Archive for the ‘Miscellaneous News’ Category


How Important Is Payday Lending To Local Communities

Posted by Emily

More and more families and shared households are facing a common challenge on a wider scale.  The challenge is the shortage of funds. The economy’s current state as well as the surge of job losses in this nation has left many families turning to new alternatives that would have never been previously considered.  We hear many testimonies and have been called “life savers”  in many cases during hard times. One customer reported that she was able to use a payday loan to avoid the high Non-Sufficient Funds (NSF) charged by the banks.  The average bank fee for (NSF) $35 per charge, compared to the finance fees charged by most payday lending companies which start at around $15-$20 and up. Many have depleted savings, and borrow money from friends and family to get by during critical times.  Many have taken on jobs that pay far less than what  the household was accustomed to bringing in.  While the unemployment rate is steady and job creation and development has been slow, many have begun to entertain the thought of obtaining short term loans.  This is where the Payday Loan industry fits into the picture.

Who are some of the consumers of payday loans? Having to borrow money is obviously not something most families like to report.  However, according to the Survey of Consumer Finance Data (SCF) the average consumer of a payday loan is approximately aged 36-39, is Caucasian, and has some college education, but  no degree.  Another %19 of borrowers taking out payday loans do have a college degree.  Industry figures as well as the SCF’s data show that the mean income for families who took out a cash advance payday loans was in the range but not much over $32,000, whereas the households bringing an income closer to $80,000 and above were less likely to take out a payday loan.  The Federation of International Civil Servants Association reports that their payday loan borrowers have an average household income of  more than $40,000.   Another report stated that the average family income for families taking out payday loans ranged between $25,000 to $49,000.

Much can be said from this data. Not only does it thwart the previous information stating that payday loans were only utilized by low income households, but it shows the frequent use of these loans by families with both low income and middle class incomes. It also clearly addresses the necessity of having access to this type of service for both income levels.

We may be able to help you during your cash shortage. Apply here

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Who Are The Banks Lending To? Can You Really Believe What You Hear?

Posted by Emily

Who are the companies lending money to the payday loan lenders? They are the banks, of course.  They are certainly not lending  to families and small business. In fact, these are the same banks who were bailed out by the government.  There are published reports where you will find quotes from these very bank lenders calling the payday loan industry a “bottom feeder” industry. So why are they doing business with them? For the huge profit. These banks are by no means hurting, but are making great profit at servicing this industry. Bank of America claims they treat “payday lenders as a discouraged industry.” But when their doors are closed is that really true?

These same banks have become slow to provide home loans for families and lend to small businesses, but instead have provided the financing for payday lending companies with whom they claim to look down upon and have distant dealings with.

This week in the Seattle Times, Bank of America stated “We treat payday lenders as a discouraged industry” “We have limited appetite for doing business with them.” But according to the chart below, you can see where a good portion of the money is going.

In their defense, banks, including B of A have begun to impose stricter rules for compliance . They do appear to try to choose reputable payday lending companies, including some large publicly traded companies that have good compliance, consumer disclosure and collections practices. Their claim is that they ‘strive to do business with only the most responsible of these lenders.”

When banks refuse to have reasonable lending terms for families and homeowners many have gone to nontraditional financial institutions, such as payday loan companies, for short term personal loans.  In many cases the lending fees are high because of the banks finance fee to the lender. For many, these are the only financial institutions that are easily accessible are check cashers, pawn shops and payday loan centers.

So why deal with “bottom feeders”? Simply put, the banks are under scrutiny from the government and are losing normal streams  of revenue that was enjoyed in the past because of new financial regulations. They have a strong need for new ways to make money and lending to payday lenders is one great resource for banks. Their comments about the industry being so distasteful, and how their appetite is limited in doing business with lenders really is a joke. The payday lending industry has brought them a great avenue for new revenue and they are enjoying it as the payday lending industry continues to move full speed ahead. It cannot be ignored that the payday lending industry is extremely lucrative especially where banks come in. For example, a normal $500 payday loan from the banks would come with an APR of about 287 percent.

‘Kevin Connor of the nonpartisan Public Accountability Initiative found that banks have extended $1.5 billion in credit over the past few years to publicly traded payday loan companies. They estimate available credit to the industry overall is as much as double that when privately held payday loan firms are included.’

Reports estimate that there are over  22,000 payday loan stores nationwide which make $30 billion in loans each year.

