Loan

Credit News

APRA bank loan changes put the brakes on property investors, loan against property.#Loan #against #property


APRA bank loan changes put the brakes on property investors

The consensus among economists is that the housing boom has peaked, writes Larry Schlesinger.

The wheels might not have come off yet but the investor demand that has driven Australia’s property boom is starting to wobble.

This week’s announcement by the Australian Prudential Regulation Authority (APRA) that the big four banks and Macquarie Bank must hold more capital against their gargantuan mortgage books to provide a buffer against defaults will apply further pressure to housing growth. The banks are already increasing home loan rates to meet more expensive funding costs.

Combined with the blizzard of tougher lending policies already introduced by the banks this year, to slow down investor lending growth per bank to less than 10 per cent a year, the consensus among economists is that the housing boom has peaked.

Related Quotes

Company Profile

Property analysts say Sydney and Melbourne, where there has been the greatest acceleration in prices and where investors have dominated, will be hardest hit. House prices in Sydney have surged 20 per cent over the past year, and 10 per cent in Melbourne.

Brisbane, Adelaide, Hobart and Perth, where there has not been the same price growth, will not see the falls, analysts say. Darwin, hit by the slowdown in resources, has had little price growth this year. In Canberra, where house prices have increased by about 5 per cent over the 12 months to June, Domain senior economist Andrew Wilson expects more house buyer activity, although apartment prices are falling thanks to oversupply.

This is how much the banks have turned the screws on investors. All have reduced loan-to-value ratios (LVRs) on investor loans, with Westpac, the nation’s biggest lenders to investors, slashing its LVRs earlier this month from 95 per cent to 80 per cent (meaning a $200,000 deposit if you’re buying a $1 million dollar home). Investors must be able to service loans at higher than 7 per cent (a 2 per cent buffer), pushing more to the sidelines or requiring them to downsize their buying ambitions.

Banks have also removed mortgage discounts from investor loans and have cut back on offering riskier products such as interest-only loans. Some, such as ANZ Banking Group, have removed the cash-flow benefit of negative gearing from investment lending policies and both Commonwealth Bank of Australia and Westpac have reduced the proportion of rental income they will consider when assessing mortgage serviceability.

“Confidence from investors in markets like Sydney is going to start to wane,” says CoreLogic RP Data’s head of research, Tim Lawless. “There is a growing acceptance that the market has run its course.”

Weaker growth

Logically, fewer investors out there means less competition for property and less pressure on house price growth, which, according to economists including Paul Bloxham of HSBC and Shane Oliver of AMP Capital, has already peaked.

Both economists anticipate weaker levels of growth for the remainder of the year and into 2016, with expectations that prices will start falling from 2017 when the Reserve Bank of Australia could start raising rates again.

“If mortgage rates rise as a consequence of more stringent capital requirements on housing lending, this is likely to be a drag on housing activity because mortgage rates are still the key driver of activity in the established housing market,” Bloxham says.

Oliver, who expects prices to fall by between 5 per cent and 10 per cent in 2017, says it’s unclear yet what impact the APRA measures will have on the housing market. But he says the RBA and APRA both want to see a slowdown in lending to investors and more heat coming out of this market.

What the RBA does not want to see, Oliver says, is rising rates for existing mum and dad borrowers. The impact of this would go beyond the housing market into sectors such as retail spending. Were this to happen, both Oliver and Bloxham believe the RBA could cut rates to dampen the effects. “It’s a 50-50 call whether there’s another rate cut,” Oliver says.

The latest data from the country’s biggest mortgage broker, Australian Finance Group, which shows investors in NSW quitting the market in droves, suggests the cumulative impact of the changes is having the desired effect.

Its June-quarter figures show that the proportion of investor loans in NSW, consistently at about 50 per cent of all lending over the past 12 months, fell to 42 per cent over a three-month period. This is likely to affect investor buying across the country.

“Investor lending has returned to levels we are more used to,” AFG chief financial officer David Bailey says.

Depending on how much lenders increase rates due to the APRA changes, Bailey says it may bounce some people out of the market. “It’s very early days, but initial discussions with some lenders suggest increases of between 10 and 20 basis points.”

Other analysts, such as CLSA’s Brian Johnson, believe the rate rises could be higher but the clear message is that they are going up.

