BRITAIN: ‘ FCA REGULATOR IMPOSES PRICE CAP ON PAY-DAY LOANS ‘

#AceFinanceNews – BRITAIN – Nov.09 – The City regulator is imposing a price cap on payday loans to help prevent borrowers being ripped off.

The FCA moves to limit costs in the short-term credit market, saying its rules will make it fair for both lenders and borrowers.

The FCA moves to limit costs in the short-term credit market, saying its rules will make it fair for both lenders and borrowers.

The Financial Conduct Authority’s (FCA) initial cost cap will come into force on 2 January, set at 0.8% per day.

The watchdog said that would lower costs for most borrowers, explaining that for all high-cost short-term credit loans, interest and fees must not exceed 0.8% per day of the amount borrowed.

Fixed default fees will be capped at £15 to help protect borrowers struggling to repay.

A total cost cap of 100% was aimed, the FCA said, at shielding people from escalating debts and it meant that borrowers must never have to pay back more in fees and interest than the amount borrowed.

The regulator said the changes would ensure that someone taking out a loan for 30 days and repaying on time will not pay more than £24 in fees and charges per £100 borrowed.

It announced the changes in July but put the conclusions out to consultation to try and ensure they were fair.

Source: 

#AFN2014 

#borrowers, #credit, #debt, #lenders, #loans, #payday, #regulator

United Kingdom Would Need Longer to Recover its ` Tripe-A-Debt-Rating ' if Scotland Gains Independence '

#AceFinanceNews – BRITAIN – April 10 – The UK would need longer to recover its triple-A debt rating if Scotland gains independence after a referendum in September, Fitch said on Thursday.

Scottish independence would raise the ratio of the UK’s gross public debt to gross domestic product, Reuters said.

“The UK’s gross debt ratio will need to be lower than its current level and steadily declining before any upgrade back to AAA, a prospect that would be delayed by such a debt shock,” according to the ratings agency.

Telegraph Reported on March 20 – Britain’s public sector net debt will need to fall before the country can regain its top-notch triple-A sovereign debt rating, ratings agency Fitch said on Thursday, a day after finance minister George Osborne’s annual budget http://www.telegraph.co.uk/finance/economics/10712316/UK-not-close-to-regaining-triple-A-rating.html

“The public debt ratio will need to be lower and steadily declining before any upgrade to ‘AAA’. This is unlikely in the near term,” Fitch said in a statement.

Fitch currently rates Britain AA+, one notch below triple-A, with a stable rating.

Government forecasts released showed that Britain’s public sector net debt is expected to rise over the coming years and is not forecast to fall below its current level of around 74.5pc of GDP until the 2018/19 financial year.

It means that only Standard & Poor’s has the UK on the top rating, albeit on “negative outlook”.

#AFN2014

#britain, #debt, #fitch, #gdp, #gross-domestic-product, #scotland, #triple-a-rating, #uk

` Ukraine's Overall debt to ` Russia ' stands at $16.6 Billion of which $2.2 Billion is Accumulated Gas Debt '

#AceFinanceNews – MOSCOW – April 09 – Ukraine’s overall debt to Russia stands at $16.6 billion, Russian Prime Minister Dmitry Medvedev said Wednesday at a meeting with President Vladimir Putin dedicated to the situation around Ukraine.

“Three billion dollars is Ukraine’s debt, the accumulated gas debt stands at $2.2 billion, and what we consider Russia’s profit shortfall stands $11.4 billion, which brings the total sum to $16.6 billion,” Medvedev said.

“We use the same approach in regard to our Ukrainian partners as regarding other partners, the key principle is that contracts should be implemented,” the Russian premier said.

He recalled that Russia and Ukraine have an agreement signed in 2009, which should be implemented. In his words, the document stipulates “a switch to the advance system of gas payments if the debt has not been repaid”.

“We could have switched to the advance payment system earlier, but we did not do that because we understood the difficult economic situation in Ukraine,” Medvedev said.