The banks borrow from the Federal Reserve at low rates, but last year the banks collected $70 million in interest payments from payday centers during the year of 2009 alone. At best their negative connotations on the industry that is helping sustain them is really all about reputation.

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Happy 4th of July, Happy Independence Day

Posted by Al

Happy 4th of July. A great day to celebrate by all of us Americans for our independence day of our beautiful nation.

It is in spirit of America to be independent. Americans love being independent, not only from other nations but also from many other things in life that slows us down or hold us back. And post this long economic recession, we have learned to also try to be financially independent.

Independent from credit card debts and unnecessary debts, and take charge of our financial future. According to the graph below America has cut back on unnecessary spending and now learning how to be financially secured and independent.

Below is a graph that shows how public has been effected by the recession and how it is handling it. It is self explanatory. America wants a financial 4th of July. An independents from wall street’s credit card companies, banks, and lenders, who have for long make America work too hard just to pay off their debt.

America and recession

Well done America, keep it going. We don’t need big government to regulate us, we can do ourselves. All the so called financial reform bills are just to keep the old wall street in business, while blaming the smaller lenders like payday lenders, who were there to help American with cash flow lending them money they needed while the banks were taking their homes away.

Happy Independence Day

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USA vs Algeria …USA Advances Through an Amazing Win!

Posted by Al

Ok not taking about payday loans this time. I am a big time soccer fan and today I was able to watch the first half of the game before getting to work. Then during half time jumped in shower, and got ready and came to work. While driving to work I was listening to the game on 710 ESPN radio Los Angles.

After seeing another good goal of US being disallowed, I was to be honest with you, not so optimistic if we could advance to the next round. We needed to win and the game was near finished. Game was at 0-0 despite many US deadly attacks.

I pulled to my jobs parking lot around 89th minutes of the game when I thought the game was done. The ESPN soccer reporter, with his English accent, said that there was 4 minutes of added injury time. So I decided to stay in my car and listen to the game till in finished but still pessimistic that US was not going to score a goal.
Then I heard there was a chance for US in final minutes, US sticker Donovan had the ball…he scores!!!!

I was so happy I jumped in my car and hit my head to the ceiling of my car. It was painful but my joy had overcome the pain.
US national team had pulled it through. Good job team US.

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Off Topic -Soccer World Cup South Africa

Posted by Al

Another soccer FIFA World Cup has arrived and this time is being hosted for the first time, in an African nation, South Africa.
African countries have never hosted the world cup before yet they have produced many great soccer players who often end up playing for the European and other intentional soccer teams or as also referred to as football clubs.

USA has probably the strongest team it has ever had and it is in rather an easy group, along with world power house England, Algeria, and Slovenia. But easy is term relatively mentioned and because the other teams were among the best in their content which is why they qualified for the world cup. Also England is considered one of the favorites and it is ranked top 5 so Sam’s Army (another name for US national soccer team) will have its work ahead.
Favorites for this world cup are Argentina, Brazil, England, and Spain ordered alphabetically although African nations will have home advantage and due to nature of soccer being a low scoring game, any underdog can beat any of the favorites and win it all.

So make sure you don’t miss out on the world cup which happens only every 4 years, and cheer for your team. And if you can’t watch the games live, there are a plenty of websites you can follow the news on but FIFA world cup is the best source of soccer news. Go Sam’s Army, Team US!

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You Can Now Contribute to Our Blog

Posted by admin

If you like to write, we are always looking for creative writers and bloggers who are interested in writing or contributing to our blog. We ask for well researched articles that are attractive to our audience, and also attract other audience in the financial sector.
If you believe you can contribute, you can see details by going to become an author page.

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Flamingo Flower Plant | Anthuriums

Posted by admin

Anthuriums are strong, fleshy, low-maintenance plants with attractive shiny foliage and bright flowers that can produce long-lasting flowers in the right conditions.  Anthuriums comes in an estimated 1000 species and are most commercial potted in Florida and the Netherlands.

Anthuriums make excellent indoor plants as they excel in medium to bright indirect light and in room temperature surroundings.   Although they can survive well in lower lightings, this may cause a slowing down or ceasing of flower production.  They also like moist soil but not excessive wetness.

The flowers on Anthuriums are fleshy and come in a variety of colors, including bright red, green, peach,  or white.  The flowers are also hermaphrodites, meaning there are both male and female flowers.

Baby Anthurium plants need the same kind of attention as their adult counterparts and are quite cute.

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