ANZ and CBA have already moved, announcing they will lift interest rates on a range of fixed and variable investment loans by between 10 and 40 basis points from August to ensure investment lending growth does not exceed APRA’s ceiling of 10 per cent.

But both banks will also cut rates by between 30 and 40 basis points on fixed-rate loans for owner-occupiers, with ANZ’s Australian chief executive, Mike Whelan, telling Fairfax Media there will be a heightened focus on “owner-occupier and first home buyers in the country”.

Period of uncertainty

Gerald Foley, managing director of National Mortgage Brokers, says first-time investors without the equity and cash flow to satisfy the banks’ new requirements will be the ones most affected.

More broadly, the changes are creating an unusual period of uncertainty between lenders and borrowers, particularly for investors who have employed a particular investment strategy.

“In the short term it won’t have a significant impact, but if there is a sustained period of continued tightening it will have an impact. It will take confidence out of the marketplace,” Foley says.

The winners out of all this, he says, could be first home buyers. “With some investors sitting on the sidelines, there may be better opportunities for first home buyers to acquire property, which is potentially part of the impact regulators want to see,” he says. “Banks still have money to lend and are offering sweeteners on the owner-occupier side.”

CoreLogic RP Data’s Tim Lawless believes there will be a correction, “but it won’t be of the magnitude that some commentators are forecasting – 20 to 30 per cent. It will be a gradual moderation.”

But certain pockets of the market are at greater risk of correction, he adds. “When you look at areas of the market most susceptible, it’s the investment markets where there is a lot of new supply – the inner-city apartment markets and the outer suburban greenfield housing estates.”

Among the inner-city investor-dominated apartment markets, Lawless points to Melbourne, where there is much greater geographic concentration around the central business district, Docklands and Southbank.

“The risk is much less in Sydney though, because dwelling approvals for apartments are not as high as Melbourne and the geographic distribution is much broader, spreading out to places like Parramatta, Lane Cove and Chatswood.”

Others, such as veteran mortgage market analyst Martin North, expect a “slightly negative impact on mortgage pricing” from the APRA changes, but do not believe there will be much impact on the broader housing market.

“House prices are a factor of supply and demand,” North says. “There is rising supply, but also strong demand. Compared to other asset classes housing is doing a lot better, plus there are all the tax concessions like negative gearing and the ability to offset capital gains.

“The supply of investment loans will still be there. Remember that not all banks are growing their investment lending at 10 per cent. Some will see it as a target. And there’s also the opportunity for the non-banking sector to fill the gap if the majors disappear from the radar.”

Foley says this is already happening: “We are seeing increasing appetite in the broker market for specialist lenders like Pepper, Liberty and LaTrobe who can better tailor deals in the current market.”


BOI Star Loan Against Property, loan against property.#Loan #against #property


loan against property

Skip to navigation | Skip to main content

Retail

Loan against property

Loan against property

Star Loan Against Property Scheme

  1. PURPOSE :

  1. To meet the credit needs of trade, commercial activity, other general business/profession, as also for their bona fide requirements;

  • To meet educational expenses of family members including near relatives

  • To undertake repairs/renovation/extension to the residential/commercial property;

  • To purchase / construct residential house/flat, purchase of plot of land for construction of house/ premises for business/commercial use *;

  • For Repayment of existing loans availed from other Banks / FI s conforming to the extant guidelines regarding takeover of account.

    1. Suitable declaration to be submitted by the applicant regarding the purpose.

  • The facility not extended for speculative purposes including investing in equities;

  • The facility is not extended to builders/developers/promoters/real estate agents for real estate activities such as purchase of land/construction with intent to sell or holding real estate stock for sale / re-sale purposes.

  • *Advance for purpose (d) above to be based on mortgage of property already owned by the proponent.

