Consumer Confidential: Why Is a Group of Lawmakers Working to Undermine Tighter Rules for the Payday Loan Industry?
In a bizarre display of bipartisan cooperation, a handful of Democratic lawmakers have joined Republicans in trying to cripple the Consumer Financial Protection Bureau. The question is: Why? Most notably, Florida Rep. Debbie Wasserman Schultz, who also serves as chairwoman of the Democratic National Committee, is co-sponsoring the deceptively titled Consumer Protection and Choice Act, which would undermine the watchdog agency’s...
Money Talk: Mind the GAP Coverage Limitations
Question: In 2012, I financed a 2008 Honda at my credit union. The car was priced at $16,500. With a trade-in, the loan came to $22,000. Guaranteed Auto Protection coverage, or GAP, was factored into the loan payments, which were $464 a month. Last year, the car was wrecked and deemed a total loss by the insurance company. They paid the “book value” of $8,860 to the credit union. However, $6,000 remained on the loan. The GAP coverage...
Home Seller’s Guide to Mortgage Types
A bonanza of multiple offers means many home sellers can choose whichever buyer’s bid they like best. The temptation to grab the highest price and call it a deal is naturally strong. But price isn’t the only factor that sellers should consider. Financing affects sellers, too — because if something goes wrong with the mortgage, the sale might not close. From the seller’s perspective, here are pros and cons of four types of homebuyer...
Experts Warn Against Long-Term Auto Loan Trend
After a year of record new-vehicle sales, automakers, dealers, and the banks and finance companies that issue car loans are jubilantly exchanging high-fives. Analysts list several reasons for record sales of 17.5 million vehicles in 2015, including an improving economy and job market, low interest rates, cheap gas and growth in leasing. New-car sales also are being driven by easy credit: Consumers, many with marginal credit ratings,...
Next Big Workplace Perk: College Debt Relief
Minneapolis — A growing number of companies are dangling a recruitment perk that is tailor-made for the millennial generation: debt relief. Free snacks and gym memberships don’t hold the allure they once did for young people entering the working world. Buried under student loans of more than $29,000 on average, they want help. “For this millennial group, it’s more important than the 401(k),” said Tim DeMello, CEO and founder of...
