Consumer loan – Union Des Victimes De Letat http://uniondesvictimesdeletat.com/ Tue, 07 Sep 2021 08:09:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 http://uniondesvictimesdeletat.com/wp-content/uploads/2021/09/cropped-icon-32x32.png Consumer loan – Union Des Victimes De Letat http://uniondesvictimesdeletat.com/ 32 32 Boost your portfolio with these 3 best consumer loan stocks http://uniondesvictimesdeletat.com/boost-your-portfolio-with-these-3-best-consumer-loan-stocks/ http://uniondesvictimesdeletat.com/boost-your-portfolio-with-these-3-best-consumer-loan-stocks/#respond Fri, 03 Sep 2021 20:58:00 +0000 http://uniondesvictimesdeletat.com/boost-your-portfolio-with-these-3-best-consumer-loan-stocks/ With the S&P 500 Index surging past 4,500 points, it’s time to take a look at one of its best performing sectors, which is consumer loans. The performance of Zacks’ consumer loans sector with a cumulative return of 48.1% is impressive. During the same period, the S&P 500 Index gained 21.8%. Zacks’ Consumer Loans Industry […]]]>

With the S&P 500 Index surging past 4,500 points, it’s time to take a look at one of its best performing sectors, which is consumer loans. The performance of Zacks’ consumer loans sector with a cumulative return of 48.1% is impressive. During the same period, the S&P 500 Index gained 21.8%.

Zacks’ Consumer Loans Industry is a group of 19 stocks within the larger Zacks Finance industry. The industry currently holds a Zacks Industry Rank # 57, which places it in the top 23% of over 250 Zacks industries.

Although last year the pandemic crippled business activities globally and locked people inside for months as governments imposed stay-at-home orders everywhere, the economy is now reopening. and takes an encouraging momentum. This is evidenced by the increase in real gross domestic product (GDP) at the rate of 6.3% and 6.6% in the first and second quarters of 2021, respectively. President Joe Biden’s heavy pandemic relief program and large-scale vaccination programs across the United States have been helping this recovery process for some time now.

The near-term outlook looks bright as the continued improvement in the domestic economy and strong economic data will continue to support demand for student, auto and card loans. Improving consumer confidence, falling unemployment rates and increasing disposable income are expected to boost the performance of consumer credit securities over the coming period. These factors are also expected to slightly increase demand for mortgages.

TransUnion data for the second quarter of 2021 points to a strong resurgence in the auto, credit card, personal loan and mortgage industries. We expect all financial institutions to see similar trends in the near term as well, provided COVID-19 cases decline steadily, reopening plans remain in place, and consumer spending levels remain robust. Even the Fed data reflected a similar upward trend in the second quarter of 2021 for consumer credit cards, student loans and auto loans.

An increase in auto lending in the June quarter despite rising vehicle prices due to supply shortages suggests and the rise in lending is expected to gain ground in the coming period, aided by strong consumer resilience and optimistic sentiment surrounding the economic recovery.

Consumer credit card defaults are at historically low levels and mortgage lending activity in the country is on the rise. Refinancing exceeds purchase volumes as consumers take advantage of extremely low rates.
While new home buying activity is still strong, rising house prices could exclude some borrowers from the market. The appreciation in home values ​​has propelled mortgage balances to record highs and we expect origination volumes to remain strong in the near term. Easing credit standards helps consumer loan providers meet high demand for loans.

The Federal Reserve cut interest rates to near zero in March 2020 in an effort to pull the US economy out of the coronavirus-induced downturn. However, at the FOMC meeting in June, officials pointed out in their so-called “dot-plot” that there could be two rate hikes by the end of 2023. Thus, the growth in the margin Net interest income as well as the net interest income of consumer credit companies are expected to improve over the next few quarters.

Despite a number of lingering concerns including mutations in the coronavirus, the aforementioned findings are creating optimistic feelings among consumers. Thus, these favorable winds should help consumer loan providers see an improvement in delinquency rates.

So now is a good time to add a few consumer loan stocks to your investment portfolio, which will help generate healthy returns going forward.

3 consumer credit stocks to bet on

We focused on three consumer loan stocks within the broad universe of stocks. These stocks are currently Zacks # 1 (strong buy) or 2 (buy) and have risen over 40% in the year so far. You can see The full list of today’s Zacks # 1 Rank stocks here.

Based on the above criteria, we have chosen Ally Financial Inc. ALLY, Credit acceptance company CACC and Global Acceptance Company WRLD.

Before we discuss the fundamental strengths and outlook for these stocks, let’s take a look at the chart showing how the stock price of these companies has changed since the start of the year.

Image source: Zacks Investment Research

Credit acceptance company: Headquartered in Southfield, MI, the company provides financing programs and related products and services to auto dealers in the United States, enabling them to sell vehicles to consumers regardless of their credit history. In addition, it reinsures coverage under vehicle maintenance contracts sold to consumers by dealers on vehicles financed by the company.

As the economy reopens and recovers, the company’s financial charges are expected to continue to improve, supported by increased demand for auto loans. In addition, a decent increase in dealer registrations and more active dealers should support revenue growth. The company’s consistent capital deployments are commendable, as it will continue to improve its shareholder value.

Credit Acceptance’s profit estimates have moved 24% north to 2021 in 60 days, indicating a 108.9% increase from the figure released a year ago. Likewise, the 2022 profit estimates were also revised upward by 2.1% over the same period. The stock currently sports a Zacks Rank # 1.

Global Acceptance Company: It operates like a small loan consumer credit business. The Company offers short-term small payment loans, medium-term larger payment loans, related credit insurance, and ancillary products and services to individuals. It also offers tax preparation services to its lending clients and other individuals.

