • Ensure that a third party cannot take control of a consumer’s account through remotely created checks (RCC) – checks from a consumer’s bank account created by third parties. To avoid unauthorized RCCs, consumers could pre-authorize exactly who can create an RCC on their behalf, for example when traveling.
  • Allow consumers to cancel a direct debit on a small loan amount. This would prevent an Internet payday lender from stripping a checking account without a consumer being able to stop it.

2. Empower consumers to take back control of their money and increase transparency

  • Require all lenders, including banks, to follow state rules for small payday loans they can offer customers in a state. Many states currently have much stricter laws than the federal government. There is currently no federal cap on interest or any limit on the number of times a loan can be rolled over.
  • Increase transparency and create a better understanding of the small loan industry by requiring payday lenders to register with the Consumer Financial Protection Bureau.
  • Ban overdraft fees on prepaid cards issued by payday lenders who use them to access consumer funds and add to the already exorbitant costs of payday loans.
  • Require the CFPB to monitor all other charges associated with payday prepaid cards and enact a rule prohibiting any other abusive charges on prepaid cards.

3. Ban lead generators and anonymous payday loans

  • Some websites describe themselves as payday lenders, but are actually “lead generators” that collect applications and auction them off to payday lenders and others. This practice is prone to abuse and has led to fraudulent debt collections.
  • The SAFE Lending Act prohibits lead generators and anonymous websites in payday loans.

Joining Markey and Merkley in the Senate, the SAFE Loans Act is co-sponsored by Senators Tina Smith (D-MN), Cory Booker (D-NJ), Bernie Sanders (I-VT), Dick Durbin (D-IL), Tammy Duckworth (D-IL), Chris Van Hollen (D -MD), Dianne Feinstein (D-CA), Ron Wyden (D-OR), Richard Blumenthal (D-CT), Kirsten Gillibrand (D-NY) and Martin Heinrich (D-NM).

Joining Bonamici and Jayapal in the Chamber, the SAFE Loans Act is co-sponsored by Representatives Earl Blumenauer (D-OR-03), Jesús G. “Chuy” García (D-IL-04), Sylvia Garcia (D-TX-29), Sheila Jackson Lee (D-TX-18) , Eleanor Holmes Norton (D-DC-At Large) and Katie Porter (D-CA-45).

The SAFE Loans Act of 2022 is endorsed by Americans for Financial Reform, Center for Responsible Lending, Consumer Action, Consumer Federation of America, National Association of Consumer Advocates, National Consumer League, National Consumer Law Center, Public Citizen and UnidosUS.

The text of the final invoice can be found here.


Ohio lawmakers seek tough rules for ‘clean energy’ loans Sun, 13 Nov 2022 06:04:48 +0000

Editor’s Note: This story was first published by ProPublica.

Ohio lawmakers this fall consider adding protections for consumers to “clean energy” loan programs, addressing the concerns they may impose on vulnerable homeowners.

In testimony during the State House Committee hearings this year, some proponents of the bill have pointed out reporting by ProPublica as proof that Ohio should regulate loans tightly. This report showed that Property Assessed Clean Energy, or PACE, loans often left low-income borrowers in Missouri at risk of losing their homes.

Two Republican members of the State House from eastern Ohio are pursuing rules for PACE, though such a loan program has only been offered as part of a pilot program in Toledo. But lawmakers Bill Roemer, of Richfield, and Al Cutrona, of Canfield, said they wanted to make sure that, if companies try to introduce a statewide program in Ohio, they comply with stricter rules.

PACE provides financing for energy-efficient home improvements that borrowers repay in their property taxes. Unlike some other types of financing, default on a PACE loan can result in the sale of a home during a tax sale.

Missouri, California, and Florida are the only states with active statewide PACE residential programs. Last year, Ohio nearly become the fourthafter California-based Ygrene Energy Fund announced it would offer homeowner loans in partnership with the Toledo-Lucas County Port Authority.

But the program never started. Ygrene has since suspended all loans nationwide and last week agreed to settle a complaint by the federal government and the state of California that the company had harmed consumers through deceptive practices.

Roemer said in an interview that he co-sponsored the measure after speaking to a coalition which included mortgage lenders, real estate agents, and advocates for affordable housing and homelessness.

“You never really see all these people coming together on a bill,” he said. “I did my research and said, ‘This is a really bad program that takes advantage of the most vulnerable people. “”

The legislative session ends on December 31, leaving little time to pass the bill.