    People engaged in trade, commerce and business, professionals, self-employed, individuals with high net worth, salaried people, Proprietary firms, Partnership firms, Companies (Pvt. /Public Ltd.,) HUFs (excluding partnership firms where HUF is a partner), Societies, Staff members, NRIs- subject to compliance of Bank s/RBI guidelines.

    a) Individuals in permanent service max. 60 years.

    b) For Proprietary concerns/Self Employed/non-salaried people Maximum -70 Years

    (Age limit is the maximum age at the end of the repayment Period);

    Demand/Term Loan , Overdraft (Reducible/Non-Reducible)

    The quantum of advance to be related to the value of security, margin requirement , take home pay and repayment capacity of the proponent , subject to limits as under :-


  • BOI Star Loan Against Property, loan against property.#Loan #against #property


    loan against property

    Skip to navigation | Skip to main content

    Retail

    Loan against property

    Loan against property

    Star Loan Against Property Scheme

    1. PURPOSE :

    1. To meet the credit needs of trade, commercial activity, other general business/profession, as also for their bona fide requirements;

  • To meet educational expenses of family members including near relatives

  • To undertake repairs/renovation/extension to the residential/commercial property;

  • To purchase / construct residential house/flat, purchase of plot of land for construction of house/ premises for business/commercial use *;

  • For Repayment of existing loans availed from other Banks / FI s conforming to the extant guidelines regarding takeover of account.

    1. Suitable declaration to be submitted by the applicant regarding the purpose.

  • The facility not extended for speculative purposes including investing in equities;

  • The facility is not extended to builders/developers/promoters/real estate agents for real estate activities such as purchase of land/construction with intent to sell or holding real estate stock for sale / re-sale purposes.

  • *Advance for purpose (d) above to be based on mortgage of property already owned by the proponent.

    People engaged in trade, commerce and business, professionals, self-employed, individuals with high net worth, salaried people, Proprietary firms, Partnership firms, Companies (Pvt. /Public Ltd.,) HUFs (excluding partnership firms where HUF is a partner), Societies, Staff members, NRIs- subject to compliance of Bank s/RBI guidelines.

    a) Individuals in permanent service max. 60 years.

    b) For Proprietary concerns/Self Employed/non-salaried people Maximum -70 Years

    (Age limit is the maximum age at the end of the repayment Period);

    Demand/Term Loan , Overdraft (Reducible/Non-Reducible)

    The quantum of advance to be related to the value of security, margin requirement , take home pay and repayment capacity of the proponent , subject to limits as under :-


  • Chicagoan Files Class Action Suit Against Americash (UPDATED) #loan #companies #for #bad #credit


    #americash loans
    #

    Chicagoan Files Class Action Suit Against Americash (UPDATED)

    In June of last year, Kevin Johnson needed some quick cash for an emergency. He stopped by an Americash Loans outlet in his Chicago neighborhood and did what many Illinois consumers do daily: took out a short-term $700 loan. Under the agreement Johnson signed, Americash required him to pay back the loan in 24 semi-monthly installments of $105.30 for one full year, totaling $2,611 dollars, equivalent to a 365 percent annual interest rate. After making steady payments for 6 months, Johnson just couldn’t dig up the necessary funds to pay off his increasing debt. So Americash provided him a second loan in February of this year for $400 dollars and with virtually the same terms. Now, if he pays off both loans on time and in full, he will have forked over almost $3,500 to Americash, all for $700 in short-term financial assistance.

    In a state with payday lending regulations on the books, how did Americash manage to trap Johnson in this cycle? They simply stretched the terms of his loan beyond the 120-day limit by which the state defines a “payday loan,” instead distributing the funds as a consumer installment loan. which are virtually unregulated here*.

    To Johnson, that difference is meaningless. Last Thursday, he filed a class action complaint (PDF) against Americash in a Chicago circuit court. He, along with attorneys Tom Geoghegan and Mike Persoon (of Despres, Schwartz, and Geoghegan) and Robert Cohen and Scott Frankel (of Frankel and Cohen), argue that evading the payday lending legal definitions doesn’t change the nature of the loan. As such, it should be subject to the provisions of the 2005 Payday Loan Reform Act. “They have no legitimate economic purpose for stretching out these loans except to avoid the act,” Geoghegan tells us. “It’s just a subterfuge.”

    Geoghegan has a point. Prior to the 2005 law, it was common for payday loans providers to roll over a borrower’s initial loan, essentially allowing the consumer to re-borrow enough money to pay off the original debt if they needed to. The loan period, in other words, would start at 14 days and extend considerably longer, often in excess of 120 days. While PLRA explicitly banned this practice, consumer installment loans just institutionalize it. And that’s more dangerous for the consumer. “It’s actually a grosser violation to lock people into these long-term agreements than for a shorter period of time, as they did before 2005,” says Geoghegan.

