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Page Not Found – Official Honda Web Site


#monthly car payment
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[1] MSRP excluding tax, license, registration, $835.00 destination charge and options. Dealer prices may vary.

[2] MSRP excluding tax, license, registration, $900.00 destination charge and options. Dealer prices may vary.

[3] Subject to limited availability through September 2014 to residents of CA, OR, MA, RI, CT, NY, NJ, and MD on approved credit through American Honda Finance Corp. Closed end lease for 2014 Honda Fit EV for well-qualified lessees. Not all applicants will qualify. No purchase option at lease end. MSRP $37,415 (includes destination). Excludes tax, title, license, fees, registration, options and insurance. Total monthly payments $9,324. Lessee responsible for non-routine maintenance and excessive wear/tear. Lease includes collision coverage, routine maintenance, roadside assistance, unlimited mileage, and navigation system updates. Total due at lease signing is $259 plus tax and title and includes first month’s payment. Please see your authorized Fit EV dealer for complete details. For lessees who elect to install 240-volt charging equipment in their home, the charging equipment (hardware only) will be provided by Honda, the lessee remains responsible for installation and installation materials.


Parent Plus Loans


#parent plus loan
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Parent Plus Loans

Direct Plus Loans

A Direct PLUS Loan is a federal loan for the parent of a dependent undergraduate student that allows the parent to borrow up to the cost of the student’s education minus financial aid. The loan has a fixed interest rate and loan fees. To view current rates and fees go to www.studentloans.gov

To be eligible for a PLUS Loan you must file a 2015-2016 Free Application for Federal Student Aid (FAFSA); be a United States citizen, national or eligible non-citizen; be borrowing to pay college costs for a dependent student who meets all requirements set forth in federal regulations; provide your Social Security number; not be in default of any Title IV Loan unless satisfactory repayment arrangements have been made with the holder; not owe a refund on any Title IV grant unless satisfactory repayment arrangements have been made; not be determined to have adverse credit as defined by the PLUS Loan program; and comply with all other requirements as set forth in the Higher Education Act of 1965, as amended.

To apply for Plus Loans please do so online at https //studentloans.gov/

PLUS LOAN APPLICATION PROCESS

Step 1 – Complete a FAFSA (Free Application for Federal Student Aid). A PLUS Loan cannot be processed until a FAFSA has been completed and accepted by the federal document processor. The FAFSA can be completed online at www.fafsa.ed.gov and you can call (800) 433-3243 for assistance.

Step 2 – Determine the amount you wish to borrow. Using the student’s financial aid award information (if applicable) and the charges associated with the 2015-2016 academic year, determine how much money you will need to borrow to pay your child’s tuition bill. The PLUS Loan origination fee may also be added to your loan requested amount. Complete the Direct PLUS loan application online.

Step 3 – Apply for a PLUS Loan. Complete the Master Promissory note online www.studentloans.gov

Step 4 -PLUS Loan Disbursement. One half of the approve loan amount on behalf of your lender, will electronically disburse the funds of your PLUS Loan to Trinity College and these funds will be applied directly to the student’s tuition account. You will receive notification when funds are disbursed.

For additional information about Parent Plus Loans, please go online to http //www.direct.ed.gov .


Parent PLUS Loans


#parent plus loan
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Parent PLUS Loan

Federal Direct Parent PLUS Loan

Direct Parent PLUS loans are unsubsidized loans for the parents of dependent students. Parent PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. These loans are awarded to dependent undergraduate students who meet the following criteria:

  • Enrolled in an eligible degree-seeking program
  • Enrolled at least half-time (6 credits for undergraduate students)

You must be the student’s biological or adoptive parent or the student’s stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time at a school. For financial aid purposes, a student is considered dependent if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid (FAFSA) is submitted. (Exceptions are made for veterans, wards of court, and other special circumstances.) If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.

Additional requirements to receive a PLUS loan:

Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done). In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs. You can find more information about these requirements in Funding Education Beyond High School: The Guide to Federal Student Aid available at: www.studentaid.ed.gov .

Credit check endorser alternative:

When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan.

