An advocacy group is calling on lawmakers to enact tougher regulations for Kentucky's "payday" loan industry, saying it takes advantage of poor families who can't get short-term loans elsewhere.
Kentucky Youth Advocates released a study this week showing the short-term, high-interest loans cost Kentuckians $131 million a year in fees.
"Families use payday loans when they don't have other options," said Tara Grieshop-Goodwin, deputy director of the nonprofit advocacy organization. "But the terms of the loan make them nearly impossible to pay back."
Rep. Johnny Bell, D-Glasgow, said he agrees more regulation is needed and said he will file a bill this week aimed at imposing more restrictions on the payday loan business, which the advocacy group said has grown rapidly in recent years.
"We're trying to help some individuals get more of a fair return," Bell said.
Kentucky law allows loans of up to $500 for two weeks at a charge of $75.
Often, borrowers can't pay off the full amount, so they roll it over into a new loan -- with additional fees -- which would translate to an annual interest rate of 391 percent, according to the youth advocates' study.
More restrictions are needed to help "Kentucky's working families keep more of their income," said the organization's director, Terry Brooks.
Bell said his bill will propose increasing the loan period from two weeks to 30 days to give borrowers more time to repay the full amount.
It would also lower the fee lenders charge from $15 per $100 lent to $12 per $100.
And it would require more oversight of the industry through monitoring for compliance and a database to track information about payday loans. Similar measures have failed in past legislative sessions.
Bell said he doesn't want to eliminate payday loans -- as at least one state has -- but he does want to try to put in more protection for consumers.
source:http://www.courier-journal.com/apps/pbcs.dll/article?AID=/20080207/NEWS0101/802070403/1008/NEWS01
Friday, February 8, 2008
Sunday, February 3, 2008
No teletrack payday loans at cash advance payday loans
No teletrack payday loans are instant cash providers. Any individual can borrow the proposed amount of cash but by meeting certain principles of eligibility. The eligibility demands that applicants should be a salaried person and should own a valid bank account against his name. If any individual meet this laid principle then they can borrow cash between £100 and £1,200 for a short term. The short repayment term ends till 30 days from date of its approval. But flexibility of repayment is provided in this scheme. If any discrepancy occurs while repaying the cash then borrowers or customers can waive the due date. Borrowers can stretch their due date according to their convenience by paying an extra fee. Such fee charged is always excluded from interest rates.
Interest rates are reasonably calculated to make affordable for all. But if you collect and compare the loan quotes of different lenders then you can spot the low prevailing rates in the market. Or in a simple manner take the help of loan calculator and get a preview of your monthly instalments.
The cash assist you in making payments without getting delay. For instance: medical bills, booking of travel tickets, electricity bills, credit card bills, school fees, are such can be tackled easily with the cash of this scheme. Bad credit persons can also borrow the cash and also make payments of such ends in a better
source:http://www.pr-usa.net/index.php?option=com_content&task=view&id=59688&Itemid=9
Interest rates are reasonably calculated to make affordable for all. But if you collect and compare the loan quotes of different lenders then you can spot the low prevailing rates in the market. Or in a simple manner take the help of loan calculator and get a preview of your monthly instalments.
The cash assist you in making payments without getting delay. For instance: medical bills, booking of travel tickets, electricity bills, credit card bills, school fees, are such can be tackled easily with the cash of this scheme. Bad credit persons can also borrow the cash and also make payments of such ends in a better
source:http://www.pr-usa.net/index.php?option=com_content&task=view&id=59688&Itemid=9
Fast-cash tax returns come with price
Customers of CarBiz in Palmetto, which sells moderately priced vehicles to those with poor credit histories, can get their down payment financed on the spot with a tax return completed on-site.
Someone looking for a new bed or TV set can do the same thing at Buddy's Home Furnishings in Bradenton. The business issues customers an instant check for as much as $1,500 for their tax returns with bank approval, said Division Manager Tom Bradley. The check comes in the form of a refund-anticipation loan, which does carry fees, Bradley said, although he declined to specify the fee structure.
"The banks have to set their own fees," Bradley said. "They're fully disclosed at the time they (customers) request it."
Partly out of consumer necessity and also because of the instant gratification factor, similar tax preparation arrangements seem to be cropping up more and more.
But some consumer groups suggest these arrangements take advantage of cash-strapped individuals who may not take the time to closely examine the fees associated with the deals.
The National Consumer Law Center estimated that 9 million taxpayers in 2006 received up-front refund-anticipation loans, shelling out more than $900 million in loan fees.