“It’s going to take a lot of work,” Roemer said, “but I think it’s very important that we do it.”

Ben Holbrook, a Cutrona aide, said that after Ygrene’s withdrawal Bill was “less reactive and more proactive”.

ProPublica found that state and local authorities in Missouri exercised little control over the two entities that operated clean energy loan programs in that state. Ygrene and the Missouri Clean Energy District charged high interest rates and fees over terms of up to 20 years, collecting loan repayments through tax bills and executing debts by placing liens on property – which left some borrowers vulnerable to losing their homes if they defaulted.

The reporters analyzed about 2,700 loans registered in the five counties with the most active PACE programs in Missouri. They found that borrowers, especially in predominantly black neighborhoods, sometimes paid more interest and fees than their home was worth.

PACE lenders said their programs provide much-needed financing for home renovations, especially in predominantly black neighborhoods where traditional lenders typically don’t do much business. They said their interest rates were lower than payday lenders and some credit cards.

Weeks after ProPublica’s investigation, the Missouri Legislature passed and Governor Mike Parson signed a law mandate more consumer protection and oversight of PACE. In Ohio, following our reporting, leaders of the state’s two most populous cities, Columbus and Cleveland, said they would not participate in any residential PACE plan.

The Ohio Bill would cap the annual interest rate on PACE loans at 8% and prohibit lenders from charging interest on fees. Lenders must verify that a borrower can repay a loan by confirming that the borrower’s monthly debt does not exceed 43% of their monthly income and that they have sufficient income to meet basic expenses.

The measure would also change the way PACE lenders secure their loans. In states where PACE has thrived in residential markets, PACE liens are paid first if a home is foreclosed. And a homeowner can borrow without the consent of the bank that holds the mortgage. The Ohio bill would refund PACE liens after the mortgage and any other liens on the property. Additionally, the mortgage lender should agree to add a PACE loan.

Ygrene officials did not respond to requests for comment. But a company official told the legislative committee that the bill would “unequivocally kill residential PACE.” Crystal Crawford, then vice-chairman of Ygrene, told the committee in May that the bill was “not a consumer protection bill – it’s a bank protection bill” .

Ohio’s limited experience with PACE illustrated how the program, with sufficient oversight, could be a low-cost option for borrowers. The Port Authority of Toledo-Lucas County has implemented a pilot program allowing residents to borrow money for energy-saving projects without paying high interest or fees. A local nonprofit, the Lucas County Land Bank, made sure borrowers had the means to repay loans, connected homeowners with contractors, and made sure home improvements were made. properly completed before releasing the loans.

Ygrene announced in August that she had suspended the granting of PACE residential loans in Missouri and California, but continued to provide PACE residential loans in Florida and PACE commercial loans in more than two dozen states. Commercial loans have not attracted as much attention from regulators because they tend to involve borrowers with more experience and access to capital who are not as likely as residential borrowers to default.

More recently, the Ygrene website suggests that instead of providing loans directly, Ygrene now operates as an online lending marketplace where consumers looking for personal home improvement loans can enter personal information and receive offers from third-party lenders.

The lawsuit filed by the Federal Trade Commission and the California Department of Justice alleges that the company misled consumers about the potential financial impact of its financing and registered liens on borrowers’ homes without their consent. To solve the case, Ygrene has agreed to provide financial assistance to certain borrowers, end allegedly deceptive practices, and meaningfully supervise contractors who act as its sales force. The settlement must be approved by a judge.

Ygrene said in an email that the complaints date back to the “early days” of the company marketing PACE loans in 2015 and that it has since taken “extensive steps” to protect consumers.

“We deeply regret any negative consequences any customer may have suffered, as even one unhappy customer is too much,” the company said.

SoLo Funds Borrow Review 2022 – Forbes Advisor Wed, 02 Nov 2022 17:11:52 +0000


To be eligible for a SoLo Funds account, you must meet these criteria:

  • Be at least 18 years old
  • Be a U.S. citizen or permanent resident with an unconditional 10-year card
  • Have a bank account with a debit card supported by SoLo Funds

When you apply for an account, SoLo Funds also runs a soft credit check, which does not damage your credit. Although your credit score does not affect your eligibility, it does feed into your SoLo score. This is an exclusive in-app credit score that SoLo Funds creates to help other lender users decide if they are comfortable lending you money or not.

