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
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.