It is well positioned to take advantage of the favorable imbalance of supply and demand in the area of ​​non-senior loans. With loan and credit growth moving in the right direction, World Acceptance’s strong cash flow has enabled its operations with low leverage. The company offers simple and attractive products to an underserved clientele, focusing on the stability, ability and willingness of each client to repay loans. No state has a lending concentration greater than 21%, thus describing a geographic diversification of lending. That aside, his detailed underwriting skills coupled with a robust collection process have led to rapid portfolio growth in recent years.

Profit estimates have been revised up 24.9% and 29.5% for 2021 and 2022, respectively, over the past two months. Additionally, the stock currently displays a Zacks rank of 1.

Allied financial: The company offers a wide range of financial products and services, primarily to auto dealers and their customers. The Detroit, Michigan-based company is diversifying into mortgage and wealth management services, and working to improve its digital offerings. The acquisitions of TradeKing and Health Credit Services (a point-of-sale payment provider) will likely help improve its product portfolio.

Strong origination volumes, growth in retail loans, rich deposit balances and inorganic growth efforts to enrich its product menu will continue to increase Ally Financial’s prospects. In addition, the company’s strong balance sheet and strong capital deployments are its main catalysts.

Zacks’ consensus estimate for 2021 earnings rose 26% north to $ 8.18 in two months. This implies an increase of 169.97% compared to the figure reported a year ago. Likewise, the consensus estimate of 2022 profits has been revised upwards by 12.3% over the same period. The stock currently carries a Zacks Rank # 2.

Technological IPOs with huge profit potential: Last year, major IPOs jumped 299% in the first two months. With record amounts of cash flowing in IPOs and a record stock market, this year could be even more lucrative.

View Zacks Hottest Tech IPOs Now >>

Click to get this free report

World Acceptance Corporation (WRLD): Free Inventory Analysis Report

Credit Acceptance Corporation (CACC): Free Stock Analysis Report

Ally Financial Inc. (ALLY): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks investment research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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People lose while falling into the consumer loan trap http://uniondesvictimesdeletat.com/people-lose-while-falling-into-the-consumer-loan-trap/ http://uniondesvictimesdeletat.com/people-lose-while-falling-into-the-consumer-loan-trap/#respond Fri, 27 Aug 2021 05:29:34 +0000 http://uniondesvictimesdeletat.com/people-lose-while-falling-into-the-consumer-loan-trap/ Some people who did not make enough money because of the Covid-19 and had to borrow money have fallen into the traps set by the loan sharks. Hoang Van Thanh from Cau Giay District in Hanoi, for example, said he once received a call from a strange number. The appellant introduced himself as the representative […]]]>

Some people who did not make enough money because of the Covid-19 and had to borrow money have fallen into the traps set by the loan sharks.

Hoang Van Thanh from Cau Giay District in Hanoi, for example, said he once received a call from a strange number. The appellant introduced himself as the representative of a finance company specializing in the granting of consumer credit.

The man said Thanh could meet requirements to borrow VND 35 million at zero percent interest as part of a program to support people affected by the pandemic.

The man told Thanh to download an app on his cell phone and go through the procedures to get his loan. After the procedure was completed, Thanh was asked to pay a deposit of VND 3.5 million into the company’s account. The sum of money will be returned to Thanh with the loan, worth VND 35 million.

However, Thanh did not receive any loans, although he failed to contact the man. As such, he lost 3.5 million VND.

Thanh Thuy in Ninh Binh told reporters that she received a message stating that she was eligible for a loan worth VND 50 million and that she had to pay a fee of VND 4 million.

As Thuy did not have 4 million VND, he was advised to borrow this amount of money from an app. After paying a “fee” worth VND 4million and completing the account login steps, she saw the notice that the account had been frozen.

When she contacted the person who sent the message, she was told that she had made a mistake while logging into the account, so she was unable to get approval for the VND 50million loan and she had to pay a fee of VND 10 million.

Thuy again had to borrow VND 10 million from other apps to pay the “fees”. However, she was unable to access the VND 50 million loan as promised.

Thuy realized that she had been deceived and that the applications which had lent her 14 million VND belonged to the same network. She decided she would not pay the debts. However, she was harassed daily by lenders, who made hundreds of calls demanding payment of her debt, insulting and threatening her.

VietCredit legal experts said that scammers today are using very sophisticated tricks to defraud people.

They lend money through an app called Space, while using names similar to the names of finance companies, and illegally use information about head offices and branches of finance companies to cause misunderstandings, which helps them to recover the borrowers’ money.

At first, the crooks approach people who want to borrow money through Zalo, and offer them attractive loans. They ask borrowers to install apps and then ask borrowers to put down a down payment to prove their creditworthiness. They say that the deposits will be repaid when the borrowers receive the loans.

Another trick used by scammers is to pretend to be executives of financial companies and ask people to provide personal information (ID card, bank account number, OTP e-wallet, etc.)

After obtaining information, crooks withdraw money from borrowers’ bank accounts through e-wallet transactions and block all contacts.

Many people who were victims of the fraud reported that the crooks who contacted them claimed to be from the financial company VietCredit.

However, VietCredit stated that they were just impostors and that any institution or application called “Space” had no relation to VietCredit. VietCredit does not require borrowers to make a down payment to prove their creditworthiness.

A representative of VietCredit recommended that borrowers do not provide any personal information to strangers in any form.

Lawyer Truong Thanh Duc said that no financial company or commercial bank provides loans with such simple procedures, and people should be wary of lenders who disburse money so easily. When borrowing money, people have to go to the head offices of banks or finance companies and follow the necessary procedures.

Tran Thuy

“Black credit” lenders pose a serious threat to borrowers

Experts have repeatedly sounded the alarm bells about black credit, which has serious consequences for families and society.

Over 6.4 million poor households have access to social policy bank loans

Over 6.4 million poor households have access to social policy bank loans

By March, more than 6.4 million poor and near-poor households had obtained loans from the Vietnamese Bank for Social Policies (VBSP).