Amounts borrowed

The minimum loan amount is $20. When you first create an account, the maximum you can borrow is $100. If you repay this loan on time and your SoLo score is high enough, your borrowing limit can increase to a maximum of $575.

Interest and fees

SoLo charges no interest on its loans. Instead, you control how much you pay for the loan. You will have two options that will dictate your loan costs:

  • Point. You set an optional amount between 0% and 15% which will go entirely to your lender.
  • Don. You set an optional amount that goes to the SoLo Funds platform to support its operational costs. SoLo Funds donates a portion of this revenue to a non-profit organization.

Both of these fees are completely optional. If you don’t set a tip and donation amount, you’ll get an interest-free loan. However, lenders can see your tip amount in your funding application, and if you set a higher tip, you might be more likely to attract a lender willing to fund your loan.

Late payment or delinquent loan fees

You have 35 days after disbursement of the loan to repay it. After that, you will owe a 10% late fee to your lender. You will also incur a transaction fee to cover the cost of collections, calculated using the following formula: 2 x (0.9% of loan amount + $0.70). For example, if you are late on a $100 loan, you will owe a total of $29.40 in late fees and transaction fees.

Unbanked Americans at rock bottom Sun, 30 Oct 2022 07:20:24 +0000

NEW YORK – The number of Americans without bank accounts fell to a record low last year, as the proliferation of online-only banks and an improving economy bring more Americans into the traditional financial system.

A new report from the Federal Deposit Insurance Corp. published last week revealed that 4.5% of Americans – representing about 5.9 million households – did not have a bank account in 2021. This is the lowest level since the FDIC began tracking the data in 2009 and compared to 5.4% of Americans in the 2019 survey data.

The decline in unbanked households can be partly attributed to the coronavirus pandemic. States and the federal government handed out trillions of stimulus dollars to Americans after covid-19 crippled the US economy in March 2020. Benefit programs largely needed a bank account to send funds quickly to people affected.

“During the pandemic, consumers opened bank accounts to quickly and securely access relief funds and other benefits,” Acting FDIC Chairman Martin J. Gruenberg said in a statement. .

But the FDIC attributed most of the improvement to the strength of the economy in 2021, as restrictions related to the coronavirus pandemic largely expired and the unemployment rate was low.

Black and Hispanic households remain much more likely to not have a bank account, though those numbers are improving. About 11.3% of black households do not have a bank account, up from 13.8% two years earlier. Among Hispanic households, that figure fell from 12.2% to 9.3%.

The top reasons someone would choose to be unbanked were largely unchanged from previous surveys. One in five unbanked households said not having enough money to maintain an account was the main reason they didn’t have one – a sign that being unbanked remains a problem. economic inclusion.

The FDIC began tracking unbanked Americans in 2009. In 2011 data, the number of unbanked Americans increased significantly following the Great Recession. While Americans have kept their bank accounts during the coronavirus recession, the number of unbanked Americans may increase in the future if inflation continues to hurt the economy and unemployment rises.

Other households had privacy and trust issues with banks. Large companies like Amazon have tracked consumer data through credit card usage for some time, but banks also profit from this data.

Americans outside the traditional financial system face many hurdles with their day-to-day finances, which is why policymakers are pushing so hard to get unbanked households to open a savings or checking account. Check cashing services, utility payment services, rent payments without a bank account often come with fees, money that someone with a bank account would not be subject to.

New immigrants and refugees are also among the unbanked. Jhuma Acharya, a former refugee from Bhutan and a case manager with Refugee and Immigration Community Services in Columbus, said he’s seen an increase in clients calling him about businesses that won’t accept not their money.

“I have never worked with a single (new) refugee who said they used a credit card in their lifetime,” Acharya said.

Acharya said customers typically take at least five months to build up enough credit with banks in the United States to open an account. In the meantime, Acharya said they are trying to educate customers on how to set up a debit card and how to use their electronic benefits transfer card.

There has also been a growing number of businesses that no longer accept cash as a form of payment, an issue that several state legislatures have begun to address.

Some states and cities required cash to be accepted before the covid-19 pandemic, such as New Jersey, Massachusetts, San Francisco and Philadelphia. However, at least seven states have passed such bills since the pandemic began, mostly in response to the growing number of contactless businesses following CDC recommendations to limit cash use for fear of spreading the virus.