    Johnson also contends that Americash violated the state’s Consumer Fraud and Deceptive Practices Act, which prohibits the use of business practices that “violate the public policy of Illinois, or are unconscionable or unfair or inflict substantial injury upon a consumer.” Specifically, the suit argues that when Johnson signed his loan contract, it contained an arbitration clause — nearly impossible to read without a magnifying glass — that misleadingly suggested he would not be charged legal fees in the event that the loans needed to be settled in an arbitration negotiation — this despite the fact that Americash knew he could not afford such expenses. If their suit succeeds, Johnson and other Americash customers who paid more than five percent interest on their loans would be reimbursed.

    Meanwhile, legislators in Springfield are still working to close the loophole that led to these abuses. Rep. Julie Hamos (D-Evanston) told bloggers on a conference call last Thursday that she expects her bill aimed at reforming the Consumer Installment Loan Act — which passed the Senate in April — to come up for a vote in the House this week. If approved, it would cap interest rates on installment loans at 99 percent APR, index the loans based on a borrower’s ability to pay, and would require loans to be paid off in equal monthly installments with no balloon payments.

    As that 99 percent rate cap indicates, the lawmakers are going well out of their way to assuage the industry.  Nonetheless, Americash — which donated $81,000 in state campaign contributions between 2005 and 2008 — is working hard to block the bill. “When you put us out of business,” Americash CEO Jill Gruchot told the Pantagraph a few weeks ago, “where are these consumers going to go?”

    Gruchot’s question spurs a more relevant one: Should all “consumers” — regardless of income or credit histories — have access to immediate credit?

    UPDATE: We got the following email from Steven Schlein, spokesperson for the Community Financial Services Association. a national association of payday lenders, in response to our original headline (which read “Chicago Files Class Action Suit Against Americash”):

    Americash is NOT a payday lender.  It is a company that makes installment loans.  These are an entirely different service.

    That’s technically true under the definition of payday loan set out in the 2005 law.  But the whole point of the Johnson suit is that these are the same lenders and the same class of customers — all under the guise of a “different service.”  Indeed, Americash issued payday loans in Illinois prior to 2005.  (Schlein confirmed in a subsequent email that they were previously a CFSA member.) After the new law was enacted, they reworked their lending model — switching to installment loans — to evade the reform.  But their marketing, application criteria, and sky-high interest rates are all extremely similar.  The same goes for the devastation they cause.

    *CORRECTION. This post originally stated that Americash stretched the terms of Johnson’s loan “one day” beyond 120 days.  In fact, Johnson’s payment schedule was laid out over 12 months.  We apologize for the error. Thanks to reader AL for pointing it out.


    Loan Against Property, Mortgage Loan Interest Rates, Property loan #educational #loan


    #housing loan interest rates
    #

    Salient Features :

    All documents to be self attested.

    Fees and Charges

    The following is an indicative list of fees / other charges / outgoings that are payable depending on the nature of the loan availed (*):

    Processing fees

    Up to 1.50% of the loan amount or Rs. 3,000 whichever is higher, plus applicable taxes.

    Prepayment charges
    Fixed First Rate Loan

    There will be no prepayment charges payable for any amount up to and including 25% of the opening principal balance for a given financial year.

    However any part prepayment in excess of 25% or full prepayment shall bear a prepayment charge of 2%, plus applicable taxes, of the amounts being so prepaid (such amounts shall include all amounts prepaid during the given financial year).

    Adjustable Rate Loan

    For all loans sanctioned to individual customers:

    No prepayment charges shall be payable on account of part or full prepayments.

    For all other loans:

    There will be no prepayment charges payable for any amount up to and including 25% of the opening principal balance for a given financial year.

    However any part prepayment in excess of 25% or full prepayment shall bear a prepayment charge of 2%, plus applicable taxes, of the amounts being so prepaid if the prepayment is made within 3 years from the date of first disbursement of the loan (such amounts shall include all amounts prepaid during the given financial year).

    There will be no prepayment charges payable for any part prepayment if such a part prepayment is made after 3 years from the date of first disbursement of the loan.

    Full prepayment made after 3 years from date of first disbursement of the loan shall bear a prepayment charge of 2%, plus applicable taxes, of amounts being so prepaid if source of such prepayment is by the way of borrowing from a Bank / Housing Finance Company (HFC) / Non Banking Financial Company (NBFC) or Financial Institution. (such amounts shall include all amounts prepaid during the given financial year).

