1 / 21

Financial Predatory Practices

Financial Predatory Practices. Diane Childs Financial Information Outreach Coordinator. Our Programs. Debt Management Lending – Payday & Consumer Finance. Financial Institutions Pre Need Money Transmitters Securities. Pawnshops. Mortgage Lenders. Identity Theft. What we do.

bryant
Download Presentation

Financial Predatory Practices

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financial Predatory Practices Diane Childs Financial Information Outreach Coordinator

  2. Our Programs • Debt Management • Lending – Payday & Consumer Finance • Financial Institutions • Pre Need • Money Transmitters • Securities • Pawnshops • Mortgage Lenders • Identity Theft

  3. What we do

  4. Submitting a complaint

  5. Check and Verify Licenseor Registration 1-866-814-9710 www.dfcs.oregon.gov

  6. Debt Management Companies • Assist with: • Debt • Credit repair • Loan modification • Bankruptcy (how to) • Financial education

  7. Allowable Fees • Maximum counseling, agreement fee: $50 • Maximum monthly fee: $65 • 7.5% charge = total amount of reduced debt (debt settlement, loan mods, short • sale)

  8. Loan Modifications 0 • Similar fee structure Free Help: HUD-certified foreclosure counselors 1-800-SAFENET www.foreclosurehelp.oregon.gov

  9. Red FlagsDebt Management • Settling for "pennies on the dollar" • No adverse affect on credit ratings • Don’t pay creditors • Upfront fees

  10. Red FlagsLoan Modification • Stop making mortgage payments • Mortgage payment to hired company • Ads, mailings similar to government • Performs “forensic audit”

  11. Combined Red Flags • Upfront fees • Solicitations: email, mail, phone or Internet pop-up ads • Guarantees positive results • Out-of-state attorneys (no registration needed)

  12. State of Oregon Licensed Privileged and Confidential File Number, Notice …tri-bureau credit report…owe combined total of $28,589 Call Now…eligibility expires Portland Office

  13. Actual rates charged 950% 90% 2737% 343% 800%

  14. Legal Payday Loan Rates • 36% annual percentage rate (APR)* • One time origination fee • No renewal fees • Restrictions on additional loans *Interest, Fees – 154% if lender charges maximum rate, fees

  15. Legal Consumer Loan Rates • 36% annual percentage rate (APR) • No origination fees • No “bump up” to higher rate

  16. Predatory Tactics Get cash now! No credit check! Bad credit? No problem!

  17. Identity Theft Tactics

  18. Check and Verify License 1-866-814-9710 www.dfcs.oregon.gov

  19. Cease-and-Desist • No license • Excessive interest rates: 89% - 342% • $17,500 penalty • Stop collection activity

  20. Check and Verify Check License orRegistration Know legal fees, charges, interest rates Contact us: 1-866-814-9710 www.dfcs.oregon.gov

  21. More Information 1-866-814-9710 www.dfcs.oregon.gov

More Related