Welcome!

News Feed Item

Know the Risks of Illegal Lending

Predatory Lending Is $40 Billion Dollar Industry

MISSION, KS -- (Marketwired) -- 06/23/14 -- (Family Features) Millions of Americans are finding out that the online payday loan they took out was provided by an illegal lender. These thieves have duped consumers into paying exorbitant interest rates and sky high fees on loans -- robbing them of their hard-earned cash.

Deterring theft, protecting consumers

In a dramatic shift of power, Consumer Financial Advocates has launched LoanReverse.com, a web service aimed at putting illegal, online lenders out of business and helping hard working Americans recover their cash, up to $1,000 per loan. The secure, easy-to-use website gathers a borrower's loan information, establishes his or her eligibility for a refund and then contacts the financial institution to facilitate the "loan reversal." This essentially recovers interest and fees, ending the obligation of the individual to repay the loan.

"This is a life changing service that on average will essentially put the amount of the original loan back in the hands of the borrower without any further obligation to pay the principal," said Buckley Carlson, a spokesman for Consumer Financial Advocates. "Through LoanReverse.com, we are succeeding where the government has failed; putting the squeeze on illegal, online predatory lenders, putting cash back into the pockets of these unwitting victims and helping them to identify alternative and affordable legal lenders. All in a process that takes about five minutes per loan."

Carlson added that LoanReverse will essentially be obsolete after a few weeks once the illegal online loan industry has been closed. "Time is ticking for people to recover their money as the third-party clearing houses that coordinate payment transfers are going to wake up and not accept transactions from these illegal lenders that hide online in a shadowy world that cons more than $40 billion annually out of hard working people."

Understanding illegal online payday loans

More than 43 million online payday loan applications are submitted every year -- that's 120,000 per day. However, not all payday loans are equal. According to research by Pew Charitable Trust, approximately 90 percent of online loans are illegal, meaning the lender is not licensed in the state it is doing business, charges interest rates above state laws or is violating loan rollover regulations.

The federal government has taken steps to regulate payday lending and 18 states have effectively banned such loans by capping the interest rate that can be charged on small loans. These efforts have thus far failed to reign in online illegal lenders, and currently millions of financially struggling Americans are falling deeper and deeper into debt as the borrowing cycle continues.

"Many states and the Federal Government, through the Consumer Financial Protection Bureau (CFPB), are working to regulate the payday loan industry but individuals and families who continue to struggle need to understand where their loan is coming from," said Carlson. "If it isn't clear on the lenders website that they are licensed in the borrowers state, chances are they are a predatory lender."

A harmful solution

Payday loans offer one solution that allows workers to borrow in advance against their paycheck with a loan that offers cash, due in full on the borrower's next payday, usually two weeks in advance. While borrowers find fast relief and don't hesitate to incur the $20, $30 or even $40 fees per $100, they are often unable to repay the loan and take out extensions. This can leave the borrower indebted for months as the interest rate escalates from 100 to more than 1,000 percent as the loan repayment is postponed.

"LoanReverse.com is going to change the online lending industry. The first step is to help people reverse debits illegally drawn from their accounts, set the stage to stop future unauthorized withdrawals and eradicate the obligation of principal repayment for borrowers," said Carlson. "However, the working middle class will still need a place to turn for short-term loans and we want to point them to the legal, affordable store-front and online lenders, such as Cash America or lendup.com."

Carlson encouraged those with online loans to visit https://LoanReverse.com to see if they are entitled to a refund and to learn more about illegal online loans.

For more information, visit https://LoanReverse.com.

Where to turn for help and more information:
www.loanreverse.com
www.consumer.ftc.gov
www.consumerfinance.gov
www.fdic.gov

About Family Features Editorial Syndicate
This and other food and lifestyle content can be found at www.editors.familyfeatures.com. Family Features is a leading provider of free food and lifestyle content for use in print and online publications. Register with no obligation to access a variety of formatted and unformatted features, accompanying photos, and automatically updating Web content solutions.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2623804
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2623807

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across supply chain networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost and time for product recall as well as advance trade. Are you curious about Blockchain and how it can provide you with new opportunities for innovation and growth? In her session at 20th Cloud Exp...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Quickly find the root cause of complex database problems slowing down your applications. Up to 88% of all application performance issues are related to the database. DPA’s unique response time analysis shows you exactly what needs fixing - in four clicks or less. Optimize performance anywhere. Database Performance Analyzer monitors on-premises, on VMware®, and in the Cloud, including Amazon® AWS and Azure™ virtual machines.
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
The goal of Continuous Testing is to shift testing left to find defects earlier and release software faster. This can be achieved by integrating a set of open source functional and performance testing tools in the early stages of your software delivery lifecycle. There is one process that binds all application delivery stages together into one well-orchestrated machine: Continuous Testing. Continuous Testing is the conveyor belt between the Software Factory and production stages. Artifacts are ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...