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BMO and Scotia beat expectations, but consumer loan growth still languishes http://uniondesvictimesdeletat.com/bmo-and-scotia-beat-expectations-but-consumer-loan-growth-still-languishes/ http://uniondesvictimesdeletat.com/bmo-and-scotia-beat-expectations-but-consumer-loan-growth-still-languishes/#respond Tue, 24 Aug 2021 07:00:00 +0000 http://uniondesvictimesdeletat.com/bmo-and-scotia-beat-expectations-but-consumer-loan-growth-still-languishes/ Breadcrumb Links PF Finances Banking Both banks benefited from sharp declines in bad debt provisions Author of the article: Stefanie Marotta Release date : August 24, 2021 • August 24, 2021 • 5 minutes to read • Join the conversation The Bank of Nova Scotia made $ 2.54 billion in the third quarter, or $ […]]]>

Both banks benefited from sharp declines in bad debt provisions

Content of the article

The Bank of Nova Scotia and Bank of Montreal posted third quarter profits that beat analysts’ expectations on Tuesday, as the economy reopened following pandemic restrictions freed millions of dollars in loan loss provisions and gave once-stifled personal and business banking operations a boost.

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Canada’s third and fourth largest lenders have both benefited from large declines in provisions for credit losses, which are funds banks must keep in reserve to cover potential losses from defaults. At the start of the pandemic last spring, banks set aside billions to cover possible bad loans due to job losses and business closings. But the loans have not yielded the expected results, and increasing vaccination rates and easing economic restrictions have given banks the flexibility to unlock these contingency funds, even as the highly contagious Delta variant. , looms.

Scotiabank set aside $ 380 million for the fiscal quarter that ended July 31, up from $ 496 million in the second quarter and $ 2.18 billion in the same period last year. BMO, meanwhile, recorded a recovery of $ 70 million in provisions, a turning point from the $ 60 million it hid in the second quarter.

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“Overall, there’s no denying that BMO had another strong third quarter,” Scotiabank analyst Meny Grauman said in a note to clients. “That said, it’s important to point out that the very big beating of the streets was driven by much lower than expected securities gains (provisions for credit losses) and high securities.”

Scotiabank earned $ 2.54 billion in the third quarter, or $ 1.99 per share, compared to $ 1.04 per share in the same period a year earlier. Adjusted to exclude certain items, the lender said it was making $ 2.01 per share, beating analysts’ expectations of $ 1.90 per share, according to Bloomberg data.

BMO reported earnings of $ 2.28 billion, or $ 3.41 per share, compared to $ 1.81 per share in the same quarter of 2020. After adjusting for one-time items, the bank said it earned 3.44 $ per share, exceeding the average analyst estimate of $ 2.94 per share. , according to Bloomberg.

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As pandemic restrictions loosen and consumer spending increases, analysts are also watching a rebound in loan growth, which collapses as Canadians – largely confined to their homes – pocket their money.

Scotiabank’s Canadian banking division posted a strong rebound from the same period last year, in large part due to the recovery of provisions for credit losses, posting a profit of $ 1.08 billion, up sharply up from $ 429 million. Income was up twelve percent year-over-year, driven by fees and a ten percent jump in residential mortgages as homebuyers poured into the booming housing market. Business loans also jumped 7% as owners reopened restaurants, theaters, gyms and retail stores.

BMO’s personal and commercial banking business in Canada more than doubled profits to $ 815 million. Although it was also largely supported by the decline in provisions, the income of the bank’s largest segment grew 14% year-over-year, supported by a 12% jump in mortgages and a 2% increase in commercial loans.

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But the ongoing economic recovery has yet to act on the decline in personal loans, which have weighed on bank income and signal that consumer spending has yet to recover to pre-pandemic levels. Scotiabank posted a 1% decline in personal loans and 10% in credit cards from a year ago, while card balances were flat from the previous second quarter. Similarly, personal loans were down 1% and business loans were down 18% at BMO.

“The spending levels that we are seeing in Canada by retail customers (are) close to pre-COVID levels,” Scotiabank CFO Raj Viswanathan said at a virtual press conference on Tuesday, noting that they “saw a lot of activity” on credit and debit cards.

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In Scotiabank’s international division – which covers Central America, South America and the Caribbean, but mainly focuses on Chile, Colombia, Mexico and Peru – this recovery is a quarter behind , said Viswanathan.

“We have seen some contraction of unsecured loans in their balances, which we expect the next quarter to be stable,” he said.

International division profit nonetheless climbed to $ 486 million, boosted by a sharp drop in provisions, even as economic and political pressures in the region continued to dampen. Commercial loans fell 8% and personal loans and credit cards fell 11%, while residential mortgages slightly offset the decline with a gain of 6% from a year ago.

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“GDP forecasts in the Pacific Alliance countries tend to rise, and travel to the Caribbean is expected to pick up with vaccination rates,” CIBC analyst Paul Holden said in a note to clients . “We see the potential for higher consensus estimates as confidence in a more comprehensive recovery sets in.”

In the United States, BMO’s profit more than doubled to $ 553 million from a year earlier.

Particularly attention was drawn to the financial market divisions of banks as the frantic pace of transactions at the start of the year, which helped boost profits, slowed down over the summer months. The profit of the World Bank and Markets division of Scotiabank fell 14% from the same period last year.

But activity in the financial markets jumped at BMO. Net income jumped 31% to $ 558 million from a year ago, also supported by lower provisions, as well as a 4% increase in revenue from higher stock trading, news issuance of debt securities and higher subscription fees.

Wealth management boosted profits for both banks as clients rushed to grab high-end valuations and invest excess cash accumulated during the pandemic. Scotiabank’s Wealth Management division – bolstered by the acquisitions of Jarislowsky Fraser and MD Financial Management in recent years – reported profit of $ 390 million, an increase of 21% over the same period a year earlier. BMO’s Wealth Management division recorded an 18% increase in revenues over the previous year.