Russian Finance News

#AFN2014

#debt, #dmitry-medvedev, #moscow, #president-vladimir-putin, #russias, #russian, #ukraine, #ukrainian

” Debt Collector’s Tend To Favour Going After African American’s Rather Than White’s”

#AceDebtNews says according to HUFFPOST  a  new survey finds that African-Americans are much more likely than whites to be called by debt collectors, despite both groups reporting relatively equal levels of debt and repayment rates.

Just take a look at this chart:

DEBT-COLLECTORS

Think tank Demos and the NAACP Economic Department collaborated to survey moderate-income American households with some credit card debt for the study. Black Americans weren’t any more likely than whites to be late on a payment, the survey found, and they were also no more likely than whites to declare bankruptcy or get evicted.

So what gives? It’s not clear exactly why debt collectors seem to be going after one race more than the other, but the study’s findings could be the result of one unfortunate reality: Black Americans tend to have lower credit scores than white Americans, research has shown. And that gap got wider as a result of the financial crisis — sub-prime lenders were more likely to target African-Americans during the housing boom. Those loans, with higher interest rates, were more likely to default. The result: credit scores that could be marred “decades,” as the Washington Post pointed out in 2012.

“African-American households are more likely to have been called by bill collectors because they are more likely to have blemishes on their credit history that would send debts to collection agencies,” Catherine Ruetschlin, an author of the Demos report, wrote in an email to The Huffington Post.

The economic recovery hasn’t been kind to African-Americans: The unemployment rate for blacks (12.5 percent) is more than double that of whites (6.2 percent), according to the most recent jobs report. In fact, the jobless rate for blacks now is much higher than the overall unemployment rate in October 2009 (10 percent), the highest it got in the aftermath of the recession.

“Those disadvantages mean that African-Americans are more likely to face financial insecurity and have poor credit scores as a result,” Ruetschlin wrote.

Blacks also have a harder time than whites getting a home loan. They earn less than their white peers. They’re much more likely to live in poverty and less likely to have health insurance.

Mark Schiffman, a spokesperson for ACA International, a trade association of third-party debt collectors, defended his industry as “color-blind.” “They [the third-party agencies] don’t get into the ethnic information,” he told HuffPost. “Their job is to collect the debt, not give out the credit.”

Adam Christian Debt Management Services

#DRAP

#acedebtnews, #acefinancenews, #aca-international, #african, #african-american, #collection-agency, #credit-scores, #debt, #debt-collectors, #huffington-post, #huffpost, #national-association-for-the-advancement-of-colored-people, #united-states, #washington-post, #white-american

The Collapse of The American Dream Explained

#AceDebtNews says it all starts with borrowing and lending other people’s money and it all ends up with a lot of people losing everything they own! It is simply #OPM to #Debt in two easy lessons! Never borrow more than you can comfortable afford allowing for 20% more income than debt, and always remember it is easier to borrow than to payback #DRAP

For more help and guidance in getting out of #Debt send an email to this address: acedebtservices@groups.facebook.com and leave your contact address and l will reply personally to you ,in the strictest confidence.   

 

consciousshift2012

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#acedebtnews, #business-and-economy, #debt, #finance, #financial-services, #home, #money-management, #personal-finance, #united-states

ChinaPost com tw U S credit card giants…

(ChinaPost.com.tw) – U.S. credit card giants Visa and Master-card sued retailers that rejected a multi-billion-dollar settlement over transaction fees and asked the court to rule the fee practices weren’t illegal.

#china, #debt, #finance

Borrowing More Costs You Less

Recently l visited my bank having repaid a personal loan! My intention was to look at another loan! But it also provided me with even greater understanding, of how people are talked into #debt! The simple fact was l had a plan,l knew my budget, but my bank manager also had a plan, but both plans went in different directions! His was to provide 2 quotes one for the amount l asked for, and one for 50% higher! But his comment must be music to every borrowers ears,” If you borrow more it costs you less” Well thanks for that l said, but having got people out of debt over the last 25 years, l know how easy it is to get into#debt! Also how difficult it is to become #debt-free! So l told him l would get back to him when l was ready. But it just shows how easy it is to#Borrow More And Repent At Leisure! Always remember borrow only what you#can-afford and have planned to borrow. Do not let anyone persuade you to follow their plan,or one day you will pay the piper, and your bank will get richer! So plan to become #debt-free and not end up further in #debt and unable to make the repayments!

