On March 28, 2017, the Consumer Financial Protection Bureau (CFPB) released its monthly complaint report. For the month of February 2017, the products and services generating the most complaints were debt collection, credit reporting, and mortgages, collectively representing over 60% of all complaints received. This is a shift over January, where the three most complained about products or services were debt collection, student loans, and credit reporting. On the whole, complaints decreased 10% compared to January 2017, with the bulk of the decrease stemming from a 51% decline in student loan complaints and a 10% decline in mortgage complaints.
Millennials are much more likely to use payday loans than any other age group in Canada, according to a recent survey by debt management company Hoyes, Michalos & Associates.
Nearly half of Americans don’t have enough in savings to cover a $400 emergency, according to a report from the Federal Reserve. In other words, 47% of the population is living paycheck to paycheck — so what can they you do when money runs short before the next check comes in? As you might guess from its name, that’s what a payday loan is for. A payday loan is a short-term, high-interest loan designed to bridge the gap between paychecks when you have an immediate need for cash. It’s generally recommended you use payday loans with caution (we’ll explain why in a minute), so before you take out a payday loan, here are some things you need to know.
A U.S. consumer financial watchdog on Thursday outlined plans to crack down on payday lending practices that leave borrowers with debt they cannot repay, and President Barack Obama touted the move as a contrast with Republican polices.
Azlinah Tambu, a twenty-two-year-old single mother who lives in Oakland, California, recently found herself in a tough spot. Her car had broken down, and she needed it to drop her daughter off at day care and to get to work. Tambu, an upbeat woman with glossy black hair and dazzling eyes, didn’t have the money for the repairs. She had no savings and no credit card; she had no family or friends who could help her. So she did what an increasing number of lower-income people do in such situations: she took out five payday loans from five different payday lenders, ranging from fifty-five dollars to three hundred dollars each. The fee to get the loans was fifteen dollars for each hundred dollars borrowed.