Those engaged in such tax preparation arrangements, however, argue that they are the only way some individuals could afford goods and services.
"We really only began that program this year and I expect and hope that it will grow next year," said Carl Ritter, chief executive officer of Sarasota-based CarBiz. "It simply is a service that makes it easier for customers to increase the size of their down payment to help them get financed in a vehicle."
Returns at CarBiz are prepared by employees of Tampa-based Tax Refund Services Inc., which charges a flat fee of $119 for the service. The amount of a return is estimated and all or part of the proceeds are refunded to CarBiz toward a down payment, Ritter said.
Tax preparers at Buddy's Home Furnishings are trained in tax preparation and do only simple tax returns, Bradley added.
Such services may be convenient but are they a reliable way of getting one's taxes prepared?
Hard to say, said Michael Dobzinsky, IRS spokesman for southern Florida.
"There's no regulation to stop a business from having that arrangement, whether it be a car dealer or a furniture store," Dobzinsky said. "We don't regulate that. It's not an IRS issue. But if you're asking me are these people any good, I don't know."
At the very least, there are a couple of questions consumers should ask, Dobzinsky said.
"I would ask what their educational background is and how much training they get each year to keep up with the law," Dobzinsky said. "Don't sign a blank return and have a tax preparer say, 'I'll fill it in later.' You definitely don't want to do that."
Payday lender Amscot Financial caters to individuals who want their tax return money right away.
The company charges customers seeking an immediate refund-anticipation loan of up to $1,000, a flat fee of $39, said Ian A. MacKechnie, executive vice president of the company.
source:http://www.bradenton.com/business/story/369836.html
Someone looking for a new bed or TV set can do the same thing at Buddy's Home Furnishings in Bradenton. The business issues customers an instant check for as much as $1,500 for their tax returns with bank approval, said Division Manager Tom Bradley. The check comes in the form of a refund-anticipation loan, which does carry fees, Bradley said, although he declined to specify the fee structure.
"The banks have to set their own fees," Bradley said. "They're fully disclosed at the time they (customers) request it."
Partly out of consumer necessity and also because of the instant gratification factor, similar tax preparation arrangements seem to be cropping up more and more.
But some consumer groups suggest these arrangements take advantage of cash-strapped individuals who may not take the time to closely examine the fees associated with the deals.
The National Consumer Law Center estimated that 9 million taxpayers in 2006 received up-front refund-anticipation loans, shelling out more than $900 million in loan fees.
Those engaged in such tax preparation arrangements, however, argue that they are the only way some individuals could afford goods and services.
"We really only began that program this year and I expect and hope that it will grow next year," said Carl Ritter, chief executive officer of Sarasota-based CarBiz. "It simply is a service that makes it easier for customers to increase the size of their down payment to help them get financed in a vehicle."
Returns at CarBiz are prepared by employees of Tampa-based Tax Refund Services Inc., which charges a flat fee of $119 for the service. The amount of a return is estimated and all or part of the proceeds are refunded to CarBiz toward a down payment, Ritter said.
Tax preparers at Buddy's Home Furnishings are trained in tax preparation and do only simple tax returns, Bradley added.
Such services may be convenient but are they a reliable way of getting one's taxes prepared?
Hard to say, said Michael Dobzinsky, IRS spokesman for southern Florida.
"There's no regulation to stop a business from having that arrangement, whether it be a car dealer or a furniture store," Dobzinsky said. "We don't regulate that. It's not an IRS issue. But if you're asking me are these people any good, I don't know."
At the very least, there are a couple of questions consumers should ask, Dobzinsky said.
"I would ask what their educational background is and how much training they get each year to keep up with the law," Dobzinsky said. "Don't sign a blank return and have a tax preparer say, 'I'll fill it in later.' You definitely don't want to do that."
Payday lender Amscot Financial caters to individuals who want their tax return money right away.
The company charges customers seeking an immediate refund-anticipation loan of up to $1,000, a flat fee of $39, said Ian A. MacKechnie, executive vice president of the company.
source:http://www.bradenton.com/business/story/369836.html
Friday, February 1, 2008
Fast-cash tax returns come with price
Customers of CarBiz in Palmetto, which sells moderately priced vehicles to those with poor credit histories, can get their down payment financed on the spot with a tax return completed on-site.