#more4less

Get Out Of Debt Without Borrowing

Finally l have connected all my websites and RSS Feeds into Google Apps using web-master tools and the joint site now has it first group launched today, “Get Out Of Debt” and post a comment by emailing the site at getoutofdebt@aceworldwideservices.com or anyone with a debt of any kind can email me with their problem in total confidence to at either get-out-of-debt@acefinance.me or need-help-with-debt@acefinance.me.
All our debt advice, help and guidance is totally free and we do not arrange to put you further into debt, by enabling you to borrow more money.
Eventually we will publish all the successful clients testimonials, once we have sought their agreement, and a new blog will feature all the details, so you can see how we “Get People Out Of Debt” daily.
Need any more information leave or email a comment and l will reply as soon as l can!

#ace-debt-management-services, #debt, #get-out-of-debt-without-borrowing, #google-apps, #rss

How To Repay Your Debts With Out Borrowing More Money In Three Easy Steps

If you cannot be honest with yourself, you cannot be honest with other people!

If you cannot be honest with yourself, you cannot be honest with other people!

This is how l provide my “Debt Management Services” to people who are in need of help and guidance, to cut their debts, and not increase them by borrowing more money!

My personal view of anyone that lends money to get people out of debt is that it is wrong! I realise that when faced with a large bill, or how to repay that last payment to the power company, or even the debt collector, the first thing we all do is “panic”! It is then that “Pay Day Lenders” come into their own by providing what you “want” not what you “need”

The reason why l can know ,all this was back in 1988 my debts were “huge” and l was absolutely “terrified”at the thought! But in my case l had actually lent other people’s money, as l was a “broker” that broker deals all over the world, and one day l was “broke”myself! I contemplated a number of routes including “suicide” but l did not believe, that this would really solve my debt problems! I needed to find a way to repay those that l had personally “borrowed” in my name! As these were the ones that would one day come back to haunt me!

So l set about creating a plan and named it using the initials in my name “DRAPE” and it stood simply for “Debt Reduction Analysis Plan Exercise” it eventually got shortened to just “DRAP” as it became simply “an exercise in good debt management” rather “than borrowing as a way” to repay my debts! So in this post l will simply explain how l do this, as everyone can do it ,but many are too scared to contact “their” lenders, so they go to short-term money lenders! This eventually brings them back to me and usually it is too late! So read how using

“My Three Easy And Simple Steps” you can teach yourself how to “not to pay more money to other lenders” and use that money you “save” to manage and eventually get out of debt!

Step One:- Being Honest With Yourself:

Is really adding together all that you owe, every debt you have including bills, finance agreements or others, even money owing to family or friends! This will enable you to start to deal with the “fear over debt” it is not the debt itself you fear “but the fear of being in debt.” So by adding it all together “you become aware of your total indebtedness” but be warned if you hide anything it will “come back to haunt you,when you least expect it.” As lenders who are ignored, will pester the life out of you “causing you even more stress,” that is why l call it “being honest with yourself” as if you are not honest with yourself, you cannot be honest with anyone else, including the lenders! And this plan is simply about “honesty”, as you will see, as l proceed to step two!

Step Two:- Being Honest With the Lenders:

Once you have fully mastered step one you can move onto step two and decide the “how and what” of presenting your case to the lenders {Be it One or More} this is the point at which people turn to “Debt Management Companies” for help and yes sometimes they relieved the short-term problem but they do not do this “without payment” for their services! Their costs vary and it is usually added onto what “arrangement for payment” you eventually agree upon, this is called “ Making An Arrangement With YOUR Creditors notice l highlighted “YOUR” as if to scream out at you as it is “YOUR” creditors and not the debt management companies! As once they have made an agreement upon your behalf, that “you”will pay them an agreed amount to the lenders, which now become “your” creditors, as at this point “the state of lending policy” has changed, in that “you”are no longer “lending money” ,but agreeing to repay it”! This makes a huge difference to UK Finance Agreements” as they change their “status” just by the fact of being altered by “YOU”!