    You shall be required to submit a Prepayment Request Letter along with copies of your Bank Statement or any other document that HDFC deems necessary to ascertain the source of funds used for the prepayment.

    Conversion fees

    We offer our existing customer the option to reduce the applicable rate of interest on the loan (by changing the spread or switching between schemes) through our Conversion Facility. You can take advantage of this facility by paying a nominal fee and opt for either reducing your monthly instalment (EMI) or loan tenure. Terms and conditions apply.

    To avail of our Conversion Facility and to discuss the various available options either click here to allow us to call you back or log on to our Online Access for Existing Customers. to get your loan account information 24×7.

    The following options of conversion are available to an existing customer of HDFC:

    Switch From Fixed First Rate Loan (During The Period Of Fixed / Initial Rate Of Interest) To The Normal Adjustable Rate Loan:

    Under the Fixed First product, during the fixed rate term, you have the option to convert to the normal adjustable rate loan on payment of an upfront conversion fee of 2.00% of the principal outstanding plus the undisbursed amount plus applicable taxes.

    Switch From Fixed First Rate Loan (During The Period Of Adjustable Rate Of Interest) To The Normal Adjustable Rate Loan:

    Under Fixed First product, during the adjustable rate term, you have the option to convert to the normal adjustable rate loan on payment of an upfront conversion fee of up to 0.50% of the principal outstanding plus the undisbursed amount plus applicable taxes.

    Switch From Normal Adjustable Rate Loan To Fixed First Rate Loan:

    You have the option to convert an existing adjustable rate loan to a Fixed First rate loan on payment of an upfront conversion fee of up to 0.50% of the principal outstanding plus the undisbursed amount plus applicable taxes.

    Switch To A Lower Interest Rate In The Adjustable Interest Rate Option:

    You have an option to convert your existing adjustable rate to HDFC’s current adjustable rate by effectuating a change in the spread as indicated in the loan agreement.

    The fee payable shall be 50% of the difference of the two coupon rates subject to a minimum fees of 0.50% of the principal outstanding being converted. The fee shall be up to a maximum of 1.50% of the principal outstanding being converted, plus applicable taxes.

    In case of a partly disbursed loan, the fee payable shall be on the principal outstanding plus the undisbursed loan amount.

    Cheque Dishonour Charges

    Rs. 200**

    Fees on account of external opinion

    Fees on account of external opinion from advocates/technical valuers, as the case may be, is payable on an actual basis as applicable to a given case. Such fees is payable directly to the concerned advocate / technical valuer for the nature of assistance so rendered.

    The customer shall pay the premium amounts directly to the insurance provider, promptly and regularly so as to keep the policy / policies alive at all times during the pendency of the loan.

    Delayed payment of interest or EMI shall render the customer liable to pay additional interest up to 24% per annum.

    Incidental charges expenses are levied to cover the costs, charges, expenses and other monies that may have been expended in connection with recovery of dues from a defaulting customer. A copy of the policy can be obtained by customers from the concerned branch on request.

    All applicable charges on account of Stamp Duty / MOD / MOE / Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) or such other statutory / regulatory bodies and applicable taxes shall be borne and paid (or refunded as the case may be) solely by the customer. You may visit the website of CERSAI for all such charges at www.cersai.org.in


    Apply for Loan against Property – Kotak Mahindra Bank #1500 #loan


    #loan against property
    #

    1800 102 6022

    What is the maximum amount I can borrow?

    In case of Commercial Property Loans or Loans against an existing property you can borrow up to 55% of the cost of the property

    How will my loan eligibility be determined?

    Your repayment capacity as determined by Kotak Mahindra Bank will help decide how much you can borrow. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependent’s, spouse’s income, assets, liabilities, savings history and stability, and continuity of occupation.

    In how many years can I repay the loan amount?

    You can opt for a loan period of up to 12 years, which can vary depending on the purpose of the loan and your profile.

    Who can be my co-applicant?

    If you are an individual – your spouse, your parents, or even your major children can be your co-applicants. The co-owner of a property has to be a co-applicant, but a co-applicant need not be the co-owner of the property.

    When will the loan be disbursed?