Delaware, New York, Oregon, Arizona, Colorado, Connecticut and Rhode Island have all passed bills requiring businesses to accept cash, according to data from the National Conference of State Legislatures. More than a dozen states have introduced cash-mandated bills since 2020. At least three bills in the Republican-majority states of Florida, Mississippi and North Dakota have died in committee, along with two bills in New Hampshire and Wisconsin, mostly held by Democrats.

In Ohio, State Senator Louis Blessing III, Township of R-Colerain, introduced a bill in the 2021 legislative session that would open businesses up to lawsuits if they don’t accept cash as a means. of payment. Blessing cited protecting immigrant and poor communities as a driver of the bill, as well as protecting the data privacy of consumers and older people, who are more likely to use cash.

The bill is still pending in the Ohio legislature.

“I think if this bill went to a vote, every Democrat in the state would vote yes,” said Blessing, who was voted down mostly by his Republican counterparts in the Republican-held state.

The survey also revealed that the percentage of so-called underbanked households – those who have a bank account but still use expensive financial services like check cashing, pawnshops, loans payday and remittances – also declined.

The FDIC also found that about half of all US households used a non-bank payment service such as CashApp, Venmo, or PayPal in 2021.

Information for this article was provided by Samantha Hendrickson of The Associated Press.

In a pinch? Here are the four loans you can get the fastest Sun, 23 Oct 2022 14:30:49 +0000

Image source: Getty Images

When you’re in a bind and need cash fast, it’s important to know what your options are. There are different types of loans that you can get relatively quickly, depending on your needs. Before taking out a personal loan, it’s important to understand the different types of personal loans and find the one that’s right for you. Here are four of the most common.

1. Credit cards

If you have good credit, you may be able to get a cash advance on your credit card. This is usually a quick and easy process, but it will come with high interest rates. So if you are able to repay the loan quickly, this could be a good option. Cash advances can be very useful in an emergency situation when you need money immediately.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

Another benefit of using a credit card for a cash advance is that you may already have money available on your line of credit that you can use. This can be useful if you don’t want to take out a new loan or use other assets as collateral. However, using a credit card for a cash advance also has some drawbacks. First, as mentioned earlier, interest rates on cash advances are usually very high. This means that if you don’t repay the loan quickly, you could end up paying a lot of interest. Also, most credit cards have limits on how much you can borrow as a loan. So if you need a large sum of money, this might not be the best option.

2. Payday Loans

Payday loans are one of the fastest ways to get cash, but they come with high interest rates and fees. They’re usually only for small amounts of money, so if you need a lot of cash quickly, they’re probably not the best option. However, if you just need a little extra money to last you until your next paycheck, a payday loan might work. Payday loans are not ideal, Nevertheless. These are short-term, high-interest loans, usually due by your next payday in a single amount. Currently, 37 states regulate payday loans due to their high costs.

Payday loans are usually for $500 or less and are due on your next payday. Depending on state laws, people can get payday loans online or through a storefront lender. A typical two-week payday loan can have annual percentage rates (APR) as high as 400%. By comparison, credit card APRs can range from 12% to 30%. Payday loans should be considered an option of last resort.

3. Pawnbroker

Pawnbrokers are short-term loans secured by an object of value that people bring to a pawnbroker. As they are backed by the value of the object, they are cheaper than payday loans but are more expensive than a conventional loan. Pawnbrokers are regulated by the government. This type of loan is ideal for people who need cash quickly without a credit check.

Loan terms vary by pawnbroker. People can use valuables, such as jewelry or electronics, to get a loan based on the value of the item. No credit check is required. Those who may not qualify for a traditional loan can consider a pawnbroker. Once the loan amount is paid off, you will receive your items. If you don’t pay it back, the pawnbroker can seize the secured items.

4. Securities Lending

Title loans are another quick way to get cash. They are short lived secured personal loans supported by your car. Financial institutions put a lien on your car. If you are unable to repay the loan, they can seize your car, as it is used as collateral. Title loans generally do not consider your credit and can be approved quickly. However, a title loan is very expensive, with an APR of around 300%.

These are four of the most common types of loans that you can get relatively quickly. Consider which one best suits your needs and compare interest rates and fees before you apply. Understand how these personal loans work can help you make a smarter decision.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How to Get a $2,000 Personal Loan – Forbes Advisor Thu, 20 Oct 2022 17:25:12 +0000 Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Borrowing a $2,000 personal loan could help you out of a tough spot, whether you need to cover a medical bill, a car repair, or some other expense. While some lenders require you to take out a larger loan, there are banks, credit unions, and online lenders that offer $2,000 loans. You might even be able to get financing in as little as one business day.