If you are appealing/endorsing the PLUS loan due to adverse credit, additional PLUS counselingВ must be completed by the parent (for Parent PLUS loans) at studentloans.gov in addition to completingВ the credit appeal/endorse process (1-800-557-7394 for assistance). The government requires this additional PLUS counseling for anyone appealing/endorsing a PLUS loan with denied credit after March 29, 2015.В  You may complete PLUS counseling by selecting Complete Counseling , and selecting the 3rd option PLUS counseling

Loan limits, interest rate, and loan charges:

There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child’s education minus any other financial aid received, such as a Direct Subsidized, Unsubsidized Loan, and/or grants and scholarships. The school will determine the actual amount you may borrow.

Student’s Cost of Attendance

Financial Aid Awarded

____________________________

= Maximum PLUS loan amount

Beginning July 1, 2015, the interest rate for Direct PLUS Loans is a fixed rate of 6.84%. PLUS Loans disbursed prior to July 1, 2015, the interest rate is a fixed rate of 7.21%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan’s first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact the Direct Loan Servicing Center at 1-800-848-0979.

In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

Repayment:

Repayment begins within 60 days after your loan is fully disbursed and lasts ten years. Parent borrowers may contact the Direct Loan Servicing Center at 1-800-848-0979 for more information.

Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds. Increases in Unsubsidized loans due to this, are upon student request (in writing) only.

Applying for the Parent PLUS Loan

To take out a Direct Loan for the first time, go to www.studentloans.gov and you must complete a:

  • Parent PLUS Application AND
  • Master Promissory Note (MPN)
    • The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).

How to apply:

Since the parent is responsible for the repayment of the Federal Direct Parent PLUS loan, the parent must follow these steps:

  • Go to www.studentloans.gov to complete a Parent PLUS Application
  • The Parent borrower will be asked to Sign In using their FSA ID
  • Click Request a Direct PLUS Loan
  • On the next page, choose loan type Parent PLUS
  • Parent borrower will authorize an immediate credit check
  • If credit is approved and it is the first time that the parent borrower is seeking the Parent PLUS loan at University of Hawai i at M noa, then the borrower will be directed to complete the DL Parent PLUS MPN.
  • Click on the link Complete MPN and choose Parent PLUS to complete an MPN for the loan

The Parent PLUS loan and amount will be approved based on the parent’s credit from their PLUS application and a completed promissory note. Upon approval, the loan will be disbursed to the student’s UH account along with the student’s other aid approximately ten days before the start of the semester at earliest. There may be delays if there are unsatisfied requirements or if enrollment is less than full time (12 credits undergraduate).

When the loan is disbursed, it will satisfy any charges that exist (e.g. Tuition, fees, housing). Any excess funds will be refunded via paper check or e-refund approximately one week after disbursement.

You’ll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount and loan fees, and the expected loan disbursement dates and amounts.


Paycheck Loans by 1 Hour Payday Advance


#paycheck loans
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Payday Loans by 1 Hour Payday Advance

Need quick cash?

Caught unprepared between paydays?

We are able to help!

One Hour Payday Advance is the fastest way to procure safe, online cash advances and paycheck loans. Signing up online and becoming qualified for a payday cash advance is fast and simple, and it is common for people to have no papers to fax, depending on the lender that accepts your loan data. Once a lender approves you for a payday advance, they will electronically deposit the personal cash loan dollar amount directly into your bank account. Our service providers offer manageable payment options and a reliable, sensible service that gets you the cash you need right now. It’s as easy and it sounds, so why wait to get that cash advance?

Payday Loans – 1 Hour Payday Advance

Get a Paycheck Advance Today – 1 hr Payday Loan

Apply now for a payday loan in 1 hour!

A paycheck loan provides you with an unsecured, short-term cash advance until your paycheck day. Customers choose personal cash advances to take care of unplanned, small expenses. while escaping costly bounced-check fees and late payment fines.

Define a payday loan.

Basically, a payday loan is a small unsecured loan, generally in the range of $100 to $1500, that has the goal to pay for emergency bills or needs that you least expect. Simply stated, you are borrowing cash from your incoming paychecks at a small cost. Paycheck loans are quite commonly known as short-term advances, payday advance loans, 1 hr loan, quick cash advances, cash advance loans, cash loans, and no shortage of categories. Whichever way you want to call them, payday loans can help support you with your financial trials.

What do you need to do to get a payday loan?

You must be a legal resident 18 and up, be employed, or any type of routine income such as disability and qualification requires that you have your own personal bank account. In order to get the best probability of obtaining a capable lender and get be accepted for an advance, please be certain you fully fill in the blanks in our form to the best of your ability. The lender will evaluate your application, and using the integrity of the information you submit, conclude the amount for your loan offer.