• Email: smarotta@postmedia.com | Twitter:

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Require loans now but continue to be rejected? Once your consumer loan tool is refused, “is it possible to start over?” Can completely wrong question. Surprised? | http://uniondesvictimesdeletat.com/require-loans-now-but-continue-to-be-rejected-once-your-consumer-loan-tool-is-refused-is-it-possible-to-start-over-can-completely-wrong-question-surprised/ http://uniondesvictimesdeletat.com/require-loans-now-but-continue-to-be-rejected-once-your-consumer-loan-tool-is-refused-is-it-possible-to-start-over-can-completely-wrong-question-surprised/#respond Fri, 20 Aug 2021 00:30:51 +0000 http://uniondesvictimesdeletat.com/require-loans-now-but-continue-to-be-rejected-once-your-consumer-loan-tool-is-refused-is-it-possible-to-start-over-can-completely-wrong-question-surprised/ August 19 As it happens, if you don’t achieve success early on, continuing to apply over and over again could be the wrong way. And here are the reasons why. First, it could lower your credit rating. We submit a request for financing as the bank / lender / credit arrangement makes a difficult question. […]]]>


August 19

As it happens, if you don’t achieve success early on, continuing to apply over and over again could be the wrong way. And here are the reasons why.

First, it could lower your credit rating. We submit a request for financing as the bank / lender / credit arrangement makes a difficult question. The result? Your credit score drops (from five to ten things). One person gets the next one while the steps repeat (once again 5-10 info down).

2. In the eyes of the lender, you look like a risky customer.

The reasoning seems, no matter what you really want credit for, finding the best way to get approved certainly makes sense.

“Okay, what should I do if I want a home loan quickly?” “

Emergency expenses that arise unexpectedly make no difference to everyone. Positively, dealing with this credit can be difficult, but lending money from a loan provider should be their final measure.

“We would frantically love this loan. But I don’t want to be denied.

In these days when you’re empty-handed, borrowing money can be difficult. Yet the fact remains, you have options.

However, if a mortgage matches your containers, there is something available that increases your chances of confirmation.

How to prevent assertiveness when you really need credit

The first step towards approval is to achieve your credit rating. While you are one hundred percent sure that your own credit is in fact in excellent condition, research them.

How will you trust someone rather than yourself? Are you sure there are no errors in the document?

Error free credit history and credit score are considered the main factor.

The record for constant and reliable jobs is certainly the second.

Not only typical repayment traditions, unstable or minimal income streams, or windfall debt can be another reason for not just being recommended. The point is that new work might also limit your likelihood of agreeing.

While you are a witness there is enough to deal with before you decide to use. Therefore, do your homework. Or, we cannot improve your own possibilities of remaining recommended.

In the hours when credit scores range from 300 to 850, it is generally believed that bad credit is below 600. There are two main scoring models: FICO and VantageScore. Both are generally used frequently when looking at the United States.

While less than perfect credit can make day-to-day debt life miserable, there is rarely a reason not to get financing. How bad does your credit score have to be? What are the basics of this? Therefore, once you have the answer, find out your alternatives.

Are refused before now? Or even if you had to pay a burglar alarm deposit for your utility company?

Whatever the need, you probably realize that your own account is no good. The great thing is what is definitely not the tip. If you continue to monitor your own accomplishments, you have some suggestions.

Personal loan for personal payment, personal loan, car or real estate loan, the list goes on and on. So no matter what credit you will need with really bad credit, the journey begins with their score.

Whenever you need to quickly borrow money, don’t tone it down. Below-average credit financial loans to the rescue.

When you need private financing with an overall credit score of 550, a traditional lender may appear in your mind to be the main option. So far, your bad credit rating leads you to choose more flexible qualifying needs.

The point is, the list of available choices also includes payroll progression and personal loans for your retirement profile. Extremely, the choices vary.

Whether you like them or not, fundraising tends to be part of the blessing process.

“What exactly do you want a home loan now with bad credit?” “

First of all, maybe not worry. Many creditors are focused on employing below average credit applicants.

Second, be aware of the reasons behind their bad credit because you are ready to make things right.

“No Credit Score Assessment” implies that a loan provider is not getting your credit score from the credit bureaus.

There may simply be several financial institutions that are able to provide funds to people with poor credit and no background assessment. However, you will want to meet other criteria less. So a stable job with a minimum of $ 1,000 per month is really one of them.

Even though the number of lenders helping those in need of unsecured loans differs, the selection can be difficult. Each loan provider has their own payment terms and specifications, but bad credit doesn’t mean you won’t be accepted.

“I need a home loan these days. Tips speed up acceptance?

In times when every minute of your trial counted, choosing from dozens of available lenders isn’t a choice at all. You might not think it’s great, but consent procedures take time to work. Be prepared to wait.

“I wanted a payday loan. How much will it just cost? “

It differs. Likewise, the volume of loan providers varies, as does the number of charges and interest rates.

Need to close the best imaginable selection? Take care of your credit score. Discover the vulnerable side and confirm that this is a once in a lifetime circumstance that will never happen again.

“Now I need credit ASAP with below average credit, but I’m afraid of being rejected. “

Ok, I need this loan with a low credit score. The first thing to consider here is a larger expense. Extremely, if there are no other options available in an emergency, get them.

Ensure this is a manageable individual spending plan. Sure you can overcome the tariffs? Do it.

You can also find financial institutions that allow you to pay off the loan early. As a result, you save on fees and impact your credit history.

By choosing online short term loan financial institutions, you can easily go for anything from one hundred dollars to $ 2,000, but the level can change.

Whether it’s a last minute article for your own spouse or a specialist crisis bill, use North Dakota online payday loans for the proper purpose. Need Correct Financial Loans? Recognized for its effectiveness, Internet-based light financing makes it possible to surf today.