    You can take the disbursement after credit, technical and legal appraisals of the property have been done, besides execution of relevant documents deposit of original property documents is required to be completed prior to disbursement. Further, you should have invested your own contribution amount towards the property. ‘Own contribution’ is the difference between the cost of the property and the loan amount.

    In how many installments can the loan be disbursed?

    The loan will be disbursed in full or in suitable installments taking into account requirement of funds and progress of construction, as assessed by Kotak Mahindra Bank.

    Does the agreement for sale have to be registered?

    Yes, very much so. In many states in India, the agreement for sale between the builder / seller and the purchaser is required by law to be registered. You are advised, in your own interest to lodge the agreement for sale at the office of the Sub-registrar appointed by the State Government under the Indian Registration Act, 1908.

    Does the property have to be insured?

    Your home is your pride and joy. Don’t let unplanned events take it away. Property insurance will take care of home in case an unforeseen event strikes. That way, you’ll always have peace of mind knowing that you and your loved ones will be assured of a roof over their heads.

    What kind of security is required?


    Apply for Loan Against Property #land #loan #rates


    #loan against property
    #

    What Is Loan Against Property

    Loan against property (LAP), are basically loans provided by banks against the security of one s own property. LAP is designed to meet the financial needs of someone who already owns a house or multiple properties so as to get the best out of their assets. Its important to remember that the property which you are putting up for your loan should be free any encumbrance (i.e. it is not given as security for any purpose or any other loan).

    Banks provide LAP for both Salaried as well as Self-Employed individuals. The rates and loan amounts differ based on your property and your annual income.

    Banks will always want to consider all risks, which is why while you are applying for your loan against property, there are certain factors the bank considers with respect to your property to mitigate its risks in giving out the loan. These factors determine your rate of interest, and loan amount. You can get a LAP of up to 80% of the registered value of your property depending on the Bank’s policy and the property type and valuation.  The value of the property would be determined through a valuation conducted by the Loan Provider.

    Individuals apply for LAP for a variety of reasons. Some of the common ones are your childs wedding, loans for new business ventures, second homes, vacations, medical treatment just to name a few.

    How To Apply For Loan Against Property

    • Application
    • Processing
    • Documentation
    • Property Verification/Valuation
    • Sanctioning of the Loan
    • Disbursement

    Important Questions on Loan Against Property

    What kind of processing fee do you need to pay for Loan Against Property?

    A nominal fees and charges are to be paid to the Bank depending upon their term and conditions.

    How much time does the bank take to disburse the loan?

    The processing of the loans usually takes 7 to 10 working days once all the documents are submitted. It also depends upon your profile and documentation.

    How is interest charged on Loan Against Property?

    Some financial institutions make LAP available only under the floating rate. Fixed rate loans are off limits. Borrowers need to enquire before finalising a LAP from lending institutions.

    It is normally available for residential properties only, but can be available for commercial property also.

    Does the property have to be insured?

    Yes the property has to be insured against fire, flood, earthquakes and other appropriate hazards during the tenor of the loan.

    How can I repay my loan?

    The repayment of loan is done through Equated Monthly Instalments. It can be paid through Post Dated Cheques (PDC) or Electronic Clearance System (ECS).

    Can I pre-pay my loan?

    The loan against property can be pre-paid along with the pre-payment charges. Usually the bank charges 2% of the principal pre-paid.


    Insurance Fraud – FBI #coalition #against #insurance #fraud


    #

    Insurance Fraud

    Insurance Fraud

    A Basic Overview

    The insurance industry consists of more than 7,000 companies that collect over $1 trillion in premiums each year. The massive size of the industry contributes significantly to the cost of insurance fraud by providing more opportunities and bigger incentives for committing illegal activities.

    The total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year. That means Insurance Fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums.

    • Premium diversion is the embezzlement of insurance premiums.
    • It is the most common type of insurance fraud.
    • Generally, an insurance agent fails to send premiums to the underwriter and instead keeps the money for personal use.
    • Another common premium diversion scheme involves selling insurance without a license, collecting premiums and then not paying claims.
    • In fee churning, a series of intermediaries take commissions through reinsurance agreements.
    • The initial premium is reduced by repeated commissions until there is no longer money to pay claims.
    • The company left to pay the claims is often a business the conspirators have set up to fail.
    • When viewed alone, each transaction appears to be legitimate only after the cumulative effect is considered does fraud emerge.
    • Asset diversion is the theft of insurance company assets.
    • It occurs almost exclusively in the context of an acquisition or merger of an existing insurance company.
    • Asset diversion often involves acquiring control of an insurance company with borrowed funds. After making the purchase, the subject uses the assets of the acquired company to pay off the debt. The remaining assets can then be diverted to the subject.