What Do I Need for a Bank Loan?


#need a loan
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Other People Are Reading

Significance

The documentation required by the lender gives him an idea of the borrower’s ability and willingness to repay. For example, a borrower’s credit history shows the lender if the borrower has paid his previous debts on time and if he is currently overextended himself with debt payments. In addition, income and employment documentation show the lender if the borrower has the current and future income to support the new debt.

Function

Each piece of documentation supports a borrower’s case for the new loan. For example, pay stubs and bank statements support the borrower’s cash flow and ability to repay the debt. In addition, a copy of the borrower’s income tax returns from the past few years show a history of his income and its stability, or instability, depending upon the information in the returns.

Time Frame

A lender will be looking for the most recent information available on each borrower. In most cases, the lender will want the most recent two months information on pay stubs and bank statements and the most recent two years on the borrower’s income tax returns. Other information, such as an appraisal on the collateral, may or may not need to be recent, depending upon the amount that the borrower is looking to borrower.

Considerations

If a borrower lacks the necessary requirements but more than makes up for it in other areas, he may still be able to get the loan. For instance, if the borrower has a low credit score, but several months, if not years, of payment reserves in the bank, he may still be able to procure the new line of credit. In many cases, the lender can look at the loan on a case-by-case basis.

Misconceptions

Many borrowers assume that with a good credit score, there is no need to provide the bank with additional information, however this is not true. The lender needs to look at the whole financial picture of the borrower to make an accurate assessment of her ability to repay the new debt. Without all of the required information, the lender may not be able to make any decision at all. Many pieces of required documentation are not simply required by the lender, but by the FDIC as well.


Paycheck Advance Loans And Calculator


#paycheck loans
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Paycheck Advance Loans And Calculator

Monday, September 27, 2010

Paycheck Calculator – Indispensable Economic Tool

Do you know what your withholdings should be? Are you sure that you pay the right amount of money to taxes? Well, paycheck calculator will help you. It’s a very useful economic tool that calculates an individual’s net pay. Using this calculator you will be knowledgeable about the essential amount of earnings after taxes have been withheld.

What Is the Main Function?

If you are interested in calculating the deductions, including taxes, hourly paycheck calculator is just what you need. You are an employee that works for the government or you are a salaried individual or, maybe, you are a businessman. It doesn’t matter. This economic tool will calculate your earnings according to the information you perform. There is a variety of paycheck calculators offering different range of functions.

The Main Types of Paycheck Calculators

There are two main types of calculators. one that uses supplemental tax rates to determine withholdings on particular earnings such as bonuses (the so-called percentage method), and another that uses an individual’s previous paycheck in order to apply the right withholding rates for particular earnings (aggregate method). Besides these two bonus calculators there are also four additional tax tools, such as withholding calculator, Earned Income Credit (EIC) Assistant, Alternative Minimum Tax (AMT) Assistant and paycheck calculator which help to supply you with all necessary information about your tax rates and withholdings.

– Withholding calculator will help you to make sure that you are not withholding too much or too little from your paycheck. This tool will be useful when you change a job and have your salary cut or increase, when you get a raise, sell or buy a house or even when you are going to expand your family.

– Earned Income Credit (EIC) Assistant will be helpful in determining if you are eligible for EIC when you file your taxes and estimate a credit in accordance to the information you perform.

– Alternative Minimm Tax (AMT) Assistant will be useful if you are a subject to the AMT and you are interested in determining your personal responsibility.

– Free paycheck calculator will make you sure that the calculations on your paycheck are fulfiled accurately with no mistakes and it will also help you to estimate your “bring home” pay when you start a new job.

So, if you really care about your taxes and withholdings, if you don’t want to pay more than you should, use paycheck calculator and feel confident that you won’t be cheated.


Payday advances without the loan-sharking.


#guaranteed payday loan
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Story highlights

    New service lets workers access pay they’ve already earned, before payday Instead of charging fees or interest ActiveHours allows users to pay what they want The service is only available to hourly workers

Payday lenders aren’t the most scrupulous of operations. Preying on the desperation of people who don’t have enough money to make it to their next payday, these lenders dole out short-term loans with exorbitant interest rates, forcing already cash-strapped customers deeper into debt. And while many have tried to reform the payday lending industry, we’re still awaiting the right answer.

Ram Palaniappan has a new approach. He wants to solve the problem at its root, by eradicating the payday altogether.