“I want this loan now, you should help. “

Regardless of what is in serious need of the money, compare the suggestions. We all have unique finances and there isn’t one solution that fits everyone.

Check out a lender’s market to get started. There you will discover several loan providers who are able to help people who want to lend these days. After that, rate and filter those that present a much better choice.

“I wanted a private mortgage but we have below average credit. Any type of options? “

Confidence factor, unsecured loans are not a panacea, but they serve really well if used with precision. On top of that, you should consider a debit card cash advance, overdraft, see help from friends and family, or take advantage of their family savings.

The selection is huge, every time you find out. Finally, if you are unsure of the management, evaluate the alternatives to reap the benefits of the best selection.

When are you currently denied? No worries, you are not the only one. The large amounts of services do not guarantee that it is too.



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Consumer loan ABS survived COVID-19 http://uniondesvictimesdeletat.com/consumer-loan-abs-survived-covid-19/ http://uniondesvictimesdeletat.com/consumer-loan-abs-survived-covid-19/#respond Tue, 06 Jul 2021 07:00:00 +0000 http://uniondesvictimesdeletat.com/consumer-loan-abs-survived-covid-19/ Amid the economic recovery from the COVID-19 pandemic and the reopening of the US economy, consumer-related debt has taken a surprising turn, generating better-than-expected credit performance. But market watchers say the conditions that made better consumer credit possible, especially consumer installment loans, are unlikely to recur in the next economic downturn. While consumers benefited from […]]]>

Amid the economic recovery from the COVID-19 pandemic and the reopening of the US economy, consumer-related debt has taken a surprising turn, generating better-than-expected credit performance. But market watchers say the conditions that made better consumer credit possible, especially consumer installment loans, are unlikely to recur in the next economic downturn.

While consumers benefited from major programs like student loan and mortgage forbearance programs, they took advantage of the windfall to pay off debts and accumulate savings.

“Unprecedented levels of federal relief, such as improved unemployment benefits, direct stimulus payments, and sweeping abstention programs, have supported credit performance in consumer loan markets during the pandemic,” Bank of America Global Research Team ABS strategist Elana Lipchak said in a statement. email response.

Asset-backed trusts continue to see the benefits of how consumers have allocated their stimulus and relief payments. Consumer loan ABSs, like other consumer debt securities, have performed better than expected, even in recent months, according to Bank of America Securities.

Part of that performance is due to the lending segment of the market, which has accounted for just over a third, 33%, of the total volume of consumer loan ABS since the start of the year, according to BofA.

The net loss rate of market loan ABS was 4.4% in May 2021, slightly above its low point of 4.3% in October 2020, according to the most recent data available.

In the year before the pandemic, the range of net losses was 6.0% to 8.5%, and was still lower than the 12% it reached in 2016 and 2017. This was in part due to some market dynamics that had deprived the ABS loan pipeline market of new business to begin with. A difficult economic environment in 2020 reduced the demand for loans. In addition, market lenders have diversified their sources of funding, acquiring banks or issuing transmission securities. With respect to the latter, the sponsors of structured finance loan agreements in the market have issued approximately $ 7.6 billion in transmission certificates.

With all the support, the sharp increases in unemployment rates have not translated into an increase in defaults, unlike previous recessions. Granted, the unemployment rate hit 14.7% in April 2020, a shocking increase from 3.5% in February 2020, according to data from the Bureau of Labor Statistics.
Economic indicators have improved considerably over the past year. The unemployment rate fell to 5.9%, while observers expected it to drop to 5.6%. The change coincided with the economy adding 850,000 jobs to the payroll in June, exceeding the estimate of a 720,000 payroll gain.

The state of the economy now looks bright, but Bank of America’s concern is the next recession, Lipchak said.

“The government cannot take such extraordinary measures,” she said. If that happens, Lipchak added, the bank expects the normal relationship between rising unemployment and rising delinquencies and defaults to take shape.

When it comes to an asset securitization collateral pool, personal installment loans typically rank at the bottom of the payment hierarchy after auto loans, mortgages and rents, and credit cards.

“This should lead to weaker credit performance,” Lipchak said. The short-term picture looks more positive. “The improving employment situation, the continued benefits of stimulus and savings, and stricter underwriting standards are expected to be favorable through the end of 2021.”

What is a real lender?

Recently, President Joseph Biden signed a resolution repealing an Office of the Comptroller of the Currency regulation that determined when a national bank or federal savings association made a loan and was identified as the so-called true lender.

The rule, adopted just last October, stipulated that a bank is a true lender of a loan when it is named as the lender in the loan agreement and finances the loan, at the time of origination. Also, if at the time of origination, a bank is named as the lender in the loan agreement and another bank funds the loan, the bank named as the lender in the agreement finances the loan, Lipchak said.

Thus, as a true lender, the bank will retain the compliance obligations associated with the financing.

But President Biden’s permission for the repeal introduces uncertainty into the asset class, in a way that would increase legal uncertainty, discourage partnerships and dampen the innovations that emerge from those partnerships, Lipchak said.


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Illinois Governor Signs Law Capping Consumer Loan Rates at 36% http://uniondesvictimesdeletat.com/illinois-governor-signs-law-capping-consumer-loan-rates-at-36/ http://uniondesvictimesdeletat.com/illinois-governor-signs-law-capping-consumer-loan-rates-at-36/#respond Tue, 23 Mar 2021 07:00:00 +0000 http://uniondesvictimesdeletat.com/illinois-governor-signs-law-capping-consumer-loan-rates-at-36/ Illinois Governor JB Pritzker on Tuesday signed a bill that will cap rates at 36% on consumer loans, including payday loans and car titles. The Illinois General Assembly passed the law, the Predatory Loan Prevention Act, in January, but the bill was waiting for the governor’s signature to make it law. Introduced by the Illinois […]]]>

Illinois Governor JB Pritzker on Tuesday signed a bill that will cap rates at 36% on consumer loans, including payday loans and car titles.