Follow these five steps to get a $2,000 loan.

1. Consider qualification requirements

Most personal loans are unsecured, so a lender bases their approval decision primarily on your credit and income. Here are some common qualification requirements for getting a $2,000 loan:

  • Credit. A lender will look at your credit history and credit score when evaluating you for a loan. Borrowers with strong credit are more likely to qualify for more favorable terms. A good FICO score starts at 670, a very good score starts at 740, and an exceptional score starts at 800. You can check your credit score with all three major credit bureaus, use a credit monitoring service or go through your credit card provider. You can also view your credit report from If you spot reporting errors, challenge them to have them removed.
  • Revenue. You will need to meet a lender’s income requirements to qualify for a $2,000 loan. A lender may ask you to upload pay stubs when you apply to ensure you have the funds to repay your loan.
  • Debt-to-income ratio (DTI). Your DTI report compares your monthly debt payments with your monthly income. This is another indication of your ability to repay a loan. If your DTI is too high, a lender might reject your loan application. Lenders generally prefer a DTI of 35% or less.
  • Co-applicant. Although a co-applicant is not required to borrow a $2,000 loan, some lenders allow you to add one to your application if you cannot meet the credit and income requirements on your own.
  • Collateral. Most personal loans are unsecured, meaning they don’t require collateral. However, you can find secured loans, especially if you don’t meet a lender’s credit and income criteria. Secured loans are backed by collateral, such as a car title or bank account. However, you could lose your guarantee in the event of late payment.

2. Prequalify with multiple lenders

Although a $2,000 loan is a relatively small sum, it’s still worth shopping around for the best deal. Many online lenders allow you prequalify for a loanwhich means you can check your rates without affecting your credit score.

All you have to do is provide some basic personal information and the lender will show you loan offers. These offers aren’t locked in until you submit a complete application, but they can give you an idea of ​​your rates.

3. Compare your offers

Compare offers from various lenders to find the one with the lowest interest rate and fees. Here are some factors to consider when comparing $2,000 loans:

  • Annual percentage rate (APR). Your loan is APR measures both interest rate and fees, allowing you to compare loans on an apples-to-apples basis. The loan with the lowest APR should be the most affordable.
  • Repayment Terms. Consider how many months or years you will need to repay the loan. Since your loan amount is small, your repayment terms may be shorter than they would be for a larger sum.
  • Monthly payments. Review what your monthly payments will be on each loan offer to make sure they fit your budget.
  • Funding time. Find out how long it will take to receive the funds, especially if you have an immediate need for the loan.
  • Customer service and reviews. Check out lender reviews to see what other borrowers have to say about the loan process and customer service. Make sure the lender offers customer support via phone, email, and/or online chat in case you have questions or run into problems.

4. Complete and submit your application

Once you’ve found a loan offer you like, fill out and submit a full application. This application will be more complete than the pre-qualification form.

You will provide your personal information and upload all required documents. Sample documents include pay stubs, W-2 forms, and bank statements, although requirements vary by lender.

Many lenders allow you to complete the application online, although some offer the option of applying over the phone or in person.

5. Manage and repay your loan

After you submit your application, the lender will review your information and run a firm credit application to check your credit. This rigorous credit check could temporarily reduce your credit score by a few points.

Assuming the lender approves the loan, you will receive the funds less any origination fees charged by the lender. You will also start repaying the loan according to the agreed repayment term. Consider setting up automatic payments to make sure you don’t miss any.

How to get a $2,000 loan with bad credit

Bad credit can limit your options for a $2,000 personal loan. Since most personal loans are unsecured, lenders rely on your credit and income to determine your risk as a borrower.

That said, it’s still worth shop to see if a lender is willing to work with you. Universal Credit, for example, requires a minimum score of 560, while Upgrade and Avant require scores starting at 580.

You can also check with your current bank or credit union to see what they can offer. Some lenders will also let you apply with a co-signer or opt for a secured personal loan if your credit isn’t up to scratch.

Finally, you can search for a loan between individuals or one alternative payday loan (PAL) from a credit union, both of which may have more flexible credit requirements than traditional personal loans.

Beware of loans that don’t require a credit check, as these can be payday loans with exorbitant interest rates and fees. Payday loans generally require repayment in a few weeks and can have fees equivalent to APRs of 400% or more.