Up to that point you have being paying a set amount monthly and you signed up when you “purchased this agreement, with you signature and now you have changed it state of payment status”,so and thus you agreed “ALL Terms and Conditions” that applied at the time, that by the way could be “Altered” by them at any time! That is “onerous” to say the least, but now “YOU” have changed the “State in which the “contract exists” and as such you are no longer governed by the same rules that applied at start of contract!

So as not to put to finer point on it, once these “debt management companies” change or alter your agreements” by making “An arrangement with YOUR creditors” you must not ,miss one payment or you immediately and without question revert to “non forfeiture” of YOUR agreement”. Then every single penny you owe ,will be added onto the agreement plus “compounding interest” and they will “demand immediate payment in full” or court action will apply!

Now you know why l said at “step one be honest with yourself”is simply about being honest with the lenders” as in this regard it will “save you time and money”! By being honest about “the amount of your debts” you will be honest with lenders “about how much you can “comfortably afford as a payment under this NEW arrangement”.  As so many people say to “debt management companies” l can afford that amount, as l have overtime, or a good job or another reasons! It is the job of any “good debt management company or services” to get the best deal for “YOU” and not “THEM”! As remember “their fees” are based on a percentage of “YOUR” repayment as agreed by “YOUR” creditors, the higher they get “YOU” pay the more they charge in costs!

Step Three: Getting The Best Arrangement For YOU!

This is all up to your “Debt Management Company or Services” a good word “services” meaning to “serve” or “provide service”, not to themselves but to you their “customer” so choosing who to use, or trust becomes a minefield! So my advice is simply

If it feels right in your Heart” then you are 90% of the way there, in making the right decision. The other 10% is down to“cost for their “services” in other words”. What do l get for “MY Money”you see l have once again highlighted “MY” as to mean belong too ,as it is “YOUR” money not theirs!

My advice is at this stage ask for a “complete break down of their service costs in writing” so you can then assess the “true cost of using their company or not”! So being honest at outset with yourself and then the lenders, will then enable to decide ,who can l trust with “MY” money!

The answer is simple of course trust “NO ONE” they have to “prove” they can be trusted and it is not up to “YOU” to prove anything at all! Any company charging “upfront cannot be trusted” or any “company charging a % of you debts” “CANNOT” be trusted! You can only “TRUST” once the company has provided their “services” for nothing and delivered what they said in your contract with them, and not before! REMEMBER: They need you and you do not need them! But they also want you, but you do not want anything from them except, a great service at a great price ,with no strings attached! Then if the cost of their “Flat Fee Charges” seems fair and feels right in your heart, that is all “YOU” can do to “TRUST” you instinct! As it is all down to “THEIR” skill or lack of skills to get “YOU” the best arrangement possible, for “YOUR” money!

As from 2013 we no longer charge any fee for our services, either upfront or at completion but will make an arrangement with your creditors, that is both affordable and also can be paid into a designated banking arrangement for the lenders!  This amount will increase under any circumstances once we have it in writing and have confirmed it to you, it will be fixed until all your debts are clear. One small thing l should mention is do not stop the agreed payments or the lenders reserve to the right to reinstate original amount and add back all interest, also their will not be any third chances! So need to get good quality advice about “YOUR DEBTS” then email me at our new designated email address at get-out-of-debt@acefinance.me or leave a comment on this post or email it to need-help-to-with-debt@acefinance.me and l will contact everyone as soon as l possibly am able. 

Thank you for your support in 2012 and will provide more helpful advice in 2013.