The Illinois General Assembly passed the law, the Predatory Loan Prevention Act, in January, but the bill was waiting for the governor’s signature to make it law.

Introduced by the Illinois Legislative Black Caucus, the new legislation signed is modeled on the Military Lending Act, a federal law that protects serving military personnel and their dependents through a series of guarantees, including capping interest rates on most consumer loans at 36%.

“The Predatory Loan Prevention Act will significantly prevent any entity from granting usurious loans to Illinois consumers,” Pritzker said on Tuesday. “This reform offers substantial protections to low-income communities so often targeted by these predatory exchanges.”

With its passage, Illinois is now one of 18 states, along with Washington DC, that impose a 36% cap on interest rates and fees on payday loans, according to the Center for Responsible Lending.

Before the legislation, the average annual rate (APR) for a payday loan in Illinois was 297%, while auto title loans averaged an APR of around 179%, according to the Woodstock Institute, an organization which was part of a coalition formed in support of the legislation. Illinois residents pay $ 500 million a year in payday and securities lending fees, the fourth highest rate in the United States, the Woodstock Institute has calculated.

“Hundreds of community groups, civil rights organizations, religious leaders and others have joined the Legislative Black Caucus to push for historic reform,” Lisa Stifler, director of the Legislative Assembly, said Tuesday. state policy at CRL. “As the bill becomes law, Illinois joins the strong trend across the country of exceeding rate limits to stop predatory lending.”

But some organizations, including the Illinois Small Loan Association, have already expressed concern about the general nature of the bill and its potential to completely eliminate access to small consumer loans within the state.

Steve Brubaker, who lobbies for the organization, told a local Chicago news station that high APRs can be misleading because the average fees (including interest) for a typical two-week payday loan are about $ 15 for every $ 100 borrowed.

The Online Lenders Alliance said Tuesday it was disappointed Gov. Pritzker signed the law, saying it was a “bad bill” for residents of the state of Illinois.

“Now is not the time to reduce access to credit. Illinois consumers are struggling, and elected officials should strive to ensure all consumers have options for dealing with unforeseen or irregular expenses. Unfortunately, this bill eliminates many of those options for those who need them most, ”Alliance CEO Mary Jackson said Tuesday.

Still, supporters of the bill say it can help limit predatory lending. More than 200 million Americans still live in states that allow payday loans without heavy restrictions, according to CRL. And these loans are easy to obtain. Typically, consumers simply need to enter a lender with valid ID, proof of income, and a bank account to get a payday loan. The balance on these types of loans is usually due two weeks later.

Yet high interest rates and short lead times can make these loans expensive and difficult to repay. Research by the Consumer Financial Protection Bureau has found that almost one in four payday loans are re-borrowed nine or more times. Additionally, borrowers take about five months to repay loans and cost them an average of $ 520 in finance charges, reports The Pew Charitable Trusts. This is in addition to the original loan amount.

Communities of color, in particular, are targeted by these types of high-cost loans, CRL reports. “As Covid continues to ravage these communities, ending predatory debt traps is critical,” Stifler said. “We must also pass federal reforms, to protect these state ceilings and extend the protections across the country.”

To verify: Use this calculator to see exactly how much could be worth your third coronavirus stimulus check

Don’t miss: Payday Loans Can Have Interest Rates Over 600%: Here Is The Typical Rate In Every US State



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Guaranteed BBVA presents a consumer loan to buy solar energy systems http://uniondesvictimesdeletat.com/guaranteed-bbva-presents-a-consumer-loan-to-buy-solar-energy-systems/ http://uniondesvictimesdeletat.com/guaranteed-bbva-presents-a-consumer-loan-to-buy-solar-energy-systems/#respond Mon, 08 Feb 2021 08:00:00 +0000 http://uniondesvictimesdeletat.com/guaranteed-bbva-presents-a-consumer-loan-to-buy-solar-energy-systems/ BBVA guaranteed supports the fight of Turkey against climate change thanks to innovative sustainable finance solutions. In collaboration with Solarçatı, Guaranteed BBVA will offer affordable interest rates for individual solar energy system installation loans. In addition, as part of the collaboration with Solarçatı, Garanti BBVA customers who apply for consumer loans will benefit from discounts […]]]>

BBVA guaranteed supports the fight of Turkey against climate change thanks to innovative sustainable finance solutions. In collaboration with Solarçatı, Guaranteed BBVA will offer affordable interest rates for individual solar energy system installation loans. In addition, as part of the collaboration with Solarçatı, Garanti BBVA customers who apply for consumer loans will benefit from discounts of up to five percent. As a result, customers’ costs for their financed purchases are reduced.

Guaranteed BBVA has played a key role in the expansion renewable energy Across the country, injecting more than $ 5.2 billion. “We have added another innovative product to those we have been implementing for more than 15 years in the context of sustainable finance. For the first time in Turkey, we have adapted the consumer credit product for the installation of rooftop solar energy systems, ”added Ebru Dildar Edin, Executive Vice President of Garanti BBVA.

Among its main advantages, Edin pointed out that the installation of solar power systems on the roofs of buildings and houses will prevent carbon emissions, thus contributing to the fight against climate change. In addition, users can earn income from the production of excess electricity. According to the vice-president, “Thanks to the collaboration with Solarçatı and the new loan product, private customers can obtain a loan in five minutes and enjoy the advantages of the installment payment to install solar panels on their roofs. “

Mahmut Akten, Executive Vice President of Garanti BBVA, also commented on the subject: “Garanti BBVA has launched the loan for self-consumption of solar energy systems in order to reduce Turkey’s dependence on the energy produced abroad and expand the market share of renewable energies. . “

Akten said users who get energy from this renewable source will generate their own electricity and avoid paying electricity bills. They will also be able to sell their excess energy to the electricity grid. The number of people interested in installing solar energy systems on homes and buildings continues to grow, and Garanti BBVA is working with Solarçatı to help meet this demand. “We are eager to see how the facilities contribute to Turkey’s energy consumption,” Akten concluded.