    Workers Compensation Fraud

    • Some entities purport to provide workers compensation insurance at a reduced cost and then misappropriate premium funds without ever providing insurance.

    Scam Spotlight Disaster-Related Fraud: Hurricane Katrina

    Massive Storm, Massive Cost

    • In late August 2005, Hurricane Katrina made landfall along America s Gulf Coast.
    • The storm caused approximately $100 billion in economic damages.
    • Approximately 1.6 million insurance claims were filed, totaling $34.4 billion in insured losses.
    • Of the $80 billion in government funding appropriated for reconstruction, it is estimated that Insurance Fraud may have accounted for as much as $6 billion.

    Disaster Fraud Schemes

    • False or exaggerated claims by policyholders.
    • Misclassification of flood damage as wind, fire, or theft.
    • Claims filed by individuals residing hundreds of miles outside the disaster-zone.
    • Bid-rigging by contractors, falsely inflating the cost of repairs.
    • Contractors requiring upfront payment for services, then failing to perform the agreed upon repairs.
    • Charity fraud scams designed to misappropriate funds donated for disaster relief.

    The Government Response

    • On September 8, 2005, the Attorney General created the Hurricane Katrina Fraud Task Force (HKTF).
    • The HKTF was designed to deter, investigate, and prosecute disaster-related federal crimes.
    • The HKTF has a zero-tolerance policy for fraud related to Hurricane Katrina.
    • In one Katrina-Related fraud case alone, the FBI received more than 70 indictments and over 60 guilty pleas (as of March 2007).

    Insurance Fraud Resources

    For more information about Insurance Fraud or where to report it, contact the following organizations.

    Check to see if your state sponsors a fraud bureau that investigates insurance fraud most states do. You may even be eligible for a reward if you report a scam.

    Go directly to the insurer you think is being defrauded. Some companies have systems in place for reporting fraud. If the company doesn t have a reporting system or fraud hotline, call or write the company headquarters.

    National Insurance Crime Bureau (NICB)

    The NICB is a non-profit organization that partners with insurance companies and law enforcement to help identify, detect, and prosecute insurance criminals. The NICB web site is an excellent source of information.

    Coalition Against Insurance Fraud (CAIF)

    The CAIF is a national alliance of consumer groups, public interest organizations, government agencies, and insurers dedicated to preventing insurance fraud. The CAIF website offers a wealth of information for consumers.

    National Association of Insurance Commissioners (NAIC)

    The NAIC assists state insurance regulators in serving the public interest and achieving regulatory goals. You can find numerous fraud resources on the NAIC website.

    Individuals are always encouraged to report Insurance Frauds to their local FBI offices.

    Section Links


    United Cash Loans – What are the complaints against them? #home #loans #calculator


    #united cash loans
    #

    United Cash Loans – What are the complaints against them?

    Rated 5 by 7626 members

    [Join discussion ]

    United Cash Loans is a payday loan company that claims to offer quick cash to borrowers. Consumers dealing with this company have a lot of complaints. Read through the section below to know more about these complaints.

    What are the United Cash Loans complaints?

    There are many consumers who have shared their bitter experience with United Cash Loans in the DebtCC forums. They have the following complaints against this company:

    • Debiting money even after loan is paid. Some consumers claim that the company kept debiting their accounts even after the loan amount was paid. One such consumer says that he took a loan of $300 from the company. They kept renewing his loan and debited his account for a total of almost $900! Read more .
    • Not licensed to lend. Consumers allege that the company is not licensed to lend in many states like Nevada, Oklahoma, etc. They often violate the laws regarding lending and thus, they pose a threat to those taking loans from this company. Know more .
    • Withdrawing extra money. United Cash Loans is accused of withdrawing extra money from customers’ accounts. A customer says he took out a loan of $200 and the company was withdrawing $60 every two weeks. But suddenly they started withdrawing $80-100! He ended up paying them over $600 for the loan! Find more on this .
    • Unauthorized withdrawal. A customer made arrangements to pay the company $135 from his bank account to repay a loan. But later on, the company took another $105 which was not authorized by the customer. On contacting, the company told him that he made arrangements to pay $105 and they did not do anything illegal. But he insists that he had authorized the withdrawal of only $135! Check out for more .
    • Harassing calls. Customers complain of getting harassing calls from United Cash Loans. A customer says he paid well over $700 for a loan of just $200. He had to close his account as the company had drained his funds. But even then, he kept on receiving harassing calls from the company. He was also threatened that a lawsuit would be filed against him. Know more .
    • Rude behavior. People say that United Cash Loans customer service is not good. A person complains that the company renewed his loan 7 times illegally and charged him more than they should have. When he called the company regarding this, the representative talked to him in a rude manner. Find the details .