Where to get a $2,000 loan

Long-term costs of a $2,000 loan

The long-term costs of a $2,000 loan vary depending on your interest rate, fees, and repayment terms. The lower your rate and fees, the lower your borrowing costs will be.

You can also reduce your borrowing costs by opting for a shorter loan term. The downside of choosing a short-term loan, however, is that your monthly payments will be higher.

For example, let’s say you borrow a $2,000 personal loan at a rate of 10%. With a repayment term of one year, your monthly payment would be around $176 and you would pay $110 in total interest charges. Over a two-year term, your monthly payment would be $92, but your total interest charges would almost double to $215.

Use our personal loan calculator to estimate both your monthly payments and your long-term charges according to different repayment terms. Searching for a $2,000 loan offer can also help you find a loan that fits your budget.

Canada Post officially launches national loan program with TD Bank Group Thu, 13 Oct 2022 04:18:18 +0000

Canada Post is now offering loans in addition to stamps, packaging and its existing financial services as it officially launches a partnership with TD Bank Group.

The Crown corporation said Wednesday that the loan program, which could be expanded to other services, will provide more financial options to Canadians across the country, including in rural, remote and Indigenous communities.

“We believe this is the best way to provide Canadians with greater access to financial services, especially underserved Canadians,” said Michael Yee, vice-president of financial services at Canada Post, in an interview ahead of the launch.

The loans, which range from $1,000 to $30,000, fill a gap between payday lenders and traditional banks. The loans will come with interest rates set by TD, but customers don’t need to have a bank account and may be new to credit.

“What we discovered when we spoke to Canadians is that there really is a need in the market for access to easy and affordable loan services,” Yee said.

The Postal Service has been running pilots for the loan program, called MyMoney, since last year and in recent weeks it has scaled it up to the roughly 6,000 post offices nationwide. Customers used the loans for unexpected emergencies like car repairs or vet bills, as well as consolidating debt for higher-interest products, Yee said.

Postal workers are not authorized to give financial advice, but have been trained to instruct customers on how to apply for a loan online or over the phone, as well as to provide documents with more information. TD employees will help customers through the application, decision-making and financing process.

The partnership will help TD reach more Canadians, said Michael Rhodes, group head of personal banking in Canada, in a statement.

“Financial services are an essential service, and this alliance allows TD to play an important role in helping to expand access to banking services for more Canadians. »

Canada Post declined to provide details on the commercial terms of the partnership with TD, including how the two share benefits and risks.

The Canadian Union of Postal Workers supports the move as part of a broader campaign to bring low-cost banking to post offices, National President Jan Simpson said.

“This is just the beginning, because we are calling for a fully-fledged public bank, because as we know, in France and elsewhere in the world, the postal bank has really succeeded, and we know that it can succeed here in Canada. as well.”

Other countries such as Italy, Brazil, New Zealand and Switzerland also offer postal banking services, while Canada had a post office-based National Savings Bank until 1969.

Simpson said it was important for Canada Post to ensure appropriate staffing levels as it considered rolling out more services, but the expanded offerings could help reduce the company’s debt levels, create good union jobs and helping communities.

“We hope Canada Post expands beyond loans and into savings and checking accounts, mortgages, insurance and even credit cards, because we really need to offer a lot of services to those who are currently underbanked in our society,” she said. said.

Donna Borden, an executive with advocacy group ACORN, said in an emailed comment that she was happy to see a low-interest alternative to payday loans, which can charge what amounts to interest rates. interest of almost 400% per year.

She said, however, it’s still unclear how easily those with little or no credit will be able to access the new loans, and would also like to see a lower entry point.

“In the future, we’d like to see them offer even smaller equity interest loans to people in financial crisis – so people can avoid having to use payday loans.”

Canada Post already provides a range of financial services, including international remittances, money orders and prepaid gift cards that together account for five million transactions worth $2 billion a year, but the new program could part of a larger expansion, Yee said.

“We believe we have a solid foundation and are already a trusted partner for many Canadians providing financial services. We are therefore looking to expand these financial services through partnerships in the future to provide greater access to Canadians.

By Ian Bickis


Don’t be put off by “buy now, pay later” plans Sun, 09 Oct 2022 01:00:00 +0000

Like kids of any age, I loved cartoons when I was a kid.

But as a kid interested in money, the quirky comic book character who always intrigued — even though he engendered love-hate feelings that I didn’t recognize until decades later — was J Wellington Wimpy, commonly known as Wimpy, of Popeye fame.

