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Interest Rate Cut 100-dollar-bill

Payday Loans Interest Rate Cap being Introduced By The FCA

November 25th, 2013 Interest Rate Cut

Britain is all set to limit the price of payday loans, stepping up its controls on the business just a month following what the regulator had stated that enforced price controls would be “a really intrusive proposal”.

As high street banks have pulled back from riskier borrowing, short term lenders such as QuickQuid, Wonga and LendingStream have prospered. However, the payday loans industry has shifted into the spotlight within political discussion regarding how some families are fighting to deal with rising prices and stagnant wages.

“We will have a limitation in the entire expense of credit – we are studying the entire package, not only the interest fee, but also the arrangement fees along with the penalty fees,” Osborne said in a statement.
The finance ministry said the amount of the limit will probably be determined by the new regulator, the Financial Conduct Authority (FCA).

The FCA at that time said a cost cap was considered, but it was a “very intrusive proposal” that could make it harder for individuals to borrow and shove them in the hands of loan sharks. The FCA will begin controlling the business in April 2014.

As the opposition Labour party has actively campaigned for interest limitations, government ministers had formerly been reluctant to give in to a limitation on the price of credit.

Wonga, among the largest payday lenders in Britain, has seen gains surge and charges an annual rate of interest of 5,853 percent, according to its site.

Australia did previously cap payday loan interest rates and also many EU nations and U.S. states have APR limitations in place.

The Consumer Finance Association (CFA), who represent all of the short term payday lenders in Britain, said it was surprised by the introduction of the interest cap.

UK regulators are widening their examination throughout the credit business after spending the past few years clearing up mis-selling by banks and attempting to enhance their behaviour.

The UK’s competition authority is also investigating payday loan lenders following from what the consumer watchdog stated that there were deep-rooted problems in the way that may payday lenders, which process over £2 billion ($3.1 billion) per year, treat their vulnerable customers.

The watchdog said businesses were profiting from a fifth came from loans which were extended four times or more along with loans that may not be repaid on time after finding of half of earnings came from fees charged to customers for extending loans.

Ed Miliband Attacks Payday Loan Ads For Targeting Children

November 10th, 2013 Ed Miliband on Payday Loan Ads

Mr Miliband used a bit within the Sun in Sunday newspaper to maintain children are targeted by firms eager to manipulate “pester power”.

As betting and junk food promotions for them all to be treated the same calling, he said that, in the event the Advertising Standards Authority neglected to act, a Labour government would legislate.

“We also know how readily they may be affected. That’s the reason I really worry when payday lenders target our youngsters and young people.”

That is really what the evidence indicates they are doing. How else might we describe thousands and tens of thousands of pounds being spent by payday lenders for placing TV adverts in between children’s television programmes?

Why else are their using cartoon characters, fashionable puppets or cute plasticine figures in a few of their ads?“  They are not merely placing those ads to appeal directly to parents.

They need to use pester power to push children and teenagers to put pressure on their parents.” He mentioned a recent survey that demonstrated more than one in three people with kids under 10 said their child had relayed payday related advertising slogans to their parents. Mr Ed Miliband will request the Advertising Standards Authority to stop reckless marketing by payday lenders that can exploit children and young people,” he said there isn’t any reason for advertising payday loans during children’s TV.”

Henry Raine, head of regulatory and public issues at Wonga, told the committee: “Wonga’s company is aiming to give to individuals who may pay us back; that is how we make money. “The large majority of individuals pay us back punctually. We suspend interest after 60 days and 25% of individuals pay us back early.” He said Wonga’s credit record compared favourably with the remainder of the outstanding loan business, including charge card businesses and banks.

Payday Loans Q&A

November 9th, 2013 payday loans

Insolvency experts forecast that more individuals who are short of cash will turn to payday lenders – who can be located in the web and also the High Street for a payday loan.

Consumer groups and some debt charities have warned that such lenders can entice the unwary into taking on debt that balloons out of control.

An official study in 2010 said they supplied a valid, useful, service that helped to cover a difference on the marketplace.

Typically someone will borrow a couple of hundred pounds from a cash advance business for a brief time, to tide them over till they receive their next wage or pay cheque.

The borrower will generally provide payment to the creditor to cover the ultimate repayment of the money borrowed, plus interest.

The cash is usually crisis borrowing to pay an urgent unforeseen bill, such as rent or utility bills.

Just how many individuals use them?

