Payday lending is legalized loan-sharking. Actually, the Mob gives better interest rates. But sometimes people just need credit, and damn the interest rates.
Compared to a payday loan, Billfloat is a steal. Instead of paying, say, 360% interest, Billfloat may be only 150% (see Billfloat’s chart, at right).
For all the flack the credit card industry (rightly) gets, the highest interest rate you are likely to see from more credit cards is 30%. That’s a bargain compared to the payday lending industry. If you have to float a bill, use a credit card, not Billfloat.
(Thanks, Dan!)
http://www.alfranken.com/pages/meet_al/
Background: Minnesota debt collectors sue like crazy and manipulate the courts to land debtors in jail. The Star-Tribune’s Chris Serres tells it like it is. Senator Al Franken gets pissed and tells the FTC to get with the program.
A month later, the FTC responded to Senator Franken’s letter. In sum, the FTC’s letter reads thus: “We’re doing some stuff. But yeah, what’s going on in Minnesota doesn’t sound right. And hey, it wouldn’t hurt to add some protections to the Fair Debt Collection Practices Act.”
It’s kind of a weak response. I think the FTC is just hoping this goes away so it doesn’t have to do anything. It didn’t bother making concrete recommendations, for example. And the FTC’s statement that “The Demand for Disclosure contains a clear and prominent statement . . . .” Is just wishful thinking. Legal forms rarely contain clear statements of anything, and the collection forms are particularly obtuse.
Here’s hoping that Senator Franken doesn’t let this die.
http://www.flickr.com/photos/respres/2539334956/
Topping the
list of things that consumers were pissed off about last year were an old consumer predator and a new one. Car dealers stayed comfortably at the top of the list. But foreclosure relief consultants, a symptom of the foreclosure epidemic, moved the “credit/debt” category up into second place. They pushed shoddy construction contractors down into third.
Foreclosure relief consultants have been around for a long time, but with the explosion in foreclosures over the last few years, they have multiplied like rabbits. Since foreclosures are announced publicly, it makes foreclosed soon-to-be-non-homeowners easy targets for mass mailings. Most experience a deluge of “SAVE YOUR HOME” offers right after the notice of foreclosure.
Apparently, it can get annoying.
(thanks, Consumerist)
http://www.flickr.com/photos/shawnzlea/527857787/
The market works well when everyone understands what they are buying and selling. But credit cards are complicated financial products. Few consumers can make an intelligent comparison of one card to another. That is a big part of why credit card companies have gotten away with charging
ridiculous fees, double-cycle billing, and other transgressions over the years. Nobody knows what they are, and there may not be alternatives, anyway.
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The Cheapskate Next Door
Saving money is like losing weight: there’s really no secret. You just consume less, and a little exercise doesn’t hurt. When it comes to saving, exercise means self control, though it is just as hard to stick to. In
The Cheapskate Next Door, Jeff Yeager talks about being “the Ultimate Cheapskate,” and his search for other cheapskates.
He found some interesting things. Budgeting may be important, but only 10% of the 300 cheapskates Yeager talked to actually have a budget. He also found that being a cheapskate doesn’t mean being a miserable hermit. Yeager’s cheapskates save, instead of spending, and value experiences over things.
And guess how they answer this question: “Someone drops a million bucks on you tomorrow, how would it change your life?” 9 out of 10 cheapskates say it wouldn’t change their lives one bit. That’s the mark of a true cheapskate.
http://www.flickr.com/photos/quinnanya/3517363882/
We are constantly working on making Caveat Emptor a better place for consumers to find information about their rights and options. Since
talking to a lawyer as soon as possible is usually the most important part of resolving any consumer problem, we wanted to make it easier by at least one click. Now you can find
consumer and
bankruptcy lawyers right here on Caveat Emptor!
All of the consumer and bankruptcy lawyers in our directory are members of either the National Association of Consumer Advocates (NACA) or the National Association of Consumer Bankruptcy Attorneys (NACBA). Additionally, we do a basic check to ensure no lawyers in the directory have been subject to public discipline.
When you contact a consumer or bankruptcy attorney listed on Caveat Emptor, you can expect:
- A response to your inquiry within one business day;
- A free phone call or e-mail exchange to find out it the attorney can help; and
- If the attorney cannot help you, a referral to a lawyer who can.
If you are a consumer or bankruptcy attorney interested in joining our database, here are the details.
http://www.flickr.com/photos/worldofoddy/399166354/
18 “free” credit report websites have been warned by the FTC to shape up, or they will be fined $3,500 per violation. Most require people to sign up for a paid service in order to get a “free” credit score or credit reports.
FreeCreditScore.com, which is probably the best-known “free” faker now charges $1 despite the name, so that it does not have to follow the FTC’s rule:
[W]ebsites offering free credit reports must have a disclosure, with links to AnnualCreditReport.com and FTC.gov, that appears across the top of each page that mentions free credit reports. Violators are subject to legal action that can result in penalties of up to $3,500 per violation.
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http://www.flickr.com/photos/teflon/428380877/
If you want to save money, keep your hands to yourself.
If you touch something, you are more likely to buy it. That’s why Best Buy lets you play with practically everything in the store. And why clothing stores put fuzzy things right at waist level so you can reach them easily.
To avoid this subtle persuasion, you could just stay out of stores and do all your shopping online. If that’s not practical (and let’s face it, it isn’t), go to stores with a list, and make a beeline for what you need, grazing results in touching, and you know what touching leads to.
If all else fails, my wife likes to put things in our cart while we do our shopping so that we can think about whether we really want it. This works surprisingly well for us. Ten or fifteen minutes later, the rush of picking up a new shiny gadget often wears off, and we can consider the purchase rationally. Often, it goes back on the shelf.