    If you need to contact this company, you may find the following details useful:

    United Cash Loans Address:


    Clearwater Criminal Defense Lawyer – Pinellas County, Florida DUI Defense Attorney – Hanlon Law #call #(727) #897-5413, #hanlon #law #aggressively #represents #the #accused #against #charges #in #criminal #defense #& #dui #defense #cases.


    #

    Clearwater Criminal Defense Lawyer

    The Hanlon Law Firm

    Clearwater Criminal Defense Attorney Fighting for Your Future

    Hanlon Law provides knowledgeable and tenacious representation to people in the Tampa Bay area who have been charged with a wide variety of crimes. A conviction may change the lives of both a defendant and their family, so it is critical to assert your rights as vigorously as possible throughout the criminal justice process. Advocating for people in Clearwater, criminal defense lawyer Will Hanlon has more than two decades of experience in these cases and a strong track record of success for the people who seek his assistance. Our firm works tirelessly to investigate the unique circumstances of each case and craft a legal strategy accordingly. We walk clients through the process with personalized and compassionate attention.

    Vigorous Representation Against the Prosecution

    Time is of the essence in criminal cases, whether they are based on allegations of domestic violence, a sex offense, a DUI, or a drug crime. Whether you have been charged with a crime or simply questioned as a suspect, it is vital that you have an experienced criminal defense lawyer at your side as early as possible. However, you should remember that just because you have been questioned, arrested, or charged does not mean that you will be convicted. The burden is on the prosecution to prove beyond a reasonable doubt that you committed the crime for which you are charged. This is the highest standard of proof in the U.S. legal system.

    Useful defenses in many cases revolve around whether police officers followed appropriate procedures and complied with constitutional requirements in how they interacted with the defendant. Police must have a reasonable suspicion to believe that a crime is being or recently has been committed to stop you on the street or pull over your car. They may search you for weapons during a stop, but only if they have a reasonable suspicion that you may be armed. If police want to search your home or car without a warrant, they must have probable cause to believe that a crime is or has occurred. Although there are some exceptions to that rule, they raise complicated legal questions that should be considered in consultation with an experienced criminal defense attorney.

    Even if you qualify for a public defender, it pays to have a private attorney on your case. A criminal conviction carries a possibility of significant fines and jail time that could cost you your job and create a stigma that may undermine your professional career. In sex crime cases, for example, a conviction means that you must register with the state as a sex offender. That information is posted to a public website, meaning that friends, family, neighbors, and co-workers will be able to find out about your record. An accomplished criminal defense attorney can help you fight these charges by ensuring that a judge or jury gets to hear your side of the story. This may involve presenting exonerating evidence from alibi and character witnesses.

    Although many public defenders are very capable, most are overworked and have a strong incentive to resolve as many cases as possible as efficiently as possible. This may not always be the best strategy for an individual defendant. By contrast, a private attorney has the time and resources to build a thoughtful defense and take a case to trial if necessary.

    Seek Guidance from a Criminal Defense Attorney in the Clearwater Area

    If you need a sex crime lawyer or representation against charges of violent crimes, drug offenses, DUI, or other crimes, Hanlon Law is ready to fight for your future. Clearwater criminal defense lawyer Will Hanlon understands the stress that comes with being suspected of or charged with a crime. He leaves no stone unturned in crafting defenses for the people whom he represents. You should not take a chance with your freedom and your future. We serve defendants throughout the Tampa Bay region, including in St. Petersburg, Tampa. and surrounding cities. Call us at 727.897.5413 or contact us online to discuss your case with a seasoned criminal defense lawyer.