There aren’t any official figures on how many individuals use this kind of borrowing.

The Public Accounts Committee (PAC) said that about two million men and women in britain used payday loans.

Who uses them?

The OFT found the typical borrower of the payday loan was “more inclined to become a young man, getting more than GBP1,000 monthly, and in rented accommodation. Many are single with no kids”.

But the borrowers aren’t generally unemployed or with no bank account.

They sometimes view the loan as a practical choice to running up an unauthorised overdraft.

Some have turned to these lenders because family budgets are getting squeezed and banks have restricted their credit offers.

Just how many businesses offer them?

The OFT said in November 2012 that there were about 240 payday loan businesses completely in britain, with all the top 50 accounting for the majority of the financing.

Its previous research indicated there were about 2,000 High Street cash advance stores, a few of which are a part of big national chains, like the Money Shop.

Some were also pawnbrokers too, running out of exactly the same premises.

There were also believed to be more than one hundred on-line businesses offering cash too, which were much higher priced.

Across the entire consumer credit sector there are 72,000 lenders, the PAC says, but this includes credit card businesses and door-to-door lenders.

What’s the issue?

The loans are rather expensive with extremely high interest rates.

But in the eyes of the borrower that’s generally not applicable. What matters may be the cash price of refunding the loan.

That may be okay to the borrower in the event the loan is more suitable than an overdraft, or another kind of arranged loan, and is taken for only a couple of days.

If he or even she cannot in fact pay back the loan as intended the difficulty for a borrower begins to build up fast, also it gets expanded, or rolled over.

The interest then builds up fast and may soon swamp the measurement of the first loan.

It concluded that they provided a helpful service for some individuals who would not otherwise manage to borrow legitimately and who might consequently have to borrow from prohibited loan sharks.

But it changed its tune in its November 2012 report especially on payday lenders. It has told individual lenders to enhance the method by which they deal with customers , and it has lately threatened to refer the business to the Competition Commission.

More info is accessible from a number of charities about the best way to handle debt problems.

Jonty Hurwitz Steps Down From Wonga

November 8th, 2013 Wonga Jonty Hurwitz

As the business faced a barrage of criticism from MPs and turbulence in its boardroom less than 24 hours following a high-profile PR drive was launched by the payday lender to resurrect its name Wonga came under siege on Tuesday.

Executives from Wonga and other payday lenders were attacked for “grooming” young individuals to take out expensive short term loans in a hostile parliamentary hearing that highlighted mounting political examination of the business.

Wonga – the largest of several payday lenders to have seen explosive growth in recent years – started a fightback on Monday with the premier of a polished picture meant to “set the story straight” about the business.
The effort didn’t prevent an unique tide of demands from consumer and MPs activists for tougher regulatory controls to the sector – including a clampdown on television advertisements by the companies.
The criticism came as Wonga declared the departure from its board of the company was co-founded by Jonty Hurwitz, who with Errol Damelin, chief executive, in 2006.
Although Mr Hurwitz stepped back from an operational function a couple of years back, he’s credited with devising Wonga’s complicated algorithm, which assesses a large number of bits of digital information including borrowers’ Facebook profiles before agreeing financing.

Ed Miliband, Labour leader, had previously attacked Britain’s “Wonga market” in which he maintained payday lenders were responsible for a “quiet disaster” leaving a large number of families trapped in debt.
Wonga said Mr Miliband was rehashing myths about its company.

The Office of Fair Trading, which manages the short term, high interest credit market, estimates that Britons took out more than 8m payday loans in 2011-12.

In a report released earlier this year the OFT said that it had discovered “fundamental issues” within the business.
Martin Lewis, the dominant consumer finance expert, told MPs within the hearing that aggressive marketing was making payday borrowing appear like an enjoyable trade “rather than a hardcore kind of debt”.
“These lenders are basically grooming children to be the following generation of borrowers,” he said, calling for a prohibition on payday loan advertisements on children’s television.

Debt charities told MPs they had found a sudden upsurge in people seeking help with payday loan debts, and spoke out against the practise of credit rollovers, which they maintain pressed many vulnerable people into cycles of debt. The lenders insisted they had made every one of the changes were robust and that their affordability checks requested.

Henry Raine, head of public and regulatory issues at Wonga, said the business compared favourably with banks and charge card providers.

From April, regulation of the sector will probably be passed to the Financial Conduct Authority, which has promised to reinforce consumer protection.

Martin Lewis “Payday Lenders are Grooming Youngsters”.