According to Palaniappan, the real culprit here is the very concept of the payday. The way he sees it, there’s no reason people who already have done their work should have to wait several days, or even weeks, to get the money they’ve rightfully earned. So, in May, Palaniappan launched ActiveHours. The Palo Alto startup, which recently raised $4.1 million, makes an app that allows hourly workers to immediately access pay they’ve already earned, without having to wait for their employer’s standard pay cycle.

What’s more, there are no fees. Instead, ActiveHours makes money on tips, asking users to pay what they want. “We’re trying to build something that’s completely aligned with the consumer, unlike what people are used to today in typical financial services, where it’s, in some ways, adversarial,” he says.

Palaniappan is far from the only entrepreneur who sees opportunity in creating an alternative to the payday loan. LendUp. for instance, has raised $64 million to offer loans with lower interest rates that become cheaper over time. ZestFinance, launched by an ex-Googler, is similar. But even these players still rely on fees, both for profit and protection. In this demographic, after all, there tends to be a high rate of delinquency, so even the most upstanding lenders typically account for those losses upfront. But with its no-fee model, ActiveHours is a radical departure.

It’s also riskier. The company is betting that when given the choice, its customers — already struggling financially — will still pay for the service it provides. “Some people look at the model and think we’re crazy,” Palaniappan says, “but we tested it and found the model is sufficient to building a sustainable business.”

Unlocking the Money You’ve Already Earned

This is not Palaniappan’s first financial services company. In 2004, he launched RushCard, a startup that allowed people without access to a traditional bank account to get their paychecks loaded onto a prepaid ATM card. The goal was to offer the so-called “under-banked” an alternative to going to Western Union or other check cashing businesses, which take a large cut of every transaction.

While Palaniappan was working at RushCard, though, he learned that an employee working in the call center had recently taken a payday loan. He immediately wrote her a personal check and told her to pay it off as soon as possible. “I didn’t want anyone who worked for me to have to use payday loans,” he says. That’s when he realized that there should be an easier way for employees to unlock the money they’d already earned.

When he left RushCard in 2012 after selling it to a private equity firm, he began experimenting with ways to automate such a service. It’s a complex process that requires verifying who an employee is, where he works, how much he’s worked, and what his hourly wage is. Then there’s the equally difficult process of integrating with banks to deposit and withdraw funds from each user’s existing bank account.

Palaniappan and several of his RushCard team members spent about a year developing the technology and launched the app publicly in May. Back then, ActiveHours was handling transactions for employees from 100 different employers. Today, it’s 250 employers, including the likes of Best Buy, Starbucks, and even major banks like Wells Fargo and Bank of America.

Employees can sign up for Active Hours on their own, providing their bank account number. They use the app to upload a photo of their electronic time sheets (paper time sheets aren’t allowed). ActiveHours knows which systems are used by most employers, so it uses a photo of the system to verify the timesheet is real and checks the hours logged against past deposits made into the user’s bank account.

ActiveHours also uses geolocation to ensure the user was at work when he took the photo. Once a user has been approved, he can see how much money he’s already earned and transfer any percentage of it into his bank account. ActiveHours essentially gives the user a cash advance and deposits it into the user’s account the next day.

When payday rolls around, ActiveHours withdraws the same amount from the user’s account. And at the end of it all, users can opt to pay ActiveHours a couple bucks — or nothing at all.

Unusual as that may sound, Palaniappan isn’t the only one who believes in the concept. ActiveHours has caught the attention of Ribbit Capital, a financial services investment firm that typically only invests in late stage companies. According to Micky Malka, founder of Ribbit Capital, what Palaniappan and his crew are building is so special, though, the firm was compelled to join ActiveHours’ seed round. “It’s a very powerful concept,” Malka says. “As we move into this on-demand economy, your payroll should be the same way.”

The Threat of Abuse

Still, not everyone is as convinced. According to Adair Morse, assistant professor of finance at UC Berkeley’s Haas School of Business, ActiveHours is a smart idea that’s meeting a very real need for low cost alternatives to payday loans. And yet, she says, ActiveHours may be overly vulnerable to abuse. Although people are only borrowing money they’ve already earned, Morse says it’s still possible that when ActiveHours tries to withdraw money from a user’s account on payday, the money will already be gone.