Happy New Year

Kindest regards,

Editor {Ian Draper Ace News Group} 

#company, #creditor, #debt, #debt-consolidation, #debt-management-plan, #debtreductionanalysisplanexcercise, #drap, #financial-services, #loan, #payment

One Man’s Escape From Debt-Collection Hell (Excerpt)

I do not claim credit for every post being my own nor should l, so firstly l would like to say thanks to Huffpost Money and Michael Casey.

My personal views are this is how debt can seize you in its grip and it holds onto you like a alligator in its teeth. To break its grip firstly do not need to be scared of debt,its only money. Also secondly do not let people scare you who you owe debt! Once you master these first two, you can look at the problem squarely in the eye and tackle it head on.

Need help or guidance with debt management leave a comment l check all of them and vet each one and will send you a personal email, in reply. Lastly you do not always and in more cases than you realise, do you have to borrow more to get out of debt. You just need help and guidance too make an arrangement with your creditors!

This is one mans story called Joe an ordinary man like any other who just wanted to do right by his family. But he wanted to use his skills to improve his life by borrowing and this is the result!

HIS STORY-  Or as l prefer to call it hisstory repeating its self!

For Joe Bonadio, the years surrounding the U.S. financial crisis might best be described as the era of telephone battles.

For most of the 53-year-old professional drummer’s adult life, his home phone was a useful appliance. It was the conduit through which he would be informed of his next gig or advertising jingle contract. “Most of the time, it always seemed like the work just came on its own, through recommendations and people wanting to use me,” Bonadio said. “It came from the telephone and it seemed like the phone always provided.”

But all that came to an abrupt halt in late September 2008, two weeks after the collapse of Lehman Brothers, after he returned to New York from a recording job in Los Angeles.

“I came home and there were no calls. The phone had just stopped,” Bonadio said.

The lull extended into weeks and then months. In the meantime, Bonadio, assuming that the work would come back, continued with the lifestyle he’d been accustomed to, funding it with credit card debt.

Then, just over a year later, the phone started ringing again, relentlessly.

The callers were not musicians or advertising executives. They were debt collectors, and with a mix of recorded and personal messages they were urging him in increasingly strident tones to make a minimum payment on one of his three overdue credit cards. He had racked up a total of $50,000 in debts and there was no way of repaying them.

Advised by a debt counseling firm, Consumer Recovery Network, Bonadio had decided that his only escape was to seek a settlement with his creditors. Not only was his credit card debt expanding exponentially due to late fees and compound interest, but the exotic, interest-only mortgage that a Merrill Lynch advisor had talked him into three years earlier was ballooning out of control. Meanwhile, the real estate collapse had halved the value of his home. In deciding to go through what proved to be an exhausting settlement process, he was given a window into the ruthless debt-collecting methods of the same financial institutions whose reckless and often predatory lending practices had fueled the financial crisis that stripped him of his livelihood. And it all played out via the telephone.

As Bonadio quickly learned, a customer who falls behind on a credit card payment soon gets a phone call. At first it is a friendly reminder that the account is overdue. If that doesn’t prompt a payment, there will soon be more calls, occurring more frequently. Bonadio says that at one point he was receiving between forty and fifty calls a day from his three banks. Typically the calls are recorded messages, but if the recipient responds, a human being jumps on the line to suggest that the minimum payment be made. If the customer says he or she won’t or can’t make the payment, the bank representative will warn about a deteriorated credit rating and the perils of bankruptcy. At that moment, many debtors relent. In so doing they hand the bank a victory at their expense.

Here’s why the banks win: Based on the universally applied 29.9% default rate that Bonadio was paying on his total. By then he would have paid an additional $130,000 in interest.

In contrast, because of the front-loading effect of the interest paid when the loan was at its largest, the banks would have earned back the entire amount in just three and half years. What the bank desperately wants to avoid is Here’s why the banks win: Based on the universally applied 29.9% default rate that Bonadio was paying on his a six-month cut-off date. If payments aren’t received by then, it must write off the entire loan on its balance sheet, recognize the loss, and then fight with other unsecured creditors over what could be a measly payout from a drawn-out bankruptcy. That’s why it resorts to the telephone equivalent of saturation bombing during the first ninety days.