He wasn’t a heavyweight action hero, living up to his drawling image.

I loved his one-liners and quick thinking, always seemingly about money.

Wimpy would be “happy to pay you Tuesday for a burger today.” I watched him scramble to pay for things, get items for free just promising to pay for them eventually.

And then I realized he probably never paid for them down the line; even though his intentions were good, it made him a mooch, a behavior I never admired at all.

Fast forward to today and that’s why I’m understandably skeptical of ‘buy now, pay later’ [BNPL] programs that have become increasingly popular in recent years, with the largest operators seeing their activity increase tenfold or even more since 2019.

What seemed mostly innocuous – most BNPL loans range from $50 to $1,000 – as an alternative form of credit for online purchases looks different in the harsh light of runaway inflation and rising prices. interest rate.

Consumers have easily adopted the Wimpy persona – volunteering to pay soon for the item they want to buy today – without even thinking about the consequences.

Yet BNPL is a Venus flytrap of finance, beautiful to look at, terrible to get too close to, and chances are the upcoming holiday season will prove it. Unlike the old cartoon mayhem, the punch in the mouth that some consumers and the economy more broadly will suffer will be no laughing matter.

Back in the days of Wimpy, buy now, pay later was known as “layaway”, the main difference being that layaway plans [still available today] do not deliver the product until all has been paid for.

BNPL plans are an interest-free form of credit that offers the consumer the product now, with the loan usually repaid in four instalments. The first payment works as a down payment on the purchase, and offers are subject to late fees if subsequent payments are missed.

These programs have been legitimized by retailers pushing them to the point of online payment. Borrowers tend to be younger and lower income, although many users have credit cards and other payment options available, but instead gravitate towards BNPL because they like to know exactly what they owe, how often and for how long.

In addition, this financing is generally easy to obtain and quick; applicable interest rates vary widely, and although consumers tend to think they’re getting a good deal, the fine print is the only place to confirm whether rates are better than those available on credit cards.

But Hugh Tallents, a senior partner at cg42 – a consultancy that studies competitive strategies – says buy now, pay later is “nothing more than a payday lender disguised as something that shouldn’t be in a technology company.

This comparison should make consumers wary, as payday lenders – who give out super short-term loans with easy approvals but outrageous interest rates – are widely seen as predatory, trapping borrowers who can’t pay in a cycle of taking out new loans to repay old ones. Their offers may bridge the gap until the next payday, but often widen the money pit a consumer will face later.

BNPL is particularly dangerous because, according to a recent cg42 survey, almost 80% of consumers do not feel that the programs actually involve debt.

A layaway plan is not a debt because the product is not purchased until the final payment is made. With “buy now and pay later”, borrowers have taken on an obligation.

“People are spending future paychecks that they haven’t earned and have no guarantee of earning, in an environment where inflation is still high, wages are still way below that inflation and we’re starting to see layoffs and hawkish Fed policy that is meant to create additional unemployment,” Tallents said in an interview on my podcast, “Money Life with Chuck Jaffe,” earlier this week. boils down to the idea that this is not going to be a good situation for people, especially young people who depend on it to supplement the way they live their daily lives.”

The problem is that BNPL can be habit-forming. Who doesn’t like Wimpy’s approach when they can get away with no perceived cost?

But if consumers start paying this way now – at a time when they can afford these things – there’s a question of what will happen if they continue to mortgage their future incomes as the environment turns hostile. to such behavior.

Expect to see sellers adding more fees, charges and penalties — just like credit card issuers did when this industry first emerged — and more consumers being denied credit. [If you find yourself having issues with a BNPL service or product, submit a complaint online to the Consumer Financial Protection Bureau at, or call the agency at (855) 411-CFPB [2372].

Since buy now, pay later loans are relatively new and haven’t seen an inflationary period before, their impact on the economy as a whole will be difficult to gauge, but Tallents expects a BNPL’s debt bubble bursts this winter, fueled by heavy use of the programs over the holidays and until regulations control growth “and/or the wheels come tumbling down for the consumer.”

Unfortunately, the people most affected by the problem will be those who can least afford it.

If you haven’t handled credit cards and debt well in the past, don’t be fooled into buying now, pay later.

It’s the wimpy way – literally and figuratively – of managing money, and you better eat your financial spinach and stay strong against anything that would encourage overspending and overextending credit in the market. inflationary today.