Then, there’s the fact that ActiveHours relies on donations, meaning it’s susceptible to what economists call the free rider problem. “People assume someone else is better able to step up and contribute,” she says. “This whole idea of donations sounds great, but we’re talking about people who are constrained. They don’t have savings. They have debt.” And, if the donation model doesn’t work, Morse points out, ActiveHours reserves the right to change its fee structure at any point.

But Palaniappan says that, so far, such abuses have not been a major issue. The bigger problem, he says, is convincing people ActiveHours isn’t just another payday lender tricking people into a cycle of debt. “People aren’t used to the model, so they think it’s too good to be true,” he says. “They’re judging us with a standard that’s completely terrible. What we’re doing is not too good to be true. It’s what we’ve been living with that’s too bad to be allowed.”


Payday lenders giving advances on unemployment checks


#unemployment loans
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Payday lenders giving advances on unemployment checks

Critics say the high fees that come with the loans send the jobless into a cycle of debt. The industry sees it as a service for people in need.

Ace Cash Express in Van Nuys and many other lenders take unemployment checks (Anne Cusack / Los Angeles )

The payday loan industry has found a new and lucrative source of business: the unemployed.

Payday lenders, which typically provide workers with cash advances on their paychecks, are offering the same service to those covered by unemployment insurance.

Critics of the practice, which has grown as the jobless rate has increased, say these pricey loans are sending the unemployed into a cycle of debt from which it will be tough to emerge.

Many payday clients pay off their loans and immediately take out another, or borrow from a second lender to pay off the first, and sink ever deeper into debt. Typical customers take out such loans about 10 times a year, by some estimates.

Lenders “market the product to give the illusion of assistance,” said Ginna Green, a spokeswoman for the advocacy group Center for Responsible Lending. “But instead of throwing them a life jacket they’re throwing them a cinder block.”

The industry sees it as a service, providing short-term loans to people who wouldn’t stand a chance with a conventional bank.

What’s clear is that in California, where the unemployment rate hit 12.4% in December, some jobless workers in need of quick cash are turning to payday lenders, regardless of cost.

Ed Reyes, a Los Angeles resident who lost his job in retail about six months ago, said he has had to take out payday loans three times since becoming unemployed. The advances on his government check, he said, have helped him pay his household bills before late charges accrue.

“To be honest, I didn’t know if they’d give me one, but they did,” he said, standing outside the unemployment benefits office in downtown Los Angeles.

Ignacio Rodrigues, a clerk at Van Nuys payday lender Ace Cash Express, said about a quarter of first-time borrowers he sees now use their unemployment checks as proof of income.

“They just need extra money, and we do it,” he said of the instant loans.

It’s legal. Payday lending is regulated by the state, but lenders are not required to check sources of income. A borrower needs only to have a bank account and valid identification to get a loan.

In California, close to 1.4 million jobless residents are getting unemployment benefits, out of a pool of some 2.3 million who are unemployed, according to the most recent numbers. Weekly benefits range from $40 to $450 and normally last a maximum of 26 weeks. But federal extensions signed into law during the recession have boosted the maximum duration for some workers to nearly two years.

With regular checks rolling in, the unemployed can be reliable borrowers for payday lenders. By law, the lenders can charge a $15 fee for every $100 borrowed. The maximum loan in California is $300 — which coincidentally is the just about the size of the average Golden State unemployment check.

The borrower leaves a postdated personal check to cover the loan and fee, which the lender can cash after about two weeks.

In California, the maximum annual interest rate allowed for these loans is 459%. APRs in other states are even higher: nearly 782% in Wyoming and 870% in Maine. The rates are blasted by critics. But Steven Schlein, a spokesman for payday lender trade group Community Financial Services Assn. of America, defended offering the loans to the unemployed, saying the critics don’t understand the realities of scraping by.

“Who are they to decide?” Schlein said. “We issue billions of dollars of credit. They issue platitudes and pats on the back.

“These people need money. They tell them to go to their relatives. These people have bills to pay. These people need to go to job interviews. They need credit.”

Schlein said just a fraction of the industry’s clientele is unemployed. Still, it’s good business.

Making payday loans to borrowers who receive unemployment benefits is not necessarily riskier than making other loans, he said, particularly in California, where benefits are relatively high. Default rates for loans made by the industry’s handful of public companies range from about 2.5% to 5%, Schlein said.

There were 2,385 licensed payday lenders in California as of 2008, according to the most recent report from the state Department of Corporations, which regulates the lenders. Nationwide, payday clients borrow an estimated $40 billion a year.