What are solar energy systems?

Rooftop installation of solar power systems uses solar energy to generate electricity for use in buildings and homes. Solar panels are one of the most environmentally friendly methods of generating energy and running year round, whenever there is sunlight. Solar panels, which do not use any form of fuel, generate electricity for 25 years. In addition to saving money on electricity bills, users of solar energy systems also generate income by selling the additional energy they produce. If for a month they produce more energy than they consume, the excess returns to the electricity grid and the corresponding amount is deposited into users’ bank accounts. Therefore, users only pay the difference during the months when their energy consumption exceeds production.

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Illinois to cap consumer loan interest rates, lenders face penalties and other relief | Hinshaw & Culbertson – Consumer Hub http://uniondesvictimesdeletat.com/illinois-to-cap-consumer-loan-interest-rates-lenders-face-penalties-and-other-relief-hinshaw-culbertson-consumer-hub/ http://uniondesvictimesdeletat.com/illinois-to-cap-consumer-loan-interest-rates-lenders-face-penalties-and-other-relief-hinshaw-culbertson-consumer-hub/#respond Wed, 20 Jan 2021 08:00:00 +0000 http://uniondesvictimesdeletat.com/illinois-to-cap-consumer-loan-interest-rates-lenders-face-penalties-and-other-relief-hinshaw-culbertson-consumer-hub/ On January 13, the last day of the six-day session of the Illinois Legislature, the General Assembly passed the Illinois Predatory Loan Prevention Act (PLPA) as part of SB 1792. The PLPA caps annual percentage rates for consumer loans at 36% for both open and closed loans. The 36% APR is to be calculated using […]]]>

On January 13, the last day of the six-day session of the Illinois Legislature, the General Assembly passed the Illinois Predatory Loan Prevention Act (PLPA) as part of SB 1792.

The PLPA caps annual percentage rates for consumer loans at 36% for both open and closed loans. The 36% APR is to be calculated using the military annual percentage rate calculation system under federal law, which is widely considered to be an “all-in” method of calculating rates and charges. The Illinois Department of Financial and Professional Regulation (IDFPR) may issue rules relating to the law.

The General Assembly has 30 days to send the bill to the governor, and the governor has 60 days to sign it. The bill is expected to be largely signed by the governor, making the last possible effective date March 23, 2021. The cap rate will be imposed on all loans made from the effective date.

Loans which contravene the Act are considered null and uncollectible. In addition, the IDFPR can issue a cease and desist letter and a fine of $ 10,000 against lenders who break the law. Violations of the law constitute violations of the Illinois Consumer Fraud and Deceptive Marketing Practices Act, thereby increasing penalties and other remedies.

A lender is broadly defined as any person who is involved in offering, arranging or granting a loan, or who has an interest in a loan. The law expressly covers transactions that are a disguised loan or subterfuge for the purpose of avoiding PLPA. Banks, savings banks, savings and credit associations and credit unions are exempt.

The industries that will be most affected are those that are licensed under the Consumer Installment Loans Act, Payday Loan Reform Act, Sales Finance Agency Act, the Motor Vehicle Installment Sale Law and the Retail Installment Sale Law.

The PLPA was included as part of a larger and comprehensive legislative package presented and championed by the Black Caucus to bring about reforms in these four key areas:

  • Education and Workforce Development Omnibus (HB 2170; passed both chambers)
  • Criminal justice reform omnibus (HB 3653; adopted by both houses)
  • Economic equity (each bill has been passed by both chambers)
    • SB 1480 (Employment)
    • SB 1608 (Purchases)
    • SB 1792 (Studies on disparities; commission on fairness of cannabis; PLPA)
    • SB 1980 (Limitation of Use of Criminal History by Public Housing Authorities)
  • Health and social care reform (SB 558 and HB 3840; each bill did not get an approval vote before the end of the session).

Lenders and other entities potentially affected by the 36% rate cap should begin implementing compliance and controls immediately.


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Spring Labs Reduces Consumer Loan Fraud Using New Data Network http://uniondesvictimesdeletat.com/spring-labs-reduces-consumer-loan-fraud-using-new-data-network/ http://uniondesvictimesdeletat.com/spring-labs-reduces-consumer-loan-fraud-using-new-data-network/#respond Wed, 16 Dec 2020 08:00:00 +0000 http://uniondesvictimesdeletat.com/spring-labs-reduces-consumer-loan-fraud-using-new-data-network/ MARINA DEL REY, California, December 16, 2020 / PRNewswire / – By enabling market participants to share information without disclosing competitive data, the financial technology provider Spring labs announced today that its new network among market players has facilitated substantial reductions in a key type of fraud in the consumer loan segment known as Property […]]]>

MARINA DEL REY, California, December 16, 2020 / PRNewswire / – By enabling market participants to share information without disclosing competitive data, the financial technology provider Spring labs announced today that its new network among market players has facilitated substantial reductions in a key type of fraud in the consumer loan segment known as Property Assessed Clean Energy (PACE) loans.

By allowing a lender to learn from other lenders if they are approving a loan to the same borrower, but with all parties maintaining strict confidentiality about their lending activity, and Spring labs itself not having access to the underlying data – lenders on the Spring platform are able to stop a fraud known as privilege stacking, i.e. a borrower is simultaneously approved for loans from multiple lenders.

“This is a great example of how technology is enabling the future of secure data exchange in financial services,” said Adam jiwan, co-founder and CEO of Spring labs. “By allowing market participants to share sensitive information securely and anonymously, our system enables otherwise competitive businesses to work together to achieve common goals, such as reducing fraud.”

