Monthly Archives: January 2015

What Are The Financial Ramifications For Bouncing A Check

Have you bounced a check? A debt collector can bring a criminal action against you

The Senate Banking Committee is considering a bill that could have a negative impact on consumers. This consumer un-friendly legislation should have you arming yourself with your pens (and key-boards) to protest the proposed revisions to the Fair Debt Collection Practices Act (‘FDCPA‘).

The Senate Banking Committee’s version of H.R. 3505 amends the Act to excuse some bad check enforcement programs currently under state regulatory oversight from federal regulatory oversight. Here is how it works –- Some state and local prosecutors use companies called “check-diversion” companies to help them collect on and reduce the number of bounced checks. If someone bounces a check they are sent a letter, often on the official letter-head of the prosecutor, telling them they must attend a check-restitution program, a fancy name for financial responsibility counseling program, operated by prosecutors in their local areas. They are also told they owe fees several times the amount of the bounced check, and if they don’t comply with the instructions they will be prosecuted. Prosecuted — For making a mistake?

No, we don’t think that people who write bad checks shouldn’t have to pay. But we also don’t agree that criminal prosecution is appropriate in most cases. This amendment as written, allows check-diversion companies to operate outside the Act because check-diversion companies and their activities will not fall under the statutory definition of ‘debt collection.’ Because of this exemption, check-diversion companies will be allowed, to use the punitive power of the local prosecutor’s office to:

• Force consumers to pay for checks that they may not even owe;
• Force consumers to pay exorbitant fees that are not authorized under state law;
• Subject consumers to threats of criminal prosecution for not paying for the checks.
Since check-diversion company activities are not considered to be ‘debt collection
‘ consumers will lose the rights granted in the FDCPA, for dealing with debt-collectors such as:
• The right to request copies of the checks;
• The right to dispute incorrect information prior to being subjected to the harassment of the check-diversion companies;
• The right to avail themselves of the protections against unfair, abusive or deceptive collection practices now prohibited by the Act.

This provision places no practical limits on the activities of check-diversion companies, which have a track record of abusing consumer rights throughout the country. Nationwide consumer organizations and the Federal Trade Commission oppose this unjustifiable exemption of check-diversion companies, and we do too. If they walk like a duck, and quack like a duck . . . well you know the rest – they must be debt collectors. Write to the Senate

Banking Committee, or send them an e-mail letting them what you think.

Want to share your story of dealing with aggressive check-diversion companies? Post your feedback in the comments section below. The editorial team from paydayloansonlinelender is committed to helping consumers save money and find good deals with credit and lending offers in 2015!

Refinancing Your Car A Potential Money Saving Strategy In 2015

Interest rates have been low for awhile now. You might have thought about your auto payment and wished you could reduce it, well right now might be a good time to go for a auto refinance. An auto refinance could save you thousands of dollars over the duration of your loan, a few hundred dollars per year. An auto refinance is not for everyone but if you are currently paying 6 percent or higher you may want to consider an auto refinance.

Now you may be think of how difficult it may be, as everyone knows refinancing your mortgage can be a pain staking process, or a headache like consolidating ones credit card balances. Unlike both refinancing your mortgage or consolidating your credit card debt applying for and obtaining a auto refinance is actually a relatively fast and painless process. You do not even need to have your auto appraised. There are usually not any fees and when they are they are low cost fees.

When should you consider refinancing your auto? If you fall into any of these situations below you should consider an auto refinance and if you are paying to much right now.

You didn’t get your best rate:
Perhaps when you applied for you car loan you had a good credit score. Your debt to income ratio might have even been spot on but for some reason you ended up with a poor rate. Usually this is due to going for a dealer ship based loan as these loans tend to carry a higher rate. Many consumers fall into this trap due to not knowing any better. The dealers do this to make extra money much the same way they usually make money by selling you an extended warranty.

Interest rates are lower:
If the market interest rates have dropped more than 1 or 2 points since you applied for your original loan you could save a lot of money with an auto refinance. Refinance rates are in the used car loan bracket and are higher than new car loans. Even a single percentage point can be a huge savings for you over the life time of your loan.

Credit score has improved:

When you applied for your original loan if your credit was in a different bracket, for example if you were a sub prime borrower but your new credit score places you as a prime borrower now is the time to re refi. Perhaps you had no credit or a few old delinquent accounts which have now fallen off of your credit report since you bought your car. Did you know that interest rates of 18 to 20 percent are common for those with whats called thin credit? Thin credit is when you have very little information and accounts on your credit report. Even a credit score jump of 30 points could mean saving hundreds of dollars per year via a refinance.

Your personal financial situation has changed for the worst:
Perhaps you have an upsurge in bills and expenses, or lost a secondary source of income. At any rate if you need to cut back on expenses a refinance could make all the difference. The money saved by a lower payment could be just the lifeline you need to stay afloat and it will not cost you money to find out if you qualify for a lower rate.

Searching for online loan offers in 2015, check out for the best options for consumer based loans from the convenience of your home or office.