November 8th, 2013 Martin Lewis Payday Lenders

Payday lenders are accused of “grooming youngsters” after research demonstrated that youngsters under 10 are repeating payday loan ad slogans and nagging parents to get financing to pay for toys and games.

The research was conducted by MoneysavingExpert, prompting its creator Martin Lewis to say: “Children are getting dazzled by catchy tunes and cunning puppets”.

He told a committee of MPs on Tuesday that payday lenders ought to be prohibited from advertisements on children’s television.

When MPs on a select committee grilled them on their dubious practices senior managers at payday businesses were given a torrid time on Tuesday.

They were summoned before MPs to defend their reckless lending and extortionate charges.

Officials from Mr Lender, QuickQuid and Wonga – Britain’s most lucrative payday lender – along with two credit commerce bodies, were made to defend their activities, including enabling borrowers to rollover loans leading many to enter a coil of debt.

Evidence was also included by the three hour session from Government ministers, consumer groups and regulators.

However, it absolutely was the lenders themselves who bore the brunt of opprobrium.

“Some of the polish they’ve been attempting to put on themselves, rubbed off today quite badly.”

He was referring in part to the brand new movie financed by Wonga, which was given redcarpet London launch on Monday night and which tries to reposition the business as helping people, instead of driving them in a fatal coil of debt.

The launching of the film 12 Portraits and also the appearance on Monday on Newsnight of Wonga leader Niall Wass prompted Mr Miliband’s outburst on Tuesday. While discussing the growing expense of living he said: “Last night the manager of Wonga said he was speaking for the ‘silent majority’, that are pleased with their service.
“But the reality is he wants us to remain quiet about a business where in one year only their bad debts reached £120 million.

They’re in charge of a quiet crisis of many thousands of families trapped in unpayable debt.”

Martin Lewis told MPs in the select committee that it’s time to prohibit payday loan ads from children’s television channels and programmes and confine the essence of the adverts.

“Payday loans are a part of the costliest kind of immediate gratification culture. Now these lenders are basically grooming kids to be the following generation of borrowers,” he said. “The present explosion in the amount of people borrowing within this manner is nothing compared to how the next generation will behave.”

Citizens Advice chief executive, Gillian Guy, who also appeared before the committee, said: “Payday loans should have a health warning including info about the prices and also the effect of taking out financing. All too frequently adverts hide the actual hardship due to reckless lending.”

The charity is requesting individuals to report reckless cash advance advertisements to the Advertising Standards Authority.

Debt charity StepChange also called on Tuesday for tighter controls on marketing, demanding health warnings to emphasise the dangers of high – price credit.

“Their adverts must give appropriate warnings, not just encourage the notion that’s fast and simple to obtain financing.”

The ASA slammed the advertisement – which featured a rewritten version of the popular 1950s tune Mr Sandman – because it “suggested that it was acceptable to habitually make use of a cash advance with the aim of supplementing a monthly income without a lot of thought”.

Earlier in the year the ASA banned a cash advance ad by Cash Lady, featuring twotimes broke Kerry Katona. The advertising meant it was more suitable and desired to obtain financing through payday lenders than high street banks.

The “Benjamin” Evolution – The Redesign of the $100 Bill

October 25th, 2013 100-dollar-bill

The redesigned $100 bill

The revamped version of the 100-dollar bill made its first appearance on October 8, 2013, and is the latest, redesigned denomination of U.S. currency. Believe it or not, a decade of research and development went into the new note’s advanced, security features.

To pay homage to this modern take on an original classic, we’ve highlighted some of Benjamin’s most recent modifications, as bulleted below!

* 3-D Security Ribbon
* Bell in the Inkwell
* Portrait Watermark
* Security Thread
* Color-Shifting
* Raised-Printing
* Gold-Markings
* Marked Symbols of Freedom
* Portrait/Vignette Design
* Microprinting
* Color Scheme
* FW Indicator
* Federal Reserve Indicator
* Serial Numbers

Such safety features offer a simple, subtle way to verify the note’s authenticity, and reduce your risk of falling victim to counterfeit currency schemes.
sources:

http://www.newmoney.gov/uscurrency/redesigned100.htm

http://www.moneyfactory.gov/small100denom.html

http://www.businessinsider.com/thomas-hart-benton-100-bill-2013-10

http://www.usatoday.com/story/money/business/2013/10/07/100-dollar-bill/2936097/



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