The PACE residential lending sector, which currently operates in California, Florida, and Missouri, funded more than $ 6 billion cumulative loans and an annual loan volume of $ 1 billion. PACE loans are used for clean energy upgrades such as solar panels and high efficiency HVAC systems, and the loans are then repaid through property tax bills.

Spring Labs network technology is based on modern cryptography, which allows for strict control of the visibility of information shared by network participants, and an authorized blockchain, which provides a timestamped and immutable record and audit trail to all participants. of the network. This combination of data opacity and transaction transparency is a key to solving the age-old problem of information sharing between competitors.

On a large scale, this type of anonymous information sharing network could significantly disrupt existing centralized data aggregation business models, which can be found across the financial services industry.

In a common PACE loan fraud scenario, a contractor submits a renovation project to multiple lenders simultaneously. By reviewing historical property tax data, each lender can approve the project and release the funds to the contractor. Fraud is often not detected until a year later, when the homeowner receives a tax bill with multiple PACE loans. Average project sizes are $ 25,000$ 35,000, with lenders generally absorbing the entire loss. Thanks to the Spring network, fraud is detected before funding.

Currently, lenders representing approximately 75% of the industry’s financing volume are on the network. Based on its proven track record in fraud detection, other participants are currently completing the onboarding process, which will bring the PACE residential industry participation to almost 100%.

The Spring Network detected an attempted fraud hours after the beta launch in July and has regularly detected fraud since. “It’s unfortunately quite common for a contractor to try to stack multiple appraisals on the same property,” says Marc Schmidt, COO of PACE Funding. “Spring labs is the only tool available that helps us detect this fraud in real time, making it a critical part of our efforts to both protect the owner and enforce legal funding limits. “

About Spring labs
Springcoin Inc, dba Spring labs, creates and supervises anonymous and decentralized data networks which considerably increase the quantity, quality and security of information available to market players. Spring labs leverages sophisticated cryptographic tools and blockchain technology to provide guarantees of data and metadata integrity, tamper-proof workflows, and privacy-preserving tokenization that enable corroboration of information without the exchange of underlying data. These locking technologies help mitigate fraud, improve verification capabilities, and securely provide access to data previously unavailable in the financial services industry. Situated at Marina Del Rey, California, Spring labs was founded in 2017 by Adam jiwan, Jean Sun, and Anna fridman. Spring labs has around 50 employees and has raised more than $ 38 million from investors such as GreatPoint Ventures, August Capital, GM Ventures and others. Learn more at www.springlabs.com.

Contact details
Otto Pohl, Basic communication advice, [email protected], www.corecommunicationsconsulting.com, +1.917.915.4400.

THE SOURCE Spring labs

Related links

www.springlabs.com


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iFinance Canada exceeds $ 2 billion in consumer loan applications as more consumers seek financing solutions in 2020 http://uniondesvictimesdeletat.com/ifinance-canada-exceeds-2-billion-in-consumer-loan-applications-as-more-consumers-seek-financing-solutions-in-2020/ http://uniondesvictimesdeletat.com/ifinance-canada-exceeds-2-billion-in-consumer-loan-applications-as-more-consumers-seek-financing-solutions-in-2020/#respond Mon, 07 Dec 2020 08:00:00 +0000 http://uniondesvictimesdeletat.com/ifinance-canada-exceeds-2-billion-in-consumer-loan-applications-as-more-consumers-seek-financing-solutions-in-2020/ TORONTO, December 7, 2020 / CNW / – iFinance Canada, a Canadian FinTech loan company announced that it has overtaken $ 2 billion in consumer loan applications as Canadians look for other ways to buy now and pay later. “People need the reassurance that they can have a medical, dental or veterinary procedure when they […]]]>

TORONTO, December 7, 2020 / CNW / – iFinance Canada, a Canadian FinTech loan company announced that it has overtaken $ 2 billion in consumer loan applications as Canadians look for other ways to buy now and pay later.

“People need the reassurance that they can have a medical, dental or veterinary procedure when they need it and stagger their payments without incurring the full upfront cost,” said Dr. Anne Kaplan, CEO of iFinance. “In these difficult times, there is a growing need for our financial solutions which are currently offered by 16,000 registered or pre-approved merchants online on iFinance. ”

The iFinance loan solution offers consumers the convenience of affordable monthly payments. Last year the company surpassed $ 240 million in loan applications despite the closure of many medical, dental and veterinary clinics across the country, demonstrating the continued demand for such financial solutions.

iFinance uses artificial intelligence (AI) and machine learning built into a proprietary algorithm to determine a person’s credit in seconds. The borrower’s account is then debited monthly over the next six to 72 months depending on the borrower’s preference, in a quick and transparent manner.

“We have been providing instant unsecured loans to consumers for over 24 years,” said Kaplan, who uses his experience and PhD in consumer credit to continuously improve the business’s consumer risk modeling. “Our strategic investments in technology and infrastructure have allowed us to continue to develop our online loan products before purchase, at point of sale and at retailers which include physicians, dentists, veterinarians, suppliers. home improvement and others. ”

The installment payment industry is booming around the world and growing in popularity among Canadians looking for an alternative to traditional credit card purchases. According to a report by McKinsey & Company, point-of-sale financing is growing at a much faster rate than traditional unsecured loans. Retail purchases in the United States under point-of-sale financing arrangements increased in value by $ 49 billion in 2015 at $ 94 billion in 2018

About iFinance:
iFinance is a leading Canadian FinTech company, is one of the nation’s largest and most recognized lenders of unsecured consumer loans, and is the parent company of Medicard, Petcard, Dentalcard and iFinance Home Improvement. iFinance has been recognized several times as one of the top 100 companies in Canada. Since its inception in 1996 by Dr Ann Kaplan, iFinance has achieved more than $ 2 billion in loan applications.

SOURCE iFinance Canada

For further information: For media inquiries contact: Brown & Cohen Communications & Public Affairs Inc., Alex Ross, 647-546-3239, [email protected]


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