“They know what’s going to drive you nuts and that you are going to give them $60 just to shut the phone up,” said Bonadio. If just one of those calls hits its target and prompts a minimum payment, the clock kicks back to six months and the bank is in the clear. But if the customer reaches the fourth month with no payment, the game changes. Out of the blue, a settlement letter will arrive from the bank, offering to accept perhaps 50 or 60 cents on the dollar. The savvy debtor will politely demand something more generous. And the bank, weighing the cost of a lower settlement against that of a charge-off, will routinely concede. In Bonadio’s case, he settled with Citibank, JPMorgan Chase, and Bank of America for an average 31 percent of the total, a saving of $37,379. And while his course of action initially trashed his credit rating, the subsequent improvement in his overall finances later prompted it to rise.

Most debtors aren’t like Bonadio, though. Most cave in to the banks’ phone calls and make their overdue payments. Indeed, according to the moral code by which most of us live by, that should be the right thing to do.

But the financial crisis makes the ethics less clear cut.

Just like Joe Bonadio, it left millions trapped by ballooning mortgages sold to them by the same creditors who were demanding these payments. Banks had used complex, confusing and poorly explained financial products to exploit vulnerable people. This, along with the fact that the crisis that left so many of them out of work was clearly generated by the same banks’ zealous risk-taking, raises questions about the fairness of the interest penalties on their credit cards.

But even beyond the morality issue, there was a simple point of pragmatism. With so many Americans at that time buried in debt, to force them to perpetuate loans they could never repay was to prolong the chance of a recovery in the U.S. economy. And that meant that the banks themselves were unable to get back on their feet and revive a healthy, constructive business of credit creation.

Bonadio is one of the few who outwitted the system. Why? Not because of his steely resolve, but thanks to a device that the Consumer Recovery Network advised him to purchase: a caller ID machine with ring controller. With that little box, he could program the phone not to ring whenever calls came from a number associated with one of the banks’ debt collectors. The machine, he says, kept him sane. It also gave him the detachment and time to watch how the banks approached problems such as his.

The machine’s call log captured the entire combative process through which the banks fight to get an insolvent debtor to make a payment until it can’t afford to play that cynical game any longer. That perspective embittered Bonadio.

“I’m not a religious person,” he said, “but it is as if Satan said, ‘I want to be on earth,’ and God asked him, ‘What are you going to be?’ And he said, ‘I’m going to be a bank. ”

From the global financial crisis to the Flash Crash, it’s not hard to find reasons why people are increasingly disgusted with Wall Street and the world of finance generally. It’s also not hard to sympathize. Michael J. Casey, an editor and columnist for Dow Jones Newswires, has a new book, The Unfair Trade: How Our Broken Global Financial System Destroys The Middle Class, that is a guided tour of the many ways the global financial system is letting us all down. You might call it a Dante’s Inferno of Wall Street. But there’s hope in the book, too, hope that we’re not all doomed to an existence of being perpetually abused by global financiers. This excerpt shows how one man won a small victory against the system. — Mark Gongloff

(Adapted from The Unfair Trade: How Our Broken Financial System Destroys the Middle Class. Copyright © 2012 by Michael Casey. Published by Crown Business, a division of Random House, Inc.)

If you want to support our Free debt management consultancy visit my Facebook page and leave a comment. Or click the post related to this article and book and get yourself a copy and any monies l raise goes to support more people in debt. If you leave your email l will contact you and let you know how it was spent.

Wipe our Debt

Wipe our Debt (Photo credit: Images_of_Money)



  • English: CBO Long-Term Public Debt Scenarios

    English: CBO Long-Term Public Debt Scenarios (Photo credit: Wikipedia)

#bank-of-america, #bonadio, #credit-card, #debt, #jpmorgan-chase, #los-angeles, #merrill-lynch, #united-states