Someone looking for a new bed or TV set can do the same thing at Buddy's Home Furnishings in Bradenton. The business issues customers an instant check for as much as $1,500 for their tax returns with bank approval, said Division Manager Tom Bradley. The check comes in the form of a refund-anticipation loan, which does carry fees, Bradley said, although he declined to specify the fee structure.
"The banks have to set their own fees," Bradley said. "They're fully disclosed at the time they (customers) request it."
Partly out of consumer necessity and also because of the instant gratification factor, similar tax preparation arrangements seem to be cropping up more and more.
But some consumer groups suggest these arrangements take advantage of cash-strapped individuals who may not take the time to closely examine the fees associated with the deals.
The National Consumer Law Center estimated that 9 million taxpayers in 2006 received up-front refund-anticipation loans, shelling out more than $900 million in loan fees.
Those engaged in such tax preparation arrangements, however, argue that they are the only way some individuals could afford goods and services.
"We really only began that program this year and I expect and hope that it will grow next year," said Carl Ritter, chief executive officer of Sarasota-based CarBiz. "It simply is a service that makes it easier for customers to increase the size of their down payment to help them get financed in a vehicle."
Returns at CarBiz are prepared by employees of Tampa-based Tax Refund Services Inc., which charges a flat fee of $119 for the service. The amount of a return is estimated and all or part of the proceeds are refunded to CarBiz toward a down payment, Ritter said.
Tax preparers at Buddy's Home Furnishings are trained in tax preparation and do only simple tax returns, Bradley added.
Such services may be convenient but are they a reliable way of getting one's taxes prepared?
Hard to say, said Michael Dobzinsky, IRS spokesman for southern Florida.
"There's no regulation to stop a business from having that arrangement, whether it be a car dealer or a furniture store," Dobzinsky said. "We don't regulate that. It's not an IRS issue. But if you're asking me are these people any good, I don't know."
At the very least, there are a couple of questions consumers should ask, Dobzinsky said.
"I would ask what their educational background is and how much training they get each year to keep up with the law," Dobzinsky said. "Don't sign a blank return and have a tax preparer say, 'I'll fill it in later.' You definitely don't want to do that."
Payday lender Amscot Financial caters to individuals who want their tax return money right away.
source:http://www.bradenton.com/business/story/369836.html
Someone looking for a new bed or TV set can do the same thing at Buddy's Home Furnishings in Bradenton. The business issues customers an instant check for as much as $1,500 for their tax returns with bank approval, said Division Manager Tom Bradley. The check comes in the form of a refund-anticipation loan, which does carry fees, Bradley said, although he declined to specify the fee structure.
"The banks have to set their own fees," Bradley said. "They're fully disclosed at the time they (customers) request it."
Partly out of consumer necessity and also because of the instant gratification factor, similar tax preparation arrangements seem to be cropping up more and more.
But some consumer groups suggest these arrangements take advantage of cash-strapped individuals who may not take the time to closely examine the fees associated with the deals.
The National Consumer Law Center estimated that 9 million taxpayers in 2006 received up-front refund-anticipation loans, shelling out more than $900 million in loan fees.
Those engaged in such tax preparation arrangements, however, argue that they are the only way some individuals could afford goods and services.
"We really only began that program this year and I expect and hope that it will grow next year," said Carl Ritter, chief executive officer of Sarasota-based CarBiz. "It simply is a service that makes it easier for customers to increase the size of their down payment to help them get financed in a vehicle."
Returns at CarBiz are prepared by employees of Tampa-based Tax Refund Services Inc., which charges a flat fee of $119 for the service. The amount of a return is estimated and all or part of the proceeds are refunded to CarBiz toward a down payment, Ritter said.
Tax preparers at Buddy's Home Furnishings are trained in tax preparation and do only simple tax returns, Bradley added.
Such services may be convenient but are they a reliable way of getting one's taxes prepared?
Hard to say, said Michael Dobzinsky, IRS spokesman for southern Florida.
"There's no regulation to stop a business from having that arrangement, whether it be a car dealer or a furniture store," Dobzinsky said. "We don't regulate that. It's not an IRS issue. But if you're asking me are these people any good, I don't know."
At the very least, there are a couple of questions consumers should ask, Dobzinsky said.
"I would ask what their educational background is and how much training they get each year to keep up with the law," Dobzinsky said. "Don't sign a blank return and have a tax preparer say, 'I'll fill it in later.' You definitely don't want to do that."
Payday lender Amscot Financial caters to individuals who want their tax return money right away.
source:http://www.bradenton.com/business/story/369836.html
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