Payday lenders back in business with looser regulations


#payday lenders
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Payday lenders back in business with looser regulations

By Patrick Marley of the Journal Sentinel

Updated Dec. 9, 2012

Madison – Payday lenders have wriggled out of state regulations that lawmakers put in place 2 years ago, in part because Republicans last year loosened some of those restrictions.

Many of the lenders have shifted from payday loans that were good for as little as two weeks to what they call installment loans – high-interest loans that don’t fall under payday lending regulations. Installment loans can have annual interest rates of 500% or more.

This is an industry that just kind of morphs depending on the law to regulate them, said Stacia Conneely, a lawyer with Legal Action of Wisconsin who helps people who get behind on high-interest loans.

In 2009 and 2010, Democrats who controlled the Legislature at the time had a fierce debate over payday loans, which were unregulated at the time. Some lawmakers wanted to cap interest rates at 36%, but others said that would put lenders out of business and advocated for regulations that didn’t go as far.

They ultimately reached a compromise in the spring of 2010 that Democrats praised as a way to keep low-income consumers from getting caught in endless debt. Then-Gov. Jim Doyle, a Democrat, made the bill tougher by using his partial veto powers to ban auto-title loans and broaden the definition of payday loans. Republicans took control of the statehouse less than a year later and softened the regulations so they were friendlier to lenders.

Even before the original law passed, lenders began changing the types of loans they made, according to Conneely.

It’s definitely a classic example of how interest groups counter to the public interest can distort and ultimately get something more amenable to them, said Rep. Gordon Hintz (D-Oshkosh).

Hintz spearheaded the effort to rein in payday loans in the Assembly in 2009 and 2010. He wanted to pass tougher measures, but was stymied by Senate Democrats.

Rather than giving out payday loans, many lenders are now offering installment loans. There are no limits on how much they can lend people or how many installment loans they can make to each customer. They do not have to check whether borrowers have the ability to repay the installment loans or enter them into a state database, as they do with payday loans, noted Peter Koneazny, a lawyer with the Legal Aid Society of Milwaukee, another group that assists people when they get behind on loans.

Barb Wolf, a vice president with Chicago-based PLS Financial Services, said her firm has offered installment loans for years in Wisconsin. She said some consumers prefer them because they require consistent payments. That contrasts with payday loans, which have balloon payments when they mature. Some borrowers repeatedly renew payday loans, causing them to pay large fees without ever reducing the principal.

You know what you’re going to pay with installment loans, Wolf said. When it’s done, it’s done.

She maintained those who take out loans from her company are very wise consumers who do not borrow more than they can afford.

Wolf said the ratio of installment loans to payday loans her firm offers had not changed with the new state regulations, but was unable to provide figures.

Conneely, the attorney who works with borrowers, said she had seen a steady increase in installment loans since lawmakers began debating loan regulations in 2009.

State records suggest many lenders are offering something other than payday loans. As of October, there were 389 outlets in Wisconsin licensed to make payday loans. But only about half of them – 198 – made loans that qualified as payday loans and had to be reported to the state, according to records maintained by the state Department of Financial Institutions.

Those outlets issued about 14,000 payday loans in October worth about $3.9 million. They charged borrowers about $862,000 in interest. On average, the loans were $285 and had interest of $63.

One of Conneely’s clients from Reedsburg first took out a payday loan several years ago, when he needed car repairs. He thought he would be able to pay off the loan in six to eight months, but kept falling behind.

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He spoke to the Journal Sentinel on the condition that his name not be used because he is embarrassed about his financial situation. With Legal Action’s help, he sued the lender last year, arguing that the loan didn’t comply with the state regulations in effect at the time. The two sides disputed whether the loan – with an annual interest rate of more than 400% – was a payday loan or an installment loan. The man, 58, lost the case and is appealing.

He owes about $1,950, with interest rapidly accruing. That’s been impossible to pay off because he makes less than $1,100 a month in Social Security disability income, the man said.

What it is now is basically legalized loan sharking, he said. When you can charge rates as high as they do, that’s criminal.

Until 2010, Wisconsin was the only state that did not regulate payday loans. After a long debate, Democrats who controlled the Legislature at the time passed a bill that limited where payday loan stores could locate and limited payday loans to $1,500 or 35% of monthly income, whichever is less. The legislation also said borrowers could have only one payday loan open at a time and could renew each one only once. Critics said borrowers got caught in an unending cycle of debt when they took out multiple loans or repeatedly rolled over a loan.