Counties urge state to probe rural bank cuts | New Thu, 06 Oct 2022 00:11:00 +0000

ALBANY – Just as many merchandise retail businesses have boosted their online presence while reducing brick-and-mortar stores, many banks have closed branches, encouraging customers to use web-based services for their shopping services. account.

This is a trend that has had a significant impact on residents of rural counties.

According to the New York State Counties Association, small business owners, seniors and people without transportation are the hardest hit by the bank closings.

But the association is not content to deplore the trend.


In a resolution recently passed by the group representing county governments, it urges Gov. Kathy Hochul and the state legislature to open an investigation into bank branch closures in rural counties.

“The counties are gravely concerned that the closure of additional local bank branches will put communities and their consumers in dire straits if New York State does not investigate this crisis,” the association says. in its resolution.

The association also notes “there is no reason to believe this trend will dissipate without appropriate intervention.”


A reduction in the number of bank branches has been playing out nationwide since 2009, a year marked by headlines reporting the financial crisis hitting the economy. Until then, the number of bank branches had been increasing for decades.

Closures, according to federal data, have accelerated during the pandemic, with the number of bank branches declining nearly 4% between 2020 and 2021, with more than 3,200 branches closed.

Many consumers have adapted to the expansion of online banking. But the Counties Association points to banking “wildernesses” in rural areas as a significant problem due to the fact that many communities lack reliable internet access.


In a statement released to CNHI, Clare Cusack, President and CEO of the New York Bankers Association, said, “Bankers are committed to meeting their customers’ demands for service and convenience. Today, there is an unprecedented range of banking choices for consumers, and networks are evolving with customer choices.

“To serve customers in areas where building or maintaining a branch is not possible, some banks are introducing innovative technologies to serve customers safely and conveniently,” Cusack added.


The reduction in banking services in rural parts of the country has also raised concern from the federal Consumer Financial Protection Bureau.

In a report last April, the agency noted that most banking “wildernesses” — defined as having no branches within 10 miles of a census tract center — are in rural areas. .

“Overall, rural census tracts are 10 times more likely to be in a banking wilderness than urban tracts,” the bureau found.

Beyond the statistics, the decline in banking services in rural areas has led to increased financial hardship for residents.

“Rural consumers are more likely to be invisible to credit, forcing them to turn to more expensive alternatives to bank credit, such as payday loans and pawnbrokers,” the federal agency said. the consumption. “And, lower credit scores mean rural consumers are paying higher rates on their mortgages – even if they are the least able to afford it.”

$520,659 for Family and Small Business Loans: St. Helens Credit Union to Share Funding | New Thu, 29 Sep 2022 00:00:00 +0000

Three Oregon credit unions, including InRoads in St. Helens, will receive a total of $520,659 in federal dollars to support small loans to families and businesses.

InRoads Credit Union can be reached at 503-397-2376 for more information on federal loan funds for families and small businesses.

According to US Senators Jeff Merkley and Ron Wyden, the funding comes from the Community Development Financial Institutions Fund (CDFI Fund) of the United States Department of Treasury under the FY22 program of the Small Dollar Loan (SDL) program.

“Whether it’s a mortgage, a car loan, or a line of credit to start a business, access to credit is crucial to the financial well-being of Oregonians,” Merkley said. “This funding provided to credit unions in St. Helens and Portland will help provide crucial services and support to Oregonians and provide an important alternative to expensive payday loans. I will continue to work hard to ensure that all Americans have access to vital financial services and resources. »

“The essential and manageable financial option that credit unions provide in Oregon communities takes on even greater importance when families and small businesses walk an economic tightrope,” Wyden said. “I am pleased that these credit unions have won this federal investment that helps them generate opportunity in their communities so Oregonians do not turn to exploitative financial services, and I will continue to fight for credit unions across our state are getting similar resources. ”

Through the SDL Program, the CDFI Fund offers loan loss reserve (LLR) premiums to enable CDFIs to establish a loan loss reserve fund to cover the costs of establishing or maintaining a loan loss reserve. a small loan program; and technical assistance (TA) grants to support technology, staffing, and other eligible activities to enable a CDFI to establish and maintain a small loan program.

The laureats :

  • $150,403 to InRoads Credit Union in St. Helens
  • $156,759 to Ironworkers USA Federal Credit Union in Portland
  • $213,497 at Point West Credit Union in Portland