The law, which took effect in December 2010, established a state database for tracking payday loans. That was necessary to ensure that lenders didn’t give borrowers more than one payday loan at a time. It also gave state officials their first detailed information on how many payday loans were being given out.

As passed by lawmakers, the legislation defined payday loans as loans that were for 90 days or less and were secured with postdated checks or authorizations for electronic bank transfers. Doyle used his veto pen to strike the part of the definition that referred to 90 days – an action that put far more loans under the state regulations.

But Republican lawmakers and GOP Gov. Scott Walker put the 90 days back into the definition last year, and that made it easier for lenders to get around the rules, said Tom Feltner, director of financial services from the Consumer Federation of America, a consumer interest group based in Washington, D.C. Any loan that has a term of more than 90 days is not subject to the payday lending regulations.

That’s a signal to the industry that the best way to get around the restrictions is to make a loan of 91 days or more, Feltner said.

Another one of Doyle’s partial vetoes banned loans secured by vehicles, which critics have said are particularly harsh because borrowers who default on them risk losing their means of getting to work. Republicans also reversed that veto last year, re-establishing the ability of lenders to make auto title loans.

The industry fought the regulations, sending 30 lobbyists to the Capitol and spending $669,000 on lobbying in 2009 alone. Even now, at least eight lobbyists are still registered with the state. PLS was the only lender that responded to the Journal Sentinel’s inquiries for this story.

Lenders have also spent heavily on Wisconsin campaigns . Officials with one title lending firm over the past year gave $24,000 to Assembly GOP candidates and nothing to Democratic candidates.

Religious groups and advocates for consumers, the poor and seniors lobbied the Legislature in 2009 and 2010 to impose a 36% cap on interest rates on all loans, but the cap couldn’t get through either house.

That’s the biggest opportunity the Legislature lost, said Representative-elect Mandela Barnes (D-Milwaukee). A lot of people were convinced to vote against the interests of the people they represent.

Koneazny said the installment loans are harmful to vulnerable people but said they have some features that are better than payday loans that were given before the legislation passed. The old payday loans could be rolled over repeatedly, locking people into paying high fees without ever making headway on the principal.

Installment loans, by contrast, amortize and thus have a firm end date.

But the loans are not a good deal compared with traditional loans. Koneazny provided a copy of one loan agreement from First Rate Financial in Milwaukee that had an annual interest rate of 398%. The $200 loan was to be paid back with 13 payments over a year of $66.28 – costing the borrower $661.64 in interest.

The terms of installment loans are also clearer than payday loans because they tell borrowers the annual percentage rate and total interest cost, Koneazny said. But he added that many of the people who accept such loans are unsophisticated and unable to understand the ramifications of such loans.

He said installment loans often have interest rates of 500% or 600%. He said he had one client who acquired a loan over the Internet that had an interest rate of 1,000%.


Paycheck Loans


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Paycheck Loans

Borrowers can avail of paycheck loans one at a time. Unpaid previous paycheck loans from other companies will render a borrower ineligible to obtain another cash loan until the previous one is resolved. Default in payment of paycheck loans would make it very difficult for paycheck loan providers to stay in business. This is the reason why all legal remedies available are explored and are not merely limited to legal debt collection and civil court action. Borrowing privileges are terminated and such information will be turned over to the credit bureaus.

The cost of paycheck loans can be determined through the annual percentage rate or the APR. Many see the cost of paycheck loans as high as compared to other options but twice as many would probably accept such reality if it could present a reliable means of meeting unexpected financial needs that would otherwise prove disastrous if not met. The preference for paycheck loans over others would ultimately depend on whether it can answer the needs of its users at the time when it is needed. It also presents a dignified way of borrowing as opposed to asking from friends or relatives who may be facing their own financial emergencies.

Security is not an issue when applying for paycheck loans online since the protection of customer information is always a top priority of reliable paycheck loans providers. By the very nature of paycheck loans, borrowers would typically need the funds as soon as possible. Transfer of funds is usually done within the next business day from approval of a paycheck loan. However, limitations may arise due to the manner of posting of some banks and credit unions which may have been indicated by the borrower. Borrowers should be aware that there are existing scams that make use of the popularity of paycheck loans to achieve their objectives. The quick cash derived from paycheck loans should not be confused with the quick cash scams